A new report from Rockwell Automation signals a critical turning point in industrial transformation. In the latest ‘State of Smart Manufacturing Report,’ global leaders stressed that the convergence of human expertise and advanced technology is defining the future of industry. Momentum is building fast, with 56 percent of manufacturers piloting smart manufacturing, 20 percent have scaled it, and another 20 percent plan to invest.
Rockwell reported that cybersecurity risks are a major, ever-present obstacle and a vital skill for future hiring and use cases, and ranked third in the biggest obstacles to growth in the next 12 months. More than a third of respondents identified strengthening IT/OT (operational technology) architecture security as part of their plan to drive positive business outcomes over the next five years. It also noted that cybersecurity jumped to the second position for external risk, reflecting growing awareness of threats to IT and OT networks from the increasing interconnectivity of digital and physical infrastructure.
The report also tracks sharp shifts in priorities. Investments in generative and causal AI (artificial intelligence) have grown by 12 percent. Efficiency-driven sustainability efforts have climbed 14 percent. Analytical and AI skills are becoming more essential for leadership, rising in importance by 5 percent.
Additionally, as AI continues to expand, so do the opportunities for cyber attacks. Compared to previous survey results, the report mentioned that more organizations are planning to use AI/ML for cybersecurity in the next 12 months, highlighting the evolving role of advanced technologies in enhancing cybersecurity measures. AI/ML are also poised to transform supply chain management, with a third of respondents planning to use them for managing their supply chain.
“In the next 12 months, AI and machine learning will shape quality control, cybersecurity, and process optimization, ensuring we can take full advantage of accurate, timely data,” Blake Moret, chairman and CEO at Rockwell Automation, wrote in the report. “Together, with knowledge and innovation, we can move more confidently into the future, simplifying complexity and building companies that are more resilient, agile, and sustainable.”
Addressing the current state of manufacturing, Rockwell said that while improved costs pushed energy out of the top concerns, cybersecurity risks, competition, and workforce challenges joined inflation and economic growth to round out the top challenges to growth in the next 12 months.
Rockwell reported that supply chain disruption is the biggest concern for a fourth of respondents, with mining and pharmaceuticals feeling the most strain. Companies are increasingly focused on reshoring and nearshoring operations to bring production closer to customers, address persistent supply chain challenges, and mitigate the effects of global trade volatility. Emerging technologies and smart manufacturing will be key to more responsive and flexible operations, improving logistics and competitiveness in markets reliant on speed.
Manufacturers increasingly need integrated solutions that bring together automation, AI, and secure architectures across the edge-to-cloud spectrum. These tools are essential to optimize operations, minimize exposure to cyber, compliance, and operational risks, and build the resilience needed to navigate ongoing uncertainty.
Many are realizing that success with AI starts at the foundation—with products built with native AI and supported by professional services teams that can guide strategy, prioritize use cases, and deliver scalable implementation through strong data architecture. To address the labor shortage and skills gap, respondents are using a range of approaches, but AI and automation emerged as the most common strategies, each cited by 41 percent.
Rockwell also identified that organizations are using data collected to enhance security and operational resilience. Thirty-seven percent are using data from technology, processes, and devices for cybersecurity protection, while 29 percent are using these analytics to monitor supply chain risk.
Smart manufacturing technology transformations are increasing the demand for more people with AI and cybersecurity competencies, and manufacturers cite AI as the technology that will have the biggest impact on workforce challenges. Investing in technology allows decision makers to move talented workers to more value-added tasks, increasing production/productivity.
Cybersecurity has climbed to the second-highest external obstacle to growth this year and stands out as a key use case for smart technology, highlighting how complex it has become in an increasingly interconnected world. As digital and physical systems continue to converge, cybersecurity is becoming deeply embedded in smart manufacturing priorities.
Forty-nine percent of manufacturers plan to use artificial intelligence and machine learning for cybersecurity, up from 40 percent in 2024. Thirty-eight percent are leveraging data to enhance cybersecurity protection, compared to 31 percent last year. At the same time, cybersecurity skills and standards are gaining ground in hiring decisions, with 47 percent of respondents calling them extremely important, up from 40 percent in 2024. This shift reinforces the fact that cybersecurity is no longer just a technical issue, but it is a core business competency.
As manufacturers are seeking a blend of skilled people and advanced technology to strengthen their security posture, cybersecurity now ranks among the most essential employee skill sets. Over the next five years, the most critical workforce skills will include a combination of cybersecurity and AI expertise, along with strong problem-solving and critical thinking abilities.
By 2027, Rockwell mentioned that organizations see AI playing a critical role in helping companies drive cost and time savings, and in creating efficiency and streamlining processes. “This year’s results underline significant increases in the role of AI in quality control, cybersecurity, and process optimization. More organizations are planning to use AI/ML for cybersecurity in the next 12 months than in the last survey, highlighting the evolving role of advanced technologies in enhancing cybersecurity measures.”
It added that AI is poised to have a transformative impact on supply chain management, with a third planning to use it for managing their supply chain. These significant increases over the next 12 months are more than a step-change in the attitude of manufacturers toward AI/ML, with a swing to seeing AI/ML as a core of technology strategy.
