Automation leader Rockwell Automation has released its 10th Annual State of Smart Manufacturing Report, revealing a significant uptick in AI investments. The study shows that manufacturers worldwide are increasingly turning to artificial intelligence to enhance resilience and drive efficiency in today’s uncertain economic climate—signaling a transformative shift across the industrial landscape.
A Global Study Reflecting Industry Momentum
The State of Smart Manufacturing Report, conducted in March 2025, surveyed over 1,500 manufacturers across 17 leading industrial nations. It delivers a global snapshot of how digital transformation—particularly AI—is reshaping operations in energy-intensive, supply chain-driven sectors.
AI Investment on the Rise
One of the key findings of the report is the surge in AI adoption. According to the data, 95% of manufacturers have either already invested in or plan to invest in AI and machine learning technologies within the next five years.
81% of respondents cite internal efficiency and external competitiveness as primary drivers of digital transformation, with AI, cloud/SaaS, cybersecurity, and quality management among the top areas of investment. Notably, there’s been a 12% year-over-year increase in organizations investing in generative and causal AI, signaling a shift from exploratory pilots to real-world deployment.
Cybersecurity: From Afterthought to Strategic Priority
Long underestimated, cybersecurity has become a top strategic concern for manufacturers. It now ranks as the second most significant external risk, reflecting the growing complexity and interconnectivity of modern industrial systems.
The report shows that 49% of manufacturers plan to rely on AI for cybersecurity management in 2025, up from 40% in 2024. This marks a turning point, as manufacturers begin treating cybersecurity not merely as an IT function, but as a critical part of operational resilience—especially in cloud-connected environments.
AI-Powered Quality Control
For the second year in a row, quality control remains the leading application for AI in manufacturing. Half of the surveyed companies plan to use AI/ML to support product quality by 2025, underscoring the importance of precision in increasingly complex production environments.
Rockwell Automation has already addressed this need with VisionAI, an advanced quality inspection solution. As previously reported by DirectIndustry, VisionAI fuses traditional machine vision with AI to identify subtle defects that rule-based systems may miss. It enables real-time, high-accuracy inspection on high-speed production lines, making it a powerful tool in industries such as automotive, electronics, and food and beverage.
Digital Pressures and Workforce Strategy
Digital transformation isn’t just about adopting new tools—it’s also about rethinking workforce dynamics. 81% of manufacturers cite internal efficiency and external competition as top motivators for transformation.
With 48% of companies rethinking workforce roles, many see AI as a way to augment rather than replace human labor—a critical strategy amid global labor shortages. As Rockwell has consistently emphasized, workforce development through upskilling and reskilling is essential.
For example, at the 2022 Automation Fair, Jerry Foster, CTO of Plex by Rockwell Automation, said:
“We are not going to be able to fill all of the open jobs if we don’t make our existing workers more productive, more effective, and more efficient. That’s the only way. Technologies like cloud, AI, AR, robotics, and automation will give us a fighting chance against what’s coming in the next 5 to 10 years.”
Human-Machine Synergy at the Core
In the press release announcing the report, Blake Moret, Chairman and CEO of Rockwell Automation, emphasized the importance of blending human expertise with smart technologies:
“Today’s technology advancements are unlocking new opportunities where the combined potential of people and technology will shape our collective future. As this year’s report shows, manufacturers around the world are using smart manufacturing to navigate disruption and create new opportunities for speed and agility. At Rockwell, we believe innovation and resilience go hand in hand. With the right technology and right people, we can simplify complexity and lead with confidence during times of dynamic change.”
You can find the full report on Rockwell Automation’s official website.
