New Delhi— Manufacturers that fully integrate artificial intelligence (AI) into their operations are poised to gain a major competitive advantage, according to a new report by KPMG International. About 93% of industry leaders across eight countries, including India, agreed with this view.
The report reveals that 96% of companies have already seen improvements in operations and efficiency, while 62% have reported returns on investment (ROI) exceeding 10%. Notably, 80% have invested in AI training and skills development.
Currently, 74% of companies are using machine learning, 72% employ predictive analytics, and 67% are exploring agentic AI—AI systems that can make autonomous decisions.
AI is transforming manufacturing across production, supply chain, workforce, and back-office functions. It enables real-time decision-making, intelligent forecasting, self-optimizing workflows, and predictive maintenance. In the back office, AI is streamlining finance, procurement, and HR—traditionally under-digitized areas.
“AI is no longer optional—it’s a strategic necessity,” said S. Sathish, Partner and National Sector Leader, Industrial Manufacturing, KPMG in India. “With structured AI adoption and data-driven insights, manufacturers have a unique opportunity to create long-term value.”
AI’s biggest impact is currently seen in R&D and IT, cited by 77% of leaders, but its influence is growing across the entire value chain. Encouragingly, 89% say their employees are adapting quickly to AI technologies, driving broader adoption. (Source: IANS)
