NTT DATA Report: GenAI Sparks Major Transformation in Global Manufacturing

Singapore, 9 May 2025 – Manufacturers worldwide are rapidly deploying generative AI (GenAI) to modernise operations, boost productivity, and build competitive advantage, yet many still lack the frameworks and infrastructure to support sustainable success, according to new research by NTT DATA, a global leader in digital and IT services.

The report, Feet on the Floor, Eyes on AI: Do you have a plan or a problem?, draws insights from over 500 manufacturing executives across 34 countries, highlighting the growing influence of GenAI on industrial transformation — from smart factory adoption to supply chain resilience.

GenAI is already driving bottom-line results

The findings show that the vast majority of manufacturers are already realising tangible benefits from GenAI:

• 95% of global respondents – and 97% in APAC – report improved operational efficiency and financial performance.
• 94% (APAC: 99%) believe that integrating IoT and edge data into GenAI models will significantly enhance output accuracy and relevance.
• 91% globally (97% in APAC) expect that merging GenAI with digital twins will lead to better asset performance and stronger supply chain resilience.

Common applications include inventory and supply chain management, process automation, quality assurance, research and development, and knowledge sharing.

“AI is streamlining processes and redefining what’s possible across the entire manufacturing value chain, from supply chain predictions to quality control,” said Prasoon Saxena, Co-Lead, Products Industries, NTT DATA, Inc. “GenAI can help organisations achieve flexibility in fast-changing business environments, especially in the face of uncertain tariff policies worldwide.”

Barriers to enterprise-scale GenAI remain

While GenAI adoption is accelerating, the research points to several persistent barriers across people, technology, and governance:

• Legacy infrastructure remains a top challenge, with 92% globally (91% in APAC) citing outdated systems as obstacles — yet fewer than half have assessed their infrastructure readiness.
• Despite high expectations for GenAI-IoT integration, not all manufacturers are confident in executing such initiatives.
• Only 47% (APAC: 48%) say their organisation has a robust ethical AI framework in place — raising concerns about governance and risk.
• Skills shortages are holding back progress: Two-thirds of global respondents and 53% in APAC say their workforce lacks the skills to use GenAI effectively.
• Data capabilities are a limiting factor, with just 41% (46% in APAC) confident in their storage and processing capacity to meet GenAI demands.

Strategic planning essential to avoid future risks

The report warns that while GenAI’s potential is vast, failure to align its adoption with robust governance and infrastructure investment could lead to long-term disruption and missed value.

“The most successful manufacturing organisations have already integrated GenAI into essential operations,” Saxena said. “Companies failing to plan, deploy and govern GenAI strategically will not only have a problem, they may be planning to fail.”