Home
News
Tech Grid
Interviews
Anecdotes
Think Stack
Press Releases
Articles
  • Enterprise AI

Manufacturing AI Outlook 2026: 98% Exploring AI, 20% Fully Prepared


Manufacturing AI Outlook 2026: 98% Exploring AI, 20% Fully Prepared
  • by: Source Logo
  • |
  • January 21, 2026

Redwood Software has released its “Manufacturing AI and Automation Outlook 2026” report, based on a global survey of 300 manufacturing professionals. The findings highlight a significant gap between ambition and readiness: while 98% of manufacturers are exploring or considering AI-driven automation, only 20% feel fully prepared to deploy it at scale. Many remain stuck in mid-stage automation maturity, with siloed systems, fragmented workflows, and limited data orchestration hindering progress toward autonomous operations.

Quick Intel

  • 98% of manufacturers are exploring or considering AI-driven automation, but only 20% feel fully prepared for scaled deployment.
  • 70% have automated 50% or less of core operations, leaving critical workflows, data flows, and exception handling largely manual.
  • 60% report reducing unplanned downtime by at least 26% through automation, showing clear gains in uptime and throughput.
  • Only 40% have automated exception handling, despite it being one of the most disruptive processes in manufacturing.
  • 78% automate less than half of critical data transfers, restricting real-time decision-making and AI readiness.
  • Redwood customers are 2.7x more likely to reach mid-to-high stages of automation maturity.
  • Orchestration across systems is identified as the key to breaking the mid-maturity plateau and enabling AI at scale.

The Automation Maturity Plateau

Manufacturers have invested heavily in OT, ET, and IT automation, yet progress stalls at system boundaries. Individual processes may be automated, but handoffs, exception handling, and data flows remain manual or script-based, creating friction that limits scalability. This fragmentation prevents AI models from accessing real-time context, slowing the transition from productivity gains to true business transformation.

Inventory turns remain challenging despite uptime improvements, underscoring the constraints of disconnected execution across ERP, MES, and supply chain systems.

AI Ambition vs. Readiness Gap

The report shows widespread enthusiasm for AI, but data readiness and orchestration gaps are major barriers. Manual data transfers and siloed automation pipelines limit the ability to feed AI with accurate, timely information. Manufacturers who prioritize workflow, data, and exception orchestration across environments are better positioned to scale AI and move toward autonomous operations.

“Manufacturers aren't failing at automation — they're hitting the limits of siloed execution,” said Kevin Greene, CEO of Redwood Software. “They have powerful automation across their enterprises, but it operates in fragmented workflows, slowed by friction at handoffs, unmanaged exceptions and delayed or unreliable data flows. Even the best AI models and tools can't scale in that kind of execution pipeline. A well-orchestrated operation, powered by a Service Orchestration and Automation Platform (SOAP) like RunMyJobs by Redwood, connects those fragmented pieces into a single automation fabric, allowing manufacturers to scale automation and AI as they evolve toward autonomous operations.”

Path Forward: Orchestration as the Enabler

The research emphasizes that orchestration—connecting workflows, data flows, and exception handling across systems—is the critical factor for advancing beyond mid-maturity. Redwood’s RunMyJobs platform is highlighted as an example of a SaaS-first automation fabric that embeds AI across the lifecycle, enabling manufacturers to achieve faster production, maintain quality, and prepare for agentic AI-driven operations.

The full “Manufacturing AI and Automation Outlook 2026” report includes detailed benchmarks on maturity stages, AI readiness, operational bottlenecks, and perception gaps between leadership and frontline teams. Download it here.

About Redwood Software

Redwood Software is the leading orchestration platform for the enterprise, driving business transformation at the lowest total cost of ownership. Redwood empowers organizations to intelligently automate and orchestrate mission-critical business and IT processes across complex ERP, hybrid cloud, data and emerging agentic AI systems. Through its SaaS-first automation fabrics — with AI embedded across the entire automation lifecycle — Redwood accelerates your path to the autonomous enterprise. Backed by 30 years of experience, the trust of more than 50% of the Fortune 50 and a culture of customer obsession, Redwood unleashes the human potential in your enterprise to focus on innovation, growth and what's next.

  • AI AutomationRedwood SoftwareDigital Transformation
News Disclaimer
  • Share