27 August 2025
A recent study by FS has highlighted the rapid global uptake of Industrial Artificial Intelligence (AI), revealing significant advancements alongside notable hurdles faced by organisations.
The comprehensive survey, which gathered insights from over 1,700 senior decision makers across various industrial sectors, uncovers what IFS describes as an "Invisible Revolution" in how businesses are integrating AI into their core operations. Rather than focusing solely on customer-facing tools, many companies are embedding AI into essential processes such as maintenance and supply chain management to optimise efficiency.
The findings suggest a substantial increase in AI adoption is imminent, with expectations that usage will jump from 32% currently to 59% within the next year. However, this swift expansion has exposed an "AI Execution Gap," reflecting the disparity between the pace of adoption and organisations' readiness to utilise AI effectively. Over half of the surveyed leaders admitted that their organisations lack a clear AI strategy, while just over half acknowledged that their management teams do not fully understand AI. Moreover, nearly all respondents recognised that their global workforce would require significant reskilling to fully leverage AI's potential.
“AI is a key driver of business performance. It is crucial to bring together people, processes, and products to deliver tangible outcomes. While the adoption rate is encouraging, the real breakthrough will come from building trust, developing strategies, and nurturing talent. Industrial AI offers an extraordinary opportunity, and those who act swiftly will lead the next decade of industry,” said Kriti Sharma, CEO of IFS Nexus Black.
The research also showcased the tangible benefits of AI, with 88% of organisations reporting improvements to profitability through AI applications. Regional data revealed that 92% of US companies and 94% of German firms experienced financial gains. Additionally, 70% of respondents said their returns on AI investments exceeded initial expectations. Despite these positive results, trust in AI remains relatively low among senior leaders, with only 29% comfortable with AI making autonomous strategic decisions. The majority (68%) prefer human oversight to validate AI outputs, and concerns over AI bias persist, with 63% of US respondents citing it as a primary worry, compared to 40% in Nordic countries.
In response to these concerns, a notable 65% of global leaders support establishing an independent, international regulatory body to oversee AI development and deployment, aiming to bridge the trust gap between technology and business users.
The study also examined organisational preparedness and the impact on employees, revealing that over half of business leaders believe that up to 60% of their workforce will need new skills to adapt to AI-driven changes. Some estimate that the figure could be as high as 100%, underscoring the importance of training and upskilling in maintaining competitiveness in an increasingly AI-centric industrial landscape.
On the business model front, AI is transforming how organisations operate, moving beyond productivity enhancements to fundamentally reshaping service delivery. The technology is widely used for automating maintenance, predicting operational disruptions, and optimising supply chains across sectors such as asset management, field service, and manufacturing. The survey found that 54% of organisations are already deploying automation AI, 45% use predictive AI, and 35% are experimenting with "Agentic AI" capable of independently executing decisions within operational workflows.
Furthermore, 77% of industry leaders reported that AI is accelerating the shift towards "servitisation" — a move from selling physical products to offering outcome-based services centred on uptime, performance, and ongoing value.
“We are entering a bold new era where AI is embedding real-time, decision-grade intelligence across the enterprise. It is automating complex tasks, predicting the unexpected, and enabling new service-focused business models. This shift from task automation to strategic transformation will define the future of industry, and organisations that embrace it will lead the next chapter,” said Kriti Sharma.
Looking ahead, the study suggests that the next 12 months will be critical for industrial enterprises seeking to capitalise on AI. Companies that address skills gaps, craft clear strategies, and foster trust in AI systems will be better positioned to thrive as AI becomes an integral part of daily operations.
“We are witnessing a profound and often underestimated shift in global business. Industrial AI is already reshaping how industries operate, compete, and grow. The time to act is now,” said Sharma.
