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How AI is Transforming Manufacturing

Insights from the 11th Annual State of Smart Manufacturing report show thoughtful digital transformation now drives business impact.

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MLP Advanced robot arm system for digital industry and factory robotic technology. Automation manufacturing robot controlled by industry engineering using IOT software connected to internet network.

Manufacturers are under more pressure than ever before whether from rising costs, workforce constraints, cybersecurity threats, or ongoing supply chain volatility. The 11th Annual State of Smart Manufacturing report makes one reality clear: this is no longer a moment defined by experimentation. It’s an execution era. Across industries and geographies, manufacturers are now focused on how to build process intelligence at scale.

For many, implementing artificial intelligence (AI) is at the core of this shift. Digital transformation is now embedded into daily operations and supporting decision makers with improving quality, optimizing operations, and reducing risk. In fact, respondents in the 2026 report cite AI and machine learning as the top drivers of business outcomes, surpassing every other smart manufacturing capability.

The question facing manufacturers today is not whether to use AI, but how to deploy it responsibly, securely, and at scale. How can organizations best turn insight into action and deliver sustained performance?

State of Smart Manufacturing Report
State of Smart Manufacturing Report
State of Smart Manufacturing Report
Download this free report for the latest research about how leading manufacturers are harnessing smart manufacturing technology and how you can too.

Entering The Execution Era

For years, AI in manufacturing was largely confined to proof‑of‑concepts and closed systems. That phase is now ending, and the shift has been decisive. Manufacturers are quickly moving beyond experimentation and embedding AI directly into operational workflows.

In 2026, more than one third of operations are already augmented with AI, and that figure is expected to surpass 50 percent by the end of the decade.

Organizations that can reliably scale AI across operations and daily decision-making will move beyond fragmented data, siloed systems, and disconnected technologies to help protect against external threats while optimizing their own production processes.

This transition reflects a broader evolution in digital transformation. Manufacturers are no longer asking whether AI works; they are focused on how quickly and consistently it can deliver value.

AI in Action

As manufacturers move from pilot programs to production‑scale deployment, AI is proving its value as part of everyday execution. The State of Smart Manufacturing findings show that leading organizations are applying AI across quality, operations, and risk functions to help teams act faster and with greater confidence.

One example comes from the Eastern Municipal Water District (EMWD), California’s sixth‑largest water agency, which applied AI and machine learning to improve performance in one of wastewater treatment’s most complex and energy‑intensive processes: aeration.

Aeration performance changes constantly as flow rates and ammonia loads fluctuate throughout the day. Traditional, rule‑based control systems struggle to keep pace, requiring frequent manual intervention from operators. Working with Rockwell Automation, EMWD piloted an AI‑enabled control system that continuously monitors operating conditions and automatically adjusts control responses as conditions change. Rather than reacting after performance drifts, the system anticipates demand and optimizes airflow in real time.

The results were immediate and measurable. EMWD reduced airflow to the aeration basin by as much as 31 percent, lowering energy consumption while improving quality and reducing chemical use. Most importantly, the AI solution integrates directly into the existing system, making it repeatable and scalable for future use cases.

Empowering People

Manufacturing operations generate more data than ever before. Sensors, drives, machines, and control systems generate data throughout the production process. And still, the State of Smart Manufacturing report reveals that only 43 percent of collected data is used effectively. To win, we must improve the usability of collected data.

So, how do we close that gap? And how do we deliver the right data to the right people in real time?

Contextualized data, delivered securely to the right people, makes for better, faster decisions. AI becomes a force multiplier on the plant floor, in operations centers, and throughout organizations. Teams can now focus less on interpreting complex data and more time on improving outcomes.

Yet trust is crucial. As manufacturers increasingly rely on AI-driven insights, we need to know that the data and underlying systems are truly reliable so that shared intelligence removes uncertainty.

AI does not replace human decision-making in leading manufacturing organizations, it strengthens it. By pairing expert human judgement with real-time data insights, manufacturers are enabling more agile, informed, and resilient operations.

In the execution era, organizations that treat intelligence as a shared resource have a competitive advantage.

Manufacturing for the Future

The State of Smart Manufacturing Report makes clear that AI has moved into the core of modern manufacturing operations. For leading organizations, AI is built into how decisions are made, how work gets done, and how performance improves over time.

Execution separates impact from ambition, and manufacturers realize the need for connected, interoperable systems to turn data into day-to-day operation capability.

Equally important, AI only delivers results when it supports the people closest to the work. When teams receive timely, contextual information they trust, they act faster and with greater consistency. Problems surface earlier and people move from reactive to proactive.

The execution era rewards manufacturers who treat intelligence as carefully designed, broadly accessible infrastructure, embedded into everyday work. Those companies do not chase AI trends. They put intelligence to work, consistently and at scale.

The findings in this blog are from our 11th annual State of Smart Manufacturing Report. This yearly publication provides benchmark data, best practices, and key insights from manufacturers at all stages of digital transformation worldwide. Please visit rok.auto/sosm to download the full report.

Published June 23, 2026

Topics: Accelerate Digital Transformation Empower People Build Resilience Optimize Production Artificial intelligence Digital Transformation

Scott Wooldridge
Scott Wooldridge
President, Asia Pacific, Rockwell Automation
Scott Wooldridge is president for Asia Pacific. Scott leads the execution of the company's strategy to bring the Connected Enterprise to life, combining our technology and domain expertise to deliver positive business outcomes for our customers. Scott works with his regional leadership team to implement the Asia Pacific growth initiatives and organizational development plans to meet our long-term objectives.
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