Artificial intelligence is set to drive the biggest productivity boom in a century, according to a new TeamViewer report launched at Hannover Messe, with 71 per cent of manufacturing leaders expecting AI to transform the sector.
The report, which surveyed 105 manufacturing professionals from a broader pool of 1,400 global technology and business leaders, highlights the rapid acceleration of AI adoption in manufacturing.
Currently, 78 per cent of manufacturing leaders use AI tools weekly, up from 46 per cent in the previous year, the company stated in a news release.
This shift is largely attributed to ongoing labour shortages and supply chain disruptions, which are prompting companies to explore technology-driven efficiencies.
TeamViewer’s findings indicate that AI is increasingly embedded in core business functions, with 72 per cent of respondents describing their organisations’ AI usage as mature.
However, only 28 per cent of manufacturing leaders identify as AI experts, pointing to a gap in knowledge that could affect implementation.
TeamViewer noted that the adoption curve is being led in part by younger employees, described as digital natives, who are helping to integrate AI into existing legacy systems.
AI is currently being applied in areas such as customer support automation (28%), data analysis (23%), and supply chain optimisation (19%), with more advanced uses like forecasting and strategic decision-making on the rise.
The impact is already visible on the shop floor, with employees saving an average of 10 hours per month on routine tasks, allowing more time for higher-value responsibilities.
Mei Dent, Chief Product and Technology Officer at TeamViewer, said that AI is transforming both business operations and employee capabilities.
“Young workers, with their digital-native mindset, are leading AI adoption and helping to integrate the technology into manufacturing’s legacy systems,” she said.
According to the report, 77 per cent of decision-makers view AI as essential to improving efficiency and reducing downtime.
Notably, 78 per cent said AI enables better focus on strategic decision-making, while 74 per cent credited it for enhancing their data analysis and decision-making abilities.
The technology is also seen as a tool for upskilling, with 72 per cent stating it has helped them gain new competencies, and 71 per cent linking it to career growth.
From a business standpoint, AI is contributing to improved product quality and defect reduction, with 33% of manufacturers reporting gains in this area—well above the 20 per cent average across other industries.
Financially, 71 per cent anticipate a revenue boost in the next year due to AI, with projected growth reaching as high as 188 per cent.
Despite the optimism, manufacturers face notable hurdles in AI adoption. Chief among these are security concerns, with 76 per cent of respondents citing data risks—higher than the average across sectors.
Other challenges include a lack of AI education (42%), high implementation costs (30%), and limited financial support for scaling AI solutions.
Nevertheless, 81 per cent of manufacturing leaders expect AI investment to grow in the next year. The report suggests that overcoming these barriers will require targeted training programs, strategic financial planning, and stronger leadership.
A large majority (96%) of respondents believe further education is necessary to mitigate risks, and 74% have confirmed plans to implement additional training initiatives.
Additionally, 68 per cent support the appointment of a Chief AI Officer to guide responsible and effective AI integration.
“AI has already proven its ability to transform businesses, but we’ve only scratched the surface of its potential,” Dent added.
“By focusing on collaboration, education, and responsible adoption, manufacturers can harness AI to achieve remarkable results while fostering innovation.”
The full AI Opportunity in Manufacturing report is available for download from TeamViewer.
