NTT DATA: GenAI reshaping global manufacturing but policy gaps remain

Manufacturing is no longer just about machines and manpower. According to a new report by NTT DATA, the sector is undergoing a “complete revolution,” with Generative Artificial Intelligence (GenAI) playing a central role in transforming operations—from supply chain to quality control.

The global study, titled “Feet on the Floor, Eyes on AI: Do you have a plan or a problem?”, surveyed over 500 manufacturing leaders across 34 countries. The findings? GenAI is no longer a buzzword—it’s a business necessity. A staggering 95% of respondents said GenAI is already improving efficiency and financial performance. In Asia-Pacific (APAC), that number jumps to 97%.

From prediction to production: Where GenAI delivers

Use cases are wide-ranging and practical. Manufacturers are deploying GenAI in:

• Supply chain and inventory management

• Knowledge management

• Quality control

• R&D and product design

• Process automation

NTT DATA’s Prasoon Saxena explains the real-world impact: “AI is streamlining processes and redefining what’s possible across the entire manufacturing value chain. From tariff shocks to geopolitical turbulence, GenAI enables manufacturers to stay agile.”

The study also revealed high confidence in combining GenAI with other technologies:

• 94% expect integrating IoT/edge data into GenAI will improve output accuracy.

• 91% say digital twins and GenAI together will boost asset performance and supply chain resilience.

But strategy is still catching up

Despite optimism, many manufacturers are operating without a solid GenAI roadmap. Key challenges include:

• Legacy systems: 92% say outdated infrastructure is slowing progress, yet fewer than half have evaluated their readiness.

• Data bottlenecks: Only 41% feel confident in their data storage and processing capabilities.

• Workforce skills gap: Two-thirds report their teams are not adequately trained in GenAI.

• Ethical oversight: Just 47% say their organizations follow a robust AI governance framework.

In APAC, these gaps persist despite even higher enthusiasm for GenAI integration.

Plan or problem?

"The most successful manufacturers have already woven GenAI into core operations,” said Saxena. “Those without a strategy are not just falling behind—they’re risking long-term failure.”

As global manufacturers rush to modernize, the call is clear: GenAI holds immense promise, but without policies, skills, and infrastructure, that promise could turn into a missed opportunity.