AI In Manufacturing | 2026 Outlook For AI And Automation Trends

Manufacturing AI and automation outlook 2026

98% of manufacturers are exploring AI — but only 20% feel ready to use it at scale

Standout findings:

60% have reduced unplanned downtime by at least 26% with automation
Only 40% automate exception handling, the process causing the most disruption
78% automate less than half of critical data transfers
Redwood Software customers are 2.7x as likely to be in mid- to high stages of automation maturity

Why download this report?

AI in manufacturing is moving fast, from predictive maintenance and demand forecasting to decision-making on the factory floor. Manufacturers are investing in automation, AI technologies and smart manufacturing initiatives to optimize uptime, streamline production processes and gain a competitive advantage through better use of real-time data.

Yet most manufacturing operations are not ready to scale AI. Automation remains fragmented, critical data flows are still manual and disconnected systems limit data quality and operational efficiency. This original research from Redwood shows where automation is delivering measurable impact today, why many manufacturers are stuck at mid-stage automation maturity and what must change to build AI-ready, connected manufacturing operations.

What’s inside:

Where most manufacturers are on the journey to automation fabrics

The strong results automation delivers today — and what limits its impact at scale

Barriers to scaling automation in supply chain, inventory management and more

How leadership and front-line teams see automation progress and priorities

What differentiates the automation ecosystem of AI-ready manufacturers

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Manufacturing AI and automation outlook 2026

Why download this report?

What’s inside:

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