Industrial AI gains momentum, but the road to transformation is complex

The McKinsey report “The State of AI in 2025,” published a few weeks ago, is now followed by the ZVEI survey on industrial AI, conducted by the Civey Institute. Taken together, the latest findings paint a nuanced but fundamentally optimistic picture for industry decision-makers: The path to broad industrial transformation through AI has begun – but it is challenging and requires more than pure technology investments.

The State of AI Report shows that 88 percent of the companies surveyed use AI in at least one business function – a significant increase over the previous year. However, according to the study, the transition from isolated pilot projects to company-wide, scalable applications has so far rarely been successful. Only around a third of companies report that they have rolled out their AI programs on a larger scale.

“High performers” achieve real impact

Companies classified as “high performers” in the McKinsey report are particularly successful in achieving real impact. They do so by establishing proven management practices: clear strategy, appropriate processes for validating and integrating AI results, investment in data and infrastructure, agile organizational models, and embedding AI in ongoing workflows. In these companies, it is not uncommon for more than 20 percent of the digital budget to be spent on AI – and they are almost three times as likely to be successful in transforming workflows.

Gap between potential and actual benefits

For many companies, however, AI has so far not gone beyond being a complementary tool that brings selective efficiency gains. Only a few AI users consistently achieve measurable business value. This gap between potential and actual benefits is sometimes referred to as the “GenAI divide.”

More than 20 percent of investments to go to industrial AI

The latest ZVEI-Civey survey of German industrial companies with existing AI applications, published on November 24 this year, shows that this gap between potential and actual benefits is an important issue in German industry and that solutions are being sought. Around 20 percent of the companies surveyed have already integrated industrial AI into production and value creation. More than two-thirds of these companies expect AI to significantly increase their competitiveness over the next five years. And among these companies, one in four plans to invest more than 20 percent of its total investment in industrial AI in the future. This clear willingness to invest signals that the use of AI is no longer considered an experiment, but rather a strategic priority for maintaining and expanding competitiveness.

Ensuring that the added value of AI is not wasted

However, the transition from pilot projects to standardized production processes – a hurdle often highlighted in technical reports – continues to pose a challenge in the current reports. While only a minority have already fully scaled AI projects, many companies continue to face the challenge of adequately establishing management structures, data infrastructures, and change processes. The experiences from the State of AI Report show that without clear governance, responsibilities, and validation processes, the added value of AI can easily be squandered.

Use AI strategically and with clearly defined goals

Decision-makers in industry can conclude from the analysis of the current reports that those who view AI only as an additional technical tool are unlikely to generate sustainable efficiency or innovation momentum. On the other hand, those who strategically combine AI with clearly defined goals such as innovation, growth, and efficiency, as well as organizational integration, data management, and the transformation of existing processes, can create real value. The ZVEI results show that German mechanical engineering and the manufacturing industry in particular increasingly share this insight – and are prepared to invest accordingly.

“That gives us cause for optimism.”

As a result, the current combination of growing willingness to invest and increasing experience in the industrial application of AI is a rare opportunity: it can help to link existing industrial strengths with modern digitalization and remain competitive in the global marketplace. "Our companies not only see the immense potential of industrial AI, they are already putting it to good use. That gives us cause for optimism,“ sums up ZVEI President Dr. Gunther Kegel, adding: ”AI, software, and data are the drivers of future value creation. More companies need to rise to this challenge if they want to continue to play a leading role in global competition."