Even though 98% of manufacturers are exploring artificial intelligence, a staggering 80% are not fully automated. The reasons are complex.
Manufacturing automation is a hot topic as artificial intelligence (AI) and other technologies make it easier than ever for plants to address a growing skill gap, ever-rising demand and higher costs. Automation seems like the magic wand to wave at these issues, but only 20% of manufacturers can scale it.
And it’s not for a lack of interest. Most manufacturers are reportedly investigating automation, whether it’s looking at vendors or running the numbers on how automating certain tasks can save them money. According to Redwood Software’s Manufacturing AI and Automation Outlook 2026 report, 98% of manufacturers are exploring or considering AI-driven automation. Only 20% of those manufacturers are actually prepared to scale it.
Intrinsic‘s chief technology officer Brian Gerkey recently told The Neuron Daily’s podcast that robots will simply not work in most factories. Intrinsic, a robotics software firm, was recently folded into Google.
“In the U.S., something like 80% of manufacturing facilities, if you just count them, have no automation at all. The hardware is willing, and the software is weak,” Gerkey told the Neuron: AI Explained podcast.
“The hardware is willing, and the software is weak.”
Brian Gerkey, CTO of Intrinsic
How can manufacturers automate?
Yet automation is an inevitability for most manufacturers.
When I interviewed Rick Faulk, chief executive officer of Locus Robotics and James Taylor, chief commercial officer with OnRobot last year, they both agreed that even small- and medium sized plants can automate some tasks. Because no matter what, worker shortages, customer expectations and rising costs are here to stay.
Taylor told me he thinks the best approach is to start simple.
“In our industry, there tends to be a desire to tackle big things first, and while sometimes that’s appropriate, I think it leads us to overlook a lot of simple things we can do,” he said.
An automation journey, particularly for small plants, might look like adding one robot to perform pick-and-place tasks.
Faulk said it’s riskier for plants to ignore automation.
“I think the real risk in automating is doing nothing while your competitors act and are doing something,” he told me.
You can watch my full interview with Rick and James here:
Why most manufacturers are unable to scale automation
So what’s keeping most manufacturers from automating at least some of their tasks?
The answer? Well, it’s complicated.
AI relies on data, and that data requires a source of truth. But mosts manufacturers’ data is spread out across multiple platforms, including programmable logic controllers and enterprise resource planning software, not to mention spreadsheets and even paper-based records.
AI models run on clean data and a robust data infrastructure, and most manufacturers are simply unprepared for that.
A lack of integration adds to the complexity. Most manufacturers don’t have systems that communicate effectively with each other. Delays, for example, often can’t be communicated across a Computerized Maintenance Management System (CMMS) and an ERP.
And let’s not forget training. Automating systems requires completely overhauling procedures, implementing new workflows and ensuring technicians and others are properly trained in the technology. And that can be a complicated task, particularly for smaller organizations and especially for those plant managers who are resistant to change.
Let us know below. Is your plant automating? Do you have the capabilities to automate? And how do you think it will impact manufacturing?
