A new global study by IFS, conducted with 3Gem, has revealed that industrial artificial intelligence (AI) adoption has surged from 32% to 59% within just 12 months. The research highlights what IFS calls an “Invisible Revolution,” where industries are rapidly embedding AI into core operations, moving beyond consumer-focused experimentation.
Despite this momentum, the study warns of a significant “AI Execution Gap.” Organizations are accelerating AI adoption faster than their workforce can adapt, creating challenges in training, trust, and strategy. Nearly all respondents (99%) said their employees will need major reskilling to fully leverage AI’s benefits.
Key findings show that while 88% of enterprises report profitability gains from AI, only 29% trust it to make strategic decisions. A large majority (53%) of business leaders admit their organizations still lack a clear AI strategy, even as 70% report better-than-expected returns from AI investments.
Geographic differences also emerged. Profitability gains reached 92% in the US and 94% in Germany, but trust remains fragile, with only 29% of leaders comfortable with autonomous AI decision-making. Concerns about bias are most acute in the US (63%), compared to 40% in Nordic countries. Encouragingly, 65% of executives favor the creation of an independent international AI regulatory body.
Industrial AI is already reshaping operations. Over half of companies are using automation AI, while 45% deploy predictive AI and 35% experiment with agentic AI, which autonomously executes workflow decisions. This evolution is also accelerating servitization, with 77% of leaders saying AI is driving the shift from selling products to delivering outcome-based services.
Kriti Sharma, CEO of IFS Nexus Black, emphasized the urgency of bridging the execution gap: “AI is a core driver of business performance. The next big unlock will come from scaling trust, strategy, and talent. Industrial AI is a powerful force for good, and those who move fast will lead the next decade of industry.”
The study concludes that industrial AI is no longer a future ambition but a present reality, embedded in frontline operations like maintenance, supply chain optimization, and manufacturing. The next 12 months will be critical, as companies that align people, processes, and technology stand to define the future of industrial leadership.
