January 15, 2025 82% of Manufacturers Increasing AI Budgets for 2025

Rootstock Software’s 2nd Annual AI in Manufacturing Survey shows year-over-year growth in AI adoption and spending.

San Ramon, CA – Rootstock Software, a recognized leader in the ERP space, today announced findings from its 2nd Annual State of AI in Manufacturing Survey, revealing ongoing momentum for AI adoption within the industry. The survey, based on insights from over 369 manufacturers across the U.S., U.K., and Canada, highlights key trends in AI usage, investment priorities, and the crucial role of ERP solutions. As AI-driven transformations accelerate, 82% of surveyed manufacturers report plans to expand AI budgets over the next 12-18 months, with 23% expecting significant increases of 26-50%.

AI’s increasing role in enhancing efficiency, supply chain resilience, and production capabilities points to a growing recognition of AI’s ability to impact critical operations. “As AI applications mature, manufacturers are turning to ERP solutions to anchor their AI investments, ensuring seamless data flow and actionable insights across their organizations,” said Raj Badarinath, Chief Product & Marketing Officer at Rootstock Software. “This survey reinforces the need for a robust digital infrastructure as AI becomes integral to strategic decision-making in manufacturing.”

Key findings from the 2025 State of AI in Manufacturing Survey include:

• AI Adoption and Usage Trends: The survey shows that over 77% of manufacturers have implemented AI solutions, a rise from 70% in 2023, with applications spanning from production (31%) to inventory management (28%) and customer service (28%)—reflecting AI’s growing role in optimizing day-to-day operations.
• Preference for Copilots: Manufacturing professionals favor “copilots” (53%), which support human roles, rather than fully autonomous agents which could replace human resources. This indicates a strong preference for collaborative AI capabilities that enhance workforce productivity while maintaining human oversight.
• Expanded AI Applications: AI for supply chain management (49%) and big data/analytics (43%) rose as leading drivers for AI investment, highlighting a strategic focus on balancing demand, supply, and production with AI’s predictive capabilities.
• ERP’s Central Role in AI Adoption: ERP solutions remain crucial for successful AI usage, with manufacturers relying on an ERP to contextualize and manage data. However, 56% of manufacturers expressed uncertainty about their ERP systems’ readiness for AI integration, underscoring the ongoing need for ERP modernization.

Despite significant advancements, manufacturers still face obstacles to AI adoption. A lack of internal expertise (45%) and integration challenges with existing systems (44%) remain top barriers. The skills gap is increasingly addressed through training and upskilling (60%), with additional reliance on intuitive AI technologies that help ease the transition (41%).

“We are witnessing a pivotal moment where manufacturers are adopting AI not just as a productivity tool but as a strategic asset,” added Badarinath. “Manufacturers who embrace AI within a strong ERP will be well-positioned to lead in an AI-driven market.”

For a complete overview of survey findings and insights into the future of AI in manufacturing, download Rootstock’s full report:

https://clouderp.rootstock.com/state-of-ai-manufacturing-survey-2025

Methodology 

Conducted in collaboration with Researchscape, the survey included responses from 369 manufacturers in the U.S., U.K., and Canada with 100+ employees. Fielded in October 2024, this survey captures AI trends and projections for the next 12-18 months.

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 delivering a fresh user experience. Customers appreciate that Rootstock prioritizes their success—providing AI-ready decisioning capabilities but with 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 result in delighted Rootstock customers. As the company continues to grow, stay tuned to hear about Rootstock’s new customers, career opportunities, and LinkedIn posts.

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