Manufacturing Organizations Turn to GenAI to Establish Smart Factories

Manufacturing organizations worldwide are increasingly turning to Generative AI (GenAI) to establish smart factories, spur innovation, improve productivity, build resilience, and gain competitive advantage. A recent study by NTT DATA, a global leader in digital business and technology services, has found that 95% of respondents said GenAI is already directly improving efficiency and bottom-line performance.

Key Findings of the Study

The study surveyed more than 500 manufacturing leaders and decision makers in 34 countries. The key findings include:

95% of respondents said GenAI is already directly improving efficiency and bottom-line performance.
94% expect the integration of Internet of Things (i.e., IoT/edge) data into GenAI models will significantly improve the accuracy and relevance of AI-generated outputs.
91% say combining digital twins and GenAI will improve both physical asset performance and supply chain resilience.

Use Cases for GenAI in Manufacturing

The respondents said their most frequent use cases for GenAI are:

Supply chain and inventory management
Knowledge management
Quality control
Research and development
Process automation

Benefits of GenAI in Manufacturing

“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 organizations achieve flexibility in fast-changing business environments, especially in the face of uncertain tariff policies worldwide.”

Challenges to Success

Despite the benefits of GenAI, manufacturers still face significant challenges that include:

Infrastructure: 92% of manufacturers said old technologies hinder vital initiatives, but less than half have conducted a full infrastructure readiness assessment.
Complementary technologies: 94% expect the integration of Internet of Things (i.e., IoT/edge) data into GenAI models will significantly improve the accuracy and relevance of AI-generated outputs, yet not all are confident in their ability to complete such integrations.
Responsible frameworks: While ethical AI is on the radar, only 47% of manufacturing leaders strongly agree their organization follows a robust framework that balances risk with value creation.
Workforce readiness: Two-thirds of manufacturers say their employees lack the necessary skills to use GenAI effectively, creating functional and operational disadvantages and risks.
Data Management: Just 41% of manufacturers strongly agree they have enough data storage and processing capabilities to support their GenAI workload needs, which will limit success.

Strategic Planning for GenAI Success

“The most successful manufacturing organizations 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.”

What NTT DATA Can Offer

NTT DATA, a $30+ billion trusted global innovator of business and technology services, can offer a range of services to help manufacturing organizations achieve GenAI success. These services include:

Business and technology consulting
Data and artificial intelligence
Industry solutions
Application development, implementation, and management
Development, implementation, and management of digital and AI infrastructure

About NTT DATA

NTT DATA is a trusted global innovator of business and technology services. As a Global Top Employer, they have experts in more than 50 countries and a robust partner ecosystem of established and start-up companies. Their services include business and technology consulting, data and artificial intelligence, industry solutions, and application development, implementation, and management. They are also one of the leading providers of digital and AI infrastructure in the world.

Visit NTT DATA’s Website

Visit nttdata.com to learn more about NTT DATA’s AI services for manufacturing.

About NTT DATA Group

NTT Group, which invests over $3.6 billion each year in R&D, is the parent company of NTT DATA. NTT Group invests in R&D to help organizations and society move confidently and sustainably into the digital future.

Conclusion

Manufacturing organizations worldwide are increasingly turning to GenAI to establish smart factories, spur innovation, improve productivity, build resilience, and gain competitive advantage. By understanding the benefits and challenges of GenAI in manufacturing, organizations can make informed decisions about their future and achieve success in this rapidly changing landscape.