Generative AI is reshaping manufacturing—reducing downtime, improving product quality, and unlocking new growth opportunities and revenue streams across the industry.
The Fourth Industrial Revolution is here—and for manufacturers, agility and real-time decision-making are no longer optional. Artificial Intelligence (AI) has become a strategic imperative, enabling predictive maintenance, intelligent automation, and data-driven optimization across the value chain.
1
AI is a strategic shift, not just a tool
Intelligent manufacturing isn’t just about adopting AI—it’s about reimagining industrial ecosystems. By embedding AI across operations, manufacturers can unlock new efficiencies, build resilience, and gain a competitive edge. From production lines to back-office functions, AI is reshaping how manufacturers operate, innovate, and grow.
2
Smarter supply chains with predictive intelligence
AI empowers supply chains with dynamic decision-making. By integrating internal data with external signals—like customer demand and global indices—manufacturers can optimize costs, forecast demand, manage inventory, and identify vulnerabilities faster than ever.
3
AI and AR are elevating the workforce
AI and augmented reality are revolutionizing workforce enablement. Employees gain access to real-time training, automated support for routine tasks, and tools for dynamic scheduling and predictive maintenance—boosting productivity and safety.
4
AI is modernizing the back office
While front-line operations often lead digital transformation, AI is now unlocking value in traditionally under-digitized areas. Finance, procurement, and HR functions are being reimagined with intelligent automation and data-driven insights.
Discover the pivotal insights from our latest survey, revealing how AI can empower your workforce, streamline operations, and drive growth. Stay competitive and lead the next generation of retail by integrating AI deeply into your business. Download the full report and start your transformation journey today.
GenAI is not just a technological upgrade; it’s a strategic imperative for manufacturers looking to thrive in this digital age we find ourselves in. By harnessing the power of data and automation, U.S. manufacturers can unlock new levels of efficiency and innovation that were previously unimaginable.
Claudia Saran
KPMG U.S. Sector Leader for Industrial Manufacturing
This report gives industrial manufacturers a data-backed view of how AI is becoming a competitive differentiator—offering strategic insights to accelerate adoption and scale impact. As Industry 5.0 ushers in a new era of human-centric, multi-modal AI, manufacturers are moving beyond isolated pilots to enterprise-wide transformation. Based on a global survey of 183 senior AI leaders, the report reveals how organizations are using AI to boost efficiency, agility, and sustainability—while tackling challenges like fragmented data, legacy systems, and workforce transformation. This report uncovers what sets AI-ready manufacturers apart and offers a roadmap for those ready to lead the next wave of intelligent manufacturing.
Key findings at a glance
Key findings are highlighted below. Detailed findings are available in the full report.
U.S. manufacturers are ramping up AI investments to scale impact and accelerate innovation.
To truly understand the transformative power of GenAI in manufacturing, it’s helpful to explore its impact across three distinct phases of AI maturity: Enable, Embed, and Evolve. Each phase marks a critical step in the journey from operational efficiency to strategic innovation. The following data points not only showcase how GenAI is reshaping production lines and product quality—they also underscore why embracing this technology is a strategic imperative for manufacturers aiming to lead in a complex global economy.
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"The intelligent enterprise: A blueprint for creating value through AI-driven transformation" reports provide a detailed guide for organizations to implement AI, optimize operations, and enhance market impact. Released in a series, the reports will cover eight critical industry sectors and outline a three-phase AI transformation process: Enable, Embed, and Evolve. Insights stem from in-depth interviews with AI experts, sector-specific KPMG professionals, and a survey of 1,390 decision-makers across eight global markets, including Australia, China, Germany, the UK, Canada, France, Japan, and the US. This research offers actionable strategies tailored to each industry sector.
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