TCS, in collaboration with Amazon Web Services (AWS), released its Future-Ready Manufacturing Study 2025. The report shows a compelling picture, by 2026 AI is widely expected to become one of the top three contributors to operating margins for global manufacturers.
According to the survey of 216 senior executives across automotive, industrial machinery, aerospace/defence, process industries, chemicals, and heavy-equipment segments, mostly in North America and Europe, 75% believe AI will significantly boost their margins by 2026.
That’s not all: 88% of respondents expect AI to deliver at least a 5% increase in operating margin, while about one in four anticipate “double-digit” returns i.e. more than 10% margin improvement.
What’s Fueling the Confidence in AI-Driven Margin Gains
About 51 % of their transformation spending over the next two years is being directed toward AI and autonomous systems, more than for cloud infrastructure, data modernization, or workforce reskilling.
This shows that organizations are not treating AI as a fringe innovation, but as a central pillar of their future-ready strategy.
According to The TCS Future-Ready Manufacturing Study 2025, 74 % of leaders expect AI agents to manage 11%–50% of routine production decisions by 2028. Moving beyond traditional automation or rule-based systems. This represents AI-enabled autonomy on the shop floor, dynamic decision-making, real-time adaptation, and reduced dependence on human intervention for repetitive tasks.
Also, more than 67 % of respondents report improved real-time supply-chain visibility, enhancing resilience, responsiveness, and reducing wastage or delays.
Over 30 % of surveyed manufacturers expect meaningful productivity gains thanks to AI-led modernization with efficiency improvements, quality gains, and better throughput. At a time when manufacturing is under pressure from supply-chain volatility, energy costs, and demand fluctuations, the predictability and help by AI can directly support margins, not just top-line growth.
But, Not All Are Fully “AI-Ready” Yet
Despite the bullish outlook, the study uncovers a significant structural challenge: only 21 % of respondents say they are “fully AI-ready”.
The bottlenecks are not just technological, many plants still wrestle with fragmented data systems, legacy infrastructure, poor data integration across production, supply chain and enterprise systems. Without a clean, well-integrated data backbone, AI can’t reliably deliver on its promise.
Workforce readiness is another constraint: while human–AI collaboration is anticipated to rise (with 89 % of leaders expecting increased collaboration on the factory floor).
Read the full TCS Future-Ready Manufacturing Study 2025: https://www.tcs.com/what-we-do/industries/manufacturing/future-ready-manufacturing-study-2025
Also Read: How Adaptive Manufacturing and AI are Reshaping Industry Resilience: Report
