November 5, 2026 77% of Manufacturers Plan to Increase AI Investment

Rootstock’s 2026 State of AI in Manufacturing Survey explores AI-ready ERP and the balance between Agentic AI and human oversight.

San Ramon, Calif. – Rootstock Software (Rootstock) today announced findings from its 2026 State of AI in Manufacturing Survey, revealing that AI is moving further into manufacturers’ everyday operations. Nearly two-thirds of manufacturers (64%) have progressed beyond exploration, with AI initiatives in pilots or already operating, integrated, or broadly supporting business processes. At the same time, 77% plan to increase budgets or resources for AI-powered tools over the next 12–18 months, underscoring continued investment in the next phase of AI adoption.

Among the types of AI being adopted by manufacturers, Agentic AI is gaining traction: 31% of respondents deploying AI say they are already using Agentic AI, which can independently plan and execute tasks with minimal human intervention. Automation remains the most widely deployed form of AI at 52%, followed by Generative AI (49%) and Predictive AI (40%).

“Barriers around AI are evolving. In 2024, skills, integration, and cost were key hurdles. Today, all three have eased, and the top concern is whether AI’s output can be trusted,” said Ohad Idan, VP of Product at Rootstock. “An AI that gets one answer in a thousand wrong can be more dangerous than one that is wrong more often. That’s because people begin to trust AI output and stop checking the results. By the time the mistake shows up in inventory or the books, it’s already expensive.”

Idan added, “The answer isn’t less AI—it’s deploying it responsibly. Today, AI can connect to almost any system to build a more complete view of the business. But when it’s time to act, those actions should run through an enterprise-grade platform with the right permissions, a clear audit trail, and expert-defined business logic for decisions that require consistent, repeatable outcomes.”

Other key findings from Rootstock’s 2026 State of AI in Manufacturing Survey include:

• Unified AI and ERP readiness: 88% see at least some value in a single, unified AI agent across business applications. At the same time, ERP readiness remains mixed: 86% are at least Somewhat Confident their ERP can keep pace with AI-driven changes, but only 43% are Very or Extremely Confident.
• Supply chain disruption is a major AI catalyst: Supply Chain Management ranks as the top technology expected to drive further AI adoption, cited by 46% of manufacturers. Separately, 77% are already using AI, piloting it, or planning investment within the next 12 months to help manage supply chain disruptions and trade uncertainty.
• Manufacturers want AI with human guardrails: 73% prefer either human-directed AI or AI that can operate autonomously within defined limits and escalate when needed, while only 13% prefer fully autonomous AI. Governance is still developing. Employee training is the most common responsible AI practice at 40%, while 25% report not using any of the practices listed in the survey.

For a complete overview of the findings and insights into the evolving role of AI in manufacturing, download Rootstock’s 2026 State of AI in Manufacturing report: https://clouderp.rootstock.com/state-of-ai-in-manufacturing-survey-2026

Methodology
The survey was commissioned by Rootstock Software and conducted by Researchscape. It includes responses from 588 manufacturing professionals at organizations with 100 or more employees across the United States, United Kingdom, and Canada.

About Rootstock
Rootstock Software provides the leading ERP for product companies, empowering manufacturers, wholesalers, and distributors to turbocharge their operations. Natively built on the Salesforce Platform, Rootstock is a modern, future-proof ERP with a fresh user experience. Users appreciate Rootstock’s focus on customer success and its AI capabilities that offer a human-first approach. IT teams value Rootstock’s platform as it minimizes the need to coordinate complex customizations and third-party integrations. All of these factors have contributed to delighted customers. As Rootstock continues to grow, stay tuned to hear about its new customers, career opportunities, and LinkedIn posts.

Subscribe to Industry Today