INTELLIGENT TECHNOLOGY: AI ADOPTION

A quiet shift is transforming the industries that power the world, with Industrial AI adoption to nearly double from 32 % to 59 % within 12 months.

Kriti Sharma, CEO, IFS Nexus Black

The research identifies an‘ Invisible Revolution’: a rapid but under-recognised shift away from consumer productivity AI experimentation and toward embedded, operational AI across core business processes. But as with all revolutions, significant challenges are emerging.

The IFS Invisible Revolution Study 2025, which surveyed over 1,700 senior decision makers at industrial enterprises globally, found that while organisations are adopting AI today, they are not fully prepared for implementation. This has created what IFS calls the‘ AI Execution Gap’.

This gap is being formed as companies move faster into AI adoption than staff are able to upskill. In the next 12 months, the number of companies still in early AI experimentation will fall from 24 % to just 7 %. Yet 52 % of senior leaders say their management teams don’ t fully understand AI and 99 % of workforces globally will require major reskilling.

“ AI is a core driver of business performance, it’ s time to plug the AI Execution Gap – bring people, process and product together to deliver tangible outcomes,” said Kriti Sharma, CEO, IFS Nexus Black.“ The pace of adoption is inspiring, but the next big unlock will come from scaling trust, strategy and talent. Industrial AI is a powerful force for good, and we’ re in a moment of opportunity: those who move fast will lead the next decade of industry.”

Trust is also a hurdle: only 29 % of leaders are comfortable with AI making strategic decisions autonomously, while 68 % insist a human must approve AI outputs. Bias is a top concern for 63 % of US respondents compared to 40 % in the Nordics. Encouragingly, 65 % of leaders back an independent, international AI regulator.

Industrial AI is already reshaping operations, automating maintenance, predicting disruptions and optimising supply chains. 54 % of organisations are using automation AI, 45 % predictive AI and 35 % are experimenting with Agentic AI. Traditional business models are shifting too, with 77 % of leaders saying AI is accelerating servitisation – moving from product sales to outcome-based services.

Kriti Sharma added:“ This is a bold new era where AI is redefining how industries create and deliver value. Industrial AI is moving into real-time, decision-grade intelligence embedded across the enterprise. It’ s already securely automating the complex, predicting the unexpected and powering new service-led business models. This is about shifting from tasks to transformation, and the organisations who embrace that shift will lead the next industrial chapter.”

The research shows strong ROI but lagging readiness. 70 % of businesses report better-than-expected returns from AI, and 88 % say AI has already improved profitability, rising to 92 % in the US and 94 % in Germany. Yet over half of business leaders admit their organisation lacks a clear AI strategy.

IFS says the next 12 months will be decisive as organisations that close the AI Execution Gap now will shape the future of industrial leadership.

Sharma concluded:“ We’ re experiencing one of the most profound and underestimated shifts in global business. Industrial AI is here and already reshaping how entire industries run, compete and grow. The time is now.” p

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