Rockwell Automation, the global leader in industrial automation and digital transformation, today revealed findings from its 10th annual “State of Smart Manufacturing Report.” Conducted in March 2025, the study surveyed over 1,500 manufacturers across 17 leading manufacturing nations. As businesses navigate economic uncertainties, the report illustrates how manufacturers are turning to smart technologies like AI to manage risk, enhance performance, and support their workforce. It also explores the uptake of emerging technologies such as artificial intelligence (AI), machine learning (ML), and cloud-based systems.
“Technological progress is opening new doors, enabling people and technology to collaborate in ways that will define our future,” said Blake Moret, Chairman and CEO of Rockwell Automation. “The report clearly shows how manufacturers worldwide are leveraging smart manufacturing to adapt to disruptions and seize new opportunities for greater speed and flexibility. At Rockwell, we believe that innovation and resilience go hand in hand. With the right combination of technology and talent, we can simplify challenges and lead confidently through times of change.”
A significant 81% of manufacturers say that both internal and external pressures are speeding up their digital transformation efforts. Cloud/SaaS, AI, cybersecurity, and quality management are now key areas where manufacturers are prioritizing investments as they adapt to these pressures and look to modernize operations.
The report also reveals that a remarkable 95% of manufacturers have already invested in, or are planning to invest in, AI and machine learning (ML) within the next five years. This reflects a growing commitment to leveraging these technologies to improve efficiency and gain a competitive edge in an increasingly digital marketplace.
In particular, the adoption of generative and causal AI has surged by 12% year-over-year, signaling a shift from initial experimentation to more deliberate and strategic application of these advanced technologies. This growth shows that manufacturers are moving beyond basic AI implementation to using it for more sophisticated, high-impact applications.
Cybersecurity remains a major concern, ranked as the second greatest external risk for manufacturers. With 49% of companies planning to use AI to strengthen cybersecurity by 2025—up from 40% in 2024—AI’s role in securing industrial operations is becoming more integral. Additionally, nearly half of manufacturers (48%) plan to reassign or hire more workers as a result of their smart manufacturing investments, with 41% turning to AI and automation to tackle labor shortages and bridge skills gaps. Furthermore, AI continues to play a central role in quality control, with 50% of manufacturers intending to apply AI/ML to enhance product quality by 2025.
The report also highlights a growing focus on operational efficiency and adaptability. Manufacturers are increasingly deploying smart technologies to improve supply chains, drive sustainability efforts, and enable faster, more informed decision-making. Additionally, there has been a 5% increase in the emphasis on analytical and AI skills for leadership, underscoring the need for both talent development and technological innovation to go hand in hand. Despite the significant progress, manufacturers face challenges when adopting AI. Nearly 50% of respondents consider the ability to apply AI a critical skill, up from just 10% the previous year.
Rockwell Automation, based in Milwaukee, Wisconsin, is a global leader in industrial automation and digital transformation. With a workforce of approximately 27,000 employees, Rockwell Automation serves customers in over 100 countries, helping them harness the power of technology to make industries more productive and sustainable. To learn more about how Rockwell is bringing the Connected Enterprise® to life across industrial enterprises, visit their website.
