A new study from Redwood Software shows that automation has reached a standstill, there are gaps in data readiness, and what sets AI-enabled manufacturers apart.
/PRNewswire/ — Redwood Software™, the leading orchestration platform for autonomous enterprises, today announced its “Manufacturing AI and Automation Outlook 2026“, which is based on a global survey of 300 manufacturing professionals. The data was collected by the independent research company Leger Opinion using a panel.
The study shows an increasing automation gap in the manufacturing industry. While most manufacturers have invested significantly in operational technology (OT), engineering technology (ET) and information technology (IT) automation and are committed to adopting AI, the majority remain at a medium level of automation maturity. Many automate tasks or processes in individual systems while leaving critical workflows, data flows, and exception handling fragmented and manual.
Key findings: Trends in manufacturing 2026
- 98% of manufacturers are exploring or considering using AI-driven automation, but only 20% say they feel fully prepared to deploy it at scale
- Seven out of ten manufacturers have automated 50% or less of their core business processes
- 60% say automation has helped them reduce unplanned downtime by at least 26%
- Only 40% have automated exception handling, despite it being described as one of the most disruptive processes
- 78% have automated less than half of their critical data transfers, limiting real-time decision making
- Inventory turnover remains difficult to improve even as automation increases uptime and throughput, highlighting the limitations of siled execution
- Redwood customers are 2.7x more likely to be in medium to high stages of automation maturity
The most important findings from the research
- Automation often reaches system boundaries where workflows and data must be coordinated across different environments
- AI ambitions are widespread, but manual data transfers, script-based automation, and disconnected enterprise resource planning (ERP), manufacturing execution systems (MES), and supply chain systems prevent AI from functioning in a real-time context
- Manufacturers that focus on coordinating workflows, data flows, and exception handling across disparate systems will be better positioned to move past the middle maturity phase and prepare for AI-driven operations
“Manufacturers aren’t failing at automation – they’re just reaching the limits of doing it in isolation,” said Kevin Greene, CEO of Redwood Software. “They have powerful automation in their organizations, but it operates in fragmented workflows that are slowed by friction in handoffs, uncontrolled exceptions, and delayed or unreliable data flows. Even the best AI models and tools cannot scale in such an execution pipeline. A well-coordinated operation, supported by a Service Orchestration and Automation Platform (SOAP) like Redwood’s RunMyJobs, connects these fragmented pieces into one single automation structure so manufacturers can scale automation and AI as they move toward autonomous operations.”
As manufacturers increasingly rely on AI-driven operations, research shows that good coordination enables faster production without sacrificing quality.
Access the report
The “Manufacturing AI and Automation Outlook 2026″ provides detailed benchmarks on automation maturity, AI readiness, operational bottlenecks, and the perception gap between frontline leaders and teams. Download the full report here down.
Information about Redwood Software
Redwood Software is the leading enterprise orchestration platform that drives business transformation at the lowest total cost of ownership. Redwood helps companies intelligently automate and coordinate mission-critical business and IT processes across complex ERP, hybrid cloud, data and new agent-based AI systems. Through its SaaS-first automation frameworks – with AI integrated across the entire automation lifecycle – Redwood accelerates your journey to becoming an autonomous enterprise. With 30 years of experience, trusted by more than 50% of Fortune 50 companies, and a customer-centric culture, Redwood unlocks the human potential in your organization so you can focus on innovation, growth, and the future. For more information, visit www.redwood.com. Follow Redwood Software on LinkedIn, @Redwood Software.
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