Industrial firms are adopting AI faster than their staff can handle
26 August 2025 
Source: IFS
Industrial companies are adopting AI faster than their staff are able to upskill, according to a new global survey conducted by the industrial AI software supplier, IFS. Its study of more than 1,700 senior decision-makers at industrial enterprises globally reveals that while organisations are already adopting AI, they are not fully prepared for its implementation. IFS calls this “the AI execution gap”.
IFS predicts that industrial AI adoption will nearly double from 32% to 59% within the next 12 months, even though almost all (99%) workers will require major reskilling to harness the positive impacts of industrial AI.
More than half of the business leaders interviewed estimate that up to 60% of their employees will need new skills, with a third saying the proportion could be as high as 100%.
More than half (52%) of those quizzed admit that their managers don’t fully understand AI. The IFS Invisible Revolution Study 2025 predicts that in the next 12 months, the number of companies moving up the maturity curve from early AI experimentation will plummet from 24% to just 7%.
“It’s time to plug the AI execution gap – bring people, process and product together to deliver tangible outcomes,” says Kriti Sharma, CEO of IFS Nexus Black. “The pace of adoption is inspiring, but the next big unlock will come from scaling trust, strategy, and talent. Industrial AI is a powerful force for good, and we’re in a moment of opportunity. Those who move fast will lead the next decade of industry.”
The research reveals that while AI can already deliver impressive returns, most organisations remain unprepared to scale its impact. More than half of business leaders (53%) admit their organisations still lack a clear AI strategy.
But the study discovers opportunities for companies that do embrace AI. Most (70%) are reporting better-than-expected ROIs from their AI investments, and 88% say that AI has already improved their profitability, rising to 92% in the US and 94% in Germany.
Despite growing confidence in AI’s potential to boost productivity and growth, trust remains a major hurdle. Only 29% of those interviewed are comfortable allowing AI to make strategic decisions autonomously, while 68% say a human must still confirm or approve AI-generated outputs. Concerns over bias also persist, particularly in the US, where 63% of respondents cite it as a top concern, compared to just 40% in the Nordic countries.
Two thirds (65%) of the industrial leaders support the creation of an independent, international AI regulatory body to help close the trust gap.
Industrial AI is fundamentally reshaping the way industrial enterprises operate, IFS asserts. More than half (54%) of industrial organisations are already using automation AI – for tasks such as maintenance, predicting disruptions, optimising supply chains, and intelligent decision-making – while 45% are deploying predictive AI. Already, 35% are experimenting with agentic AI capable of executing decisions autonomously.
AI is influencing business models, with 77% of those surveyed saying it is accelerating servitisation – the evolution from product sales to outcome-based services, where businesses deliver uptime, performance, and continuous value, rather than just physical goods.
“This is a bold new era where AI is redefining how industries create and deliver value,” Sharma declares. “Industrial AI is moving into real-time, decision-grade intelligence embedded across the enterprise. It’s already securely automating the complex, predicting the unexpected, and powering new service-led business models. This is about shifting from tasks to transformation, and the organisations who embrace that shift will lead the next industrial chapter.”
IFS suggests that the next 12 months will be decisive as organisations that close the AI execution gap now, will shape the future of industrial leadership.
“We’re experiencing one of the most profound and underestimated shifts in global business,” Sharma concludes. “Industrial AI is here and already reshaping how entire industries run, compete, and grow. The time is now.”
