AI Maturity in Manufacturing May 2025 Preface Colin Fleming Holly Briedis The AI revolution in manufacturing The AI race is on Rapid change brings challenges AI maturity is a fast-moving target 10pts Seizing AI opportunities AI boosts margins 82% Manufacturers are investing more in AI Manufacturers report a 7.6% average increase in gross margins from their use of AI over the past year. Agentic AI moves center stage How agentic AI boosts performance More than 20% of manufacturers employ agentic AI, and another 45% are considering adopting it over the next 12 months. Real world AI impact Integrating AI into Toyota’s next-generation vehicles Autonomous vehicles and physical AI How Eaton transformed employee services with assistive AI agents Now we’re starting to realize productivity gains through AI summarization, knowledge article writing, and search.” Manufacturers cite multiple AI use cases across the value chain Customer sales and service Production and quality control Supply chain and logistics Riding the AI technology curve Sridharan Subramanian MY TAKE Pacesetters lead the way