Manufacturing Sector Gears Up for AI Maturity, Says New Report by Vultr and 451 Research

Manufacturing Sector Gears Up for AI Maturity, Says New Report by Vultr and 451 Research

A new report from Vultr and 451 Research (part of S&P Global Market Intelligence) reveals that the race toward AI maturity is heating up in the manufacturing industry, with companies striving to leverage AI-driven solutions to gain a competitive edge. The report, titled The New Battleground: Unlocking the Power of AI Maturity with Multi-Model AI, highlights both the challenges and opportunities facing manufacturers as they scale AI from pilot programs to enterprise-wide adoption.

While manufacturers are still working through regulatory complexities and supply chain dependencies, the report suggests that those successfully integrating AI are seeing tangible business benefits. According to the data, 66% of AI-enabled manufacturers outperformed industry peers in 2023, with 83% attributing AI to improvements in key metrics such as revenue growth, market share, and customer satisfaction.

Manufacturers Racing Toward AI Leadership

The research finds that while only one-third of manufacturers have reached the highest level of AI maturity—where AI is deeply embedded across operations—there is optimism within the sector. 59% of respondents believe they will reach this transformational stage within the next two years, opening doors for fast-followers to catch up.

The report signals that manufacturing is currently in a critical growth phase, as companies explore the benefits of deploying multiple AI models to enhance operational efficiency. However, the sector remains more cautious than others, with manufacturers currently deploying an average of 125 AI models, compared to 159 models used in other industries surveyed.

AI Investment on the Rise

To keep up with growing AI demands, manufacturers are ramping up investments in AI infrastructure. The report reveals that 88% of manufacturers plan to increase AI spending over the next year. Additionally, 87% anticipate expanding GPU budgets, with 75% forecasting budget increases of over 10%.

This growing financial commitment reflects the sector’s confidence in AI-powered innovation, as companies look to refine production processes and improve decision-making. Many manufacturers are also shifting AI workloads toward edge computing to enable real-time insights on factory floors, though this introduces new challenges in managing latency and infrastructure.

Multi-Model AI as a Key Metric

The number of AI models deployed serves as an important indicator of an organization’s AI maturity, according to the report. The cautious approach of manufacturers reflects the complex nature of manufacturing operations, which demand precision and reliability. Yet, this presents an opportunity for businesses lagging behind to close the gap by investing in multi-model AI solutions.

The report also highlights that companies with more AI models in production tend to be further along in their AI journeys. With many manufacturers still experimenting at a small scale, the report suggests accelerating AI adoption could unlock significant competitive advantages.

Addressing Challenges with Partnerships and Infrastructure

Scaling AI across the enterprise is not without hurdles. The manufacturing sector faces a unique set of obstacles, including strict regulations, supply chain disruptions, and talent shortages. In addition, the shift toward edge-based AI inference introduces new infrastructure complexities.

To overcome these challenges, the report emphasizes the importance of strategic partnerships with technology providers. Collaborative partnerships offer manufacturers access to cutting-edge tools, expertise, and flexible AI platforms, helping them fast-track their journey toward AI maturity.

The Road to AI Maturity

The findings suggest that manufacturers capable of embedding AI into every facet of their operations will achieve transformational AI maturity—a stage where AI not only improves efficiency but also drives strategic decisions. Companies that act now to adopt multi-model AI solutions and invest in infrastructure will gain a lasting advantage in a competitive market.

“This report is a wake-up call for manufacturers still hesitating to embrace AI,” said a Vultr spokesperson. “With the right strategies and partnerships, companies can accelerate their journey and emerge as AI powerhouses in their industries.”