Tech Mahindra Report: 99% of Manufacturers Embrace ‘Adaptive Manufacturing’ as AI Becomes Industry’s New Nervous System.

Tech Mahindra’s ‘New Era of Adaptive Manufacturing’ report reveals 99% of manufacturers are adapting to volatility, with 72% deploying AI as the core intelligence layer for resilience & sustainability.


Global Survey of 690 Leaders Finds AI and Sustainability are Now Core to Navigating Disruption and Fragile Supply Chains

Pune, India – September 1, 2025 – Tech Mahindra a leading global technology consulting and digital solutions firm has launched its groundbreaking global research report ‘The New Era of Adaptive Manufacturing’. Based on a survey of 690 senior manufacturing leaders from large enterprises (1,000+ employees) across the Americas, Europe and Asia-Pacific, the report reveals that adaptability, powered by artificial intelligence (AI) is now a non-negotiable imperative for survival and growth.

The comprehensive study provides an in-depth look at how manufacturers are reimagining operations to combat rising costs, supply chain fragility and critical skills shortages by prioritizing intelligence, agility and sustainability across their value chains.

Key Findings from the Report: The Six Pillars of Adaptive Manufacturing

  1. Adaptability is Universal: A staggering 99% of manufacturers confirmed they are actively adapting to changing market conditions, customer expectations, and demand volatility, making agility fundamental to modern operations.
  2. AI as the Central Nervous System: 72% of firms are now deploying AI, establishing it as the core “intelligence layer” of Industry 4.0. It enables real-time decision-making, automation, and the seamless integration of people, machines, and processes.
  3. Generative AI Investment Soars: Nearly two-thirds (62%) of manufacturers have increased spending on generative AI, exploring its application in product design, simulation, and complex problem-solving to move from predictive to proactive intelligence.
  4. AI Bridges the Workforce Gap: 84% of respondents believe AI and automation are critical to addressing workforce shortages and the declining interest in blue-collar roles. AI is seen as a tool for augmenting human capability, enabling reskilling, and facilitating knowledge transfer.
  5. Supply Chain Resilience is a Tech Priority: Only 19% of manufacturers report having highly resilient supply chains. However, those allocating more than 15% of their IT budget to AI demonstrated significantly higher resilience, proving technology’s role in predictive planning.
  6. Sustainability is a Strategic Driver: 98% of firms are implementing sustainable manufacturing practices. AI is increasingly being used to optimize energy and resource consumption, showing that sustainability is a key lever for long-term profitability and efficiency.

Leadership Insight: Building Intelligent, Future-Ready Ecosystems

Manikantan NS, Global Head of the Manufacturing Service Line at Tech Mahindra, stated: “Manufacturers are navigating a complex environment of rising costs, fragile supply chains, and skills shortages. This research report clearly shows that adaptability, powered by AI, is the foundation of resilience and competitiveness. At Tech Mahindra, we are enabling global enterprises to embrace adaptive manufacturing with ROI-led strategies that integrate technology, talent, and sustainability.”

The Path Forward: A Blueprint for the Next Industrial Era

The report positions ‘Adaptive Manufacturing’ as the definitive blueprint for the industry’s future, where success is defined by the integration of intelligent technology and sustainable practices. Tech Mahindra emphasizes its commitment to partnering with enterprises to embed these principles into their core operations, harness AI responsibly, and build ecosystems that can thrive amid constant change.


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