Survey finds 82% of manufacturers are increasing AI budgets for 2024

Rootstock Software, San Ramon, Calif., has announced results from its "State of AI in Manufacturing" survey. Compiled from a survey of 350 manufacturers in the U.S., U.K., and Canada, the study assesses how manufacturers are currently using AI and their plans for future adoption.

Most notably, the survey revealed that despite economic headwinds, 82% of surveyed manufacturers plan to increase their budgets for AI in the next 12 to 18 months, with 24% planning increases from 26% to 50%.

In the year since ChatGPT was first introduced, AI has created a groundswell of interest across industries and particularly in manufacturing. Manufacturers have long needed tools capable of rapidly transforming operational, supply chain, and production processes, which are the exact areas where AI can drive significant value.

More than 70% of respondents said they have implemented some form of AI into their operations already. Automation software is the most used type of AI at this stage (60%), though manufacturers are exploring other types, including predictive AI (37%) and generative AI (35%).

Respondents indicated that the biggest barrier to AI adoption is a lack of internal knowledge (49%), followed by difficulty integrating (43%) and high implementation costs (37%). And only 37% indicated they are very or extremely confident in the data underpinning their AI initiatives.

However, only 12% of surveyed manufacturers fear that AI will take their job. In fact, 76% are somewhat, very, or extremely excited to use AI. And 91% of respondents agreed that AI is important to the future of manufacturing.