AI & ML News

AI to Become a Core Margin Driver for Global Manufacturers by 2026, Finds TCS–AWS Study

Anupam Singhal

Only 21% of manufacturers are fully AI-ready despite high expectations from agentic systems, decision intelligence, and autonomy.

Tata Consultancy Services (TCS), in collaboration with Amazon Web Services (AWS), has released the Future-Ready Manufacturing Study 2025, revealing a sector in the midst of a fundamental shift toward AI-driven autonomy. With tightening margins, supply-chain volatility, and rising competitive pressures, manufacturers are accelerating investments in AI, cloud, and real-time intelligence to build factories that can predict, adapt, and self-optimise.

According to the study, 75% of global manufacturers expect AI to be among the top three contributors to operating margins by 2026, underscoring strong confidence in AI-enabled productivity and decision-making. Yet only 21% say they are fully AI-ready, pointing to persistent challenges in data integration, foundational systems, and cross-plant interoperability.

“AI is rapidly becoming the intelligence layer that will redefine factory performance for the next decade.” — Anupam Singhal

The study, which surveyed 216 senior leaders across major manufacturing segments in North America and Europe, highlights a rapid shift toward Agentic AI, with 74% of respondents expecting AI agents to manage 11–50% of routine production decisions by 2028. From dynamic scheduling to predictive quality, AI-driven use cases are beginning to deliver measurable returns, with nearly 40% of manufacturers reporting early gains.

Anupam Singhal, President – Manufacturing, TCS, noted that manufacturing’s legacy of precision and performance now converges with AI’s predictive capabilities. He emphasized that intelligent autonomy is emerging as the next defining lever for resilience and business transformation.

The findings also reveal rising maturity in real-time supply-chain visibility, with 67% of leaders reporting improved transparency, enabling faster response cycles and stronger operational resilience. More than 30% expect meaningful productivity gains from AI-led modernization initiatives, reaffirming industry momentum toward self-governing digital factories.

Ozgur Tohumcu, General Manager – Automotive and Manufacturing at AWS, said that AI-powered autonomous operations are reshaping the manufacturing landscape, enabling systems that can “predict, adapt, and act independently” with cloud-native intelligence.

Backed by decades of domain expertise, TCS continues to support global manufacturers through modernization, intelligent operations, and AI-led transformation initiatives, helping enterprises build the resilient, adaptive, and autonomous factories of the future.

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