Skip to content
MarketScale
‹ Back to IndustriesIndustrial IoT

73% of mid-market manufacturers are still testing AI, with zero at full deployment

A new survey by Kaufman Rossin highlights that 73% of mid-market manufacturers remain in the AI testing phase, with none having fully deployed AI systems. The main obstacles cited are siloed data and outdated ERP systems that hinder full AI adoption.

This story was produced through MarketScale. See how Industrial IoT teams put it to work with AI Visibility (GEO).

By MarketScale Newsroom · Kaufman RossinAi in ManufacturingDigital TransformationErp Integration
Share
Learn this in 60 seconds

Key facts, context, and what it means, in one minute.

:60
0:001:00
73% of mid-market manufacturers are still testing AI, with zero at full deployment

Key takeaways

01

73% of mid-market manufacturers are still in the AI testing phase.

02

Legacy ERP systems and siloed data are major barriers to AI adoption.

03

No mid-market manufacturers have fully deployed AI as of the survey.

Get featured

Want to get featured in MarketScale Industrial IoT?

Create a free MarketScale workspace and get your company's expertise featured across our Industrial IoT coverage. No credit card, no demo required.

Request an invite

Not one mid-market manufacturing company surveyed has reached full, company-wide AI deployment. That is the headline finding from Kaufman Rossin's State of AI in the Mid-Market report, which polled senior decision-makers across U.S. mid-market firms and was published by Automation World in July 2026. The data is striking in its specificity: 73% of manufacturing respondents remain in the testing phase, and the bottleneck is not ambition but infrastructure.

The data gap manufacturers can't work around

AI tools require clean, connected, accessible data. Mid-market manufacturers, by and large, do not have it. The Kaufman Rossin survey found that only 27% of manufacturing companies have a data warehouse or data lake in place. Across the broader mid-market, that figure is 60%. The gap is not marginal; it is structural.

Siloed data compounds the problem. According to the same research, 45% of manufacturers still operate with data spread across disconnected systems, and none of the manufacturers surveyed use machine learning platforms. Even zooming out to the full mid-market sample, only 16% have reached a fully governed and integrated data state.

Data infrastructure readiness: manufacturers vs. broader mid-market
Kaufman Rossin, State of AI in the Mid-Market (via Automation World, 2026) · © MarketScaleDownload chart

Legacy ERP is the integration wall

Every manufacturer in the Kaufman Rossin research runs on ERP. Those systems are deeply embedded and do not connect easily to modern AI tooling. The report identifies legacy integration as the top barrier to AI adoption in manufacturing, cited by 55% of respondents. The broader mid-market average sits at 41%, meaning manufacturers face a meaningfully higher integration burden than their peers in other sectors.

The issue is not just technical. Industrial companies built competitive advantage on operational expertise and process mastery, not data-driven workflows. Shifting to AI-informed decision-making requires more than a software deployment; it asks leadership to reframe how operational knowledge is generated and used. That cultural layer sits underneath the technical one, and it is harder to address than any integration project.

AI adoption readiness: manufacturers vs. broader mid-market
Kaufman Rossin, State of AI in the Mid-Market (via Automation World, 2026) · © MarketScaleDownload chart

Pilots are real wins, not finished journeys

The wins that manufacturers have captured are genuine but narrow. Process-level time savings, accounts payable automation, individual productivity gains; these outcomes matter, but they live inside workflows that still span disconnected systems. Vera Nieuwland, director of Kaufman Rossin's business consulting services practice, writing in Automation World, described the risk as mistaking a successful pilot for a completed transformation.

Investment appetite is not the constraint. The Kaufman Rossin data shows that 91% of manufacturers plan to increase their AI investment. That momentum is meaningful, but without addressing the underlying data infrastructure, additional spend is more likely to produce more pilots than operational scale.

Three priorities for moving from pilot to production

The Kaufman Rossin analysis, as reported by Automation World, points operations and IT leaders toward three sequenced moves. First, map and connect the data that powers the highest-value work; full enterprise overhauls are not a prerequisite, but targeted integration of the most-used systems is. Second, find the processes where data is already clean enough to prove enterprise-level value, and build outward from those, rather than forcing AI onto fragmented data. Third, treat AI readiness as an organizational shift rather than an IT project, with leadership actively repositioning data as a strategic asset rather than a back-office function.

The sequencing matters. Organizations that skip the data foundation step and move directly to broad AI deployment are the ones generating pilots without scale. Manufacturers that 91% plan to increase AI investment are exactly the organizations that need a clear decision framework before that next budget cycle closes.

What this means for your team

  • Audit your data warehouse and integration status before committing to the next AI platform purchase. The Kaufman Rossin data suggests most mid-market manufacturers are spending ahead of their data readiness.
  • Map your ERP integration gap specifically. With 55% of manufacturers citing legacy integration as their top AI barrier, the integration strategy deserves its own workstream, not just an IT ticket.
  • Identify two or three existing processes where data is already clean and connected, and prioritize AI pilots there. Proving value on solid data is more useful than piloting on fragmented sources.
  • Evaluate whether your AI program has executive sponsorship that treats data governance as a business priority. The cultural shift is the factor most correlated with moving past the testing phase, according to the Kaufman Rossin findings.

Featured companies

Your experts belong here

Every story in MarketScale Industrial IoT starts with a company putting its controls engineers, plant-floor specialists, and integration partners on the record. Buyers are already reading this topic. The only question is whose experts they find.

Plant and controls buyers research deep before contact, and your engineers get to shape that research.

Get your team featuredSee how it works15 minutes, straight to a calendar.

About the author

MarketScale Newsroom
MarketScale NewsroomEditorial Team, MarketScale

The MarketScale Newsroom reports on the companies, technologies, and trends shaping 16 B2B industries. It turns primary sources and expert commentary into clear, useful coverage for the people doing the work.

Follow Industrial IoT Insights

Get new expert content in your inbox.

Industrial IoT: are you visible to AI?

Before they reach out, Industrial IoT buyers ask AI engines which vendors to trust. See how AI describes your company today, and where competitors show up instead.

Free workspace

You just read one Industrial IoT expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your controls engineers, plant-floor specialists, and integration partners into the articles, video, and social content Industrial IoT buyers are searching for. Create a free workspace and see it with your own people. No credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What you get, free

Your own MarketScale Studio workspace
One video edit a month, on us
AI writing, editing, and publishing tools
In-platform coaching to learn the system

More Industrial IoT Insights

Aligned plans Ohio AI campus next to retired Conesville coal plant, with first capacity targeted mid-2026

Aligned plans Ohio AI campus next to retired Conesville coal plant, with first capacity targeted mid-2026

Aligned Data Centers plans a 197-acre, multi-building AI data center campus in Ohio’s Conesville Industrial Park, adjacent to the former AEP Conesville Power Plant. GlobeNewswire says initial capacity is targeted for mid-2026 and that the first data center has a foundational customer.

  • 01GlobeNewswire says Aligned is targeting initial capacity delivery in mid-2026 for the Conesville campus.
  • 02The Conesville siting, next to the retired AEP Conesville Power Plant, is a concrete example of an AI campus placed on a power-adjacent brownfield industrial parcel.

Sep 6, 2026

A Micro LED chipmaker just raised nearly 100 million RMB, and lighting specs are getting stricter

A Micro LED chipmaker just raised nearly 100 million RMB, and lighting specs are getting stricter

VIJO (Suzhou) Optoelectronics Technology completed a financing round of nearly 100 million RMB to scale Micro LED optical chip production, according to LEDinside. In parallel, commercial lighting discussions are shifting from LED lifespan to intelligent drivers and smart control integration, as described in a sponsored Electronic Design QuickChat featuring Jameco Electronics and Mean Well USA. A Design World teardown of five 60 W-equivalent LED bulbs shows why operators can’t treat “LED replacement lamps” as interchangeable, with big differences in heat sinking, wiring, and driver topology that directly affect lumen maintenance, dimming, and serviceability.

  • 01Micro LED capacity is being financed now, which matters most for operators writing multi-year display and specialty lighting roadmaps, where qualified supply can become the schedule.
  • 02The teardown signal to carry into procurement is simple: two bulbs can share the same “60 W-equivalent” label while hiding completely different thermal and driver designs, and those differences are what drive field performance.
  • 03Controls and drivers are becoming the spec, not the chip. For projects that must integrate sensors or wireless controls, driver feature sets and thermal derating behavior belong in the submittal checklist.

Sep 2, 2026

Construction robots are starting to roll out like software, and Caterpillar knows the drill

Construction robots are starting to roll out like software, and Caterpillar knows the drill

Caterpillar is applying lessons from autonomous mining deployments to AI-driven construction and jobsite equipment. Meanwhile, Gravis Robotics has raised a $200 million Series A from SoftBank to scale autonomous heavy machinery globally.

  • 01Caterpillar is applying learnings from autonomous mining to its AI deployments in construction sites, quarries, and jobsites.
  • 02Gravis raised $200 million to advance its construction robotics innovations.
  • 03Defense procurement data shows LEO satellite communications like Starshield are being purchased at scale for distributed operations, illustrating why connectivity design matters for remote autonomy programs.

Aug 31, 2026

Explore More Industrial IoT Insights

Read more expert perspectives from across Industrial IoT.

Browse Industrial IoT Hub

About the Expert

MarketScale Newsroom
MarketScale Newsroom

Editorial Team

MarketScale

The MarketScale Newsroom reports on the companies, technologies, and trends shaping 16 B2B industries. It turns primary sources and expert commentary into clear, useful coverage for the people doing the work.

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Industrial IoT and beyond.

Book a 15-minute demo

Or call us. No forms required. We pick up. 214-945-2512