Study: 75% see AI as margin driver, but only 21% report their data is up to the task

Results of a new study suggest manufacturers see AI’s potential as a margin driver but doubt their data infrastructure is ready to take full advantage of all the technology has to offer their operations.

The study, released Dec. 3, jointly conducted by Amazon Web Services and India-based researchers Tata Consultancy Services, and based on insights from 216 senior manufacturing leaders across North America and Europe, shows that fully three-quarters—exactly 75%—of the manufacturing leaders expect AI to become a top-three margin driver by next year, with 88% anticipating the technology will capture at least 5% of operating margin.

However, only 21% said in the report, titled Future-Ready Manufacturing Study 2025, that their operations are fully AI-ready, primarily due to data infrastructure obstacles, “highlighting foundational gaps in data, integration, and system readiness across plants and supply chains,” according to release about the joint study.

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Nevertheless, half of the respondents—51%—said their digital transformation spending over the next two years will be pointed toward AI and autonomous systems.

Also importantly, nearly three-quarters—74%—expect AI agents to manage 11% to 50% of routine production decisions without human approval by 2028, which AWS and TCS said signals a “dramatic shift towards autonomous operations.”

“Manufacturing is an industry defined by precision, reliability, and the relentless pursuit of performance,” said Anupam Singhal, TCS president of manufacturing.

“Today, that strength of foundation becomes multifold with AI in orchestrating decisions—delivering transformational business outcomes through greater predictability, stability, and control."

Though data and the data infrastructure is a major concern reflected in the survey, there are others: 52% of the respondents said security and governance concerns are obstacles to scaling AI in their manufacturing operations and another 47% reported the talent gap is a major plant-level hindrance.

More findings from the joint AWS/TCS survey:

• On the resilience front, 67% report improved real-time supply-chain visibility by leveraging AI while 49% are using the technology for dynamic inventory optimization.
• 61% of the respondents said they continue to rely on traditional risk mitigation strategies like increased safety stock, highlighting an ongoing shift from reactive to proactive, AI-driven approaches.
• 89% anticipate increased human–AI collaboration on the factory floor as AI adoption scales.
• Agentic AI emerged as a priority capability, accelerating autonomous decision-making across plants.
• More than 30% forecast meaningful productivity gains from AI-led modernization.

The 216 surveyed senior leaders across North America and Europe represent automotive, industrial machinery, aerospace and defense, process industries, chemicals, and heavy equipment.

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“Manufacturers today are facing unprecedented pressure—from tight margins to volatile supply chains and workforce gaps, said Ozgur Tohumcu, GM, automotive and manufacturing, at AWS.

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“By embedding artificial intelligence into every layer of the operation and leveraging cloud-native architecture, manufacturers can move beyond simple automation to true autonomous decision-making—where systems predict, adapt, and act independently with minimal human intervention.”