AI Automation Expected To Drive 40% Manufacturing Productivity Gains By 2035: Report
Updated: Jun 20, 2025 02:10:22pm
AI Automation Expected To Drive 40% Manufacturing Productivity Gains By 2035: Report
New Delhi, Jun 20 (KNN) Artificial intelligence-driven automation is projected to enhance global manufacturing productivity by up to 40 percent by 2035, while achieving 90 percent accuracy in defect detection and improving quality control systems by 35 percent, according to a recent report released by the ASSOCHAM-Odisha State Development Council in partnership with Primus Partners.
The comprehensive study indicates that AI adoption is anticipated to increase by 20 percent, potentially reaching 378 million users worldwide, with the manufacturing sector serving as a primary catalyst for this growth.
The technology is fundamentally transforming traditional manufacturing processes across multiple industries and geographical regions.
Pankaj Lochan Mohanty, Chairman, Odisha State Development Council at ASSOCHAM, emphasized the transformative nature of AI in manufacturing operations.
He noted that globally, AI-enabled factories have demonstrated productivity improvements of up to 40 percent alongside 90 percent defect detection accuracy rates.
Mohanty highlighted Odisha's strategic positioning within India's Industry 4.0 landscape, citing the state's 41.2 million tonnes per annum steel production capacity, contribution of 55 percent to India's iron ore output, and established digital infrastructure ecosystem.
Current adoption patterns reveal that approximately 35 percent of global manufacturers implemented AI technologies in the previous year, primarily focusing on predictive maintenance, quality control systems, and supply chain management optimization.
The automotive sector demonstrates particularly strong adoption rates, with 54 percent of Indian automotive companies integrating AI solutions for smart assembly line operations, predictive maintenance protocols, and quality control processes.
The pharmaceutical industry is experiencing significant AI integration in drug discovery processes and compliance monitoring systems, with automated batch analysis capabilities enabling faster and safer production methodologies.
Machine vision systems enhanced by artificial intelligence are facilitating high-precision defect detection across manufacturing environments.
Industry projections indicate substantial growth potential, with the electronics sector expected to reach a valuation of 300 billion USD by 2026.
The textile industry, which contributes 2.3 percent to India's gross domestic product, is incorporating AI technologies for customized design processes, efficient material cutting operations, and defect detection systems, thereby enhancing both productivity levels and export competitiveness.
Kanishk Maheshwari, Co-Founder and Managing Director, Primus Partners, reported that artificial intelligence is rapidly transforming global manufacturing landscapes, with over 80 percent of manufacturers having adopted AI technologies across their operational frameworks.
Research findings demonstrate that AI implementation can reduce manufacturing defects by 66 percent, decrease material costs by 12.5 percent, and accelerate production cycles by 20 percent, according to Maheshwari's analysis.
(KNN Bureau)





Loading...
