Walk into any manufacturing conference in Europe right now and you’ll hear the same word in every other sentence. AI. Everyone is talking about it, and everyone is hypothesizing how it’s going to change the game. The reality is, both adoption and genuine outcomes are lagging.
The gap between the belief that AI tools are going to give manufacturers an edge and what’s actually happening is enormous. Recently, Deloitte’s 2025 Smart Manufacturing Survey of 600 executives found that while 92% of manufacturing leaders say AI will define competitiveness, only 13.5% of EU enterprises have actually adopted any form of it. That gap is difficult to ignore.
I visit 60-70 factories globally each year, and spend a lot of time with the leaders of our industry. Manufacturing operations across Europe have been under pressure for years, from rising energy costs to labor shortages to supply chains that are still struggling post-Covid. So perhaps AI is the great savior, but if that is to be the case then the approach to AI needs to change.
There’s a lot of debate as to why genuine outcomes for the manufacturing industry via AI is lagging. I put to you that we might be starting in the wrong place.
I encourage folks to commence by ask themselves this simple question, “What is the problem I am seeking to solve through the deployment of an AI technology?”
Understanding priorities
When I meet with industry leaders, I’ll often ask them what their top 3 priorities are. The responses are remarkably consistent.
The health and safety of every employee is always listed as the number 1 priority. Every person must return home at the end of the day in the same bill of health as they started it.
Number 2 is more often than not, that quality of the product produced is of the highest standard, and closely linked to this, that the relationship with all customers is top notch.
Number 3…well…we must be viable, we have to make money. One of the core pillars linked to this priority is producing product as efficiently as possible.
So, while the top priorities are not surprising to me, what does often surprise me is how little time manufacturing executives actually spend on priority number 3, especially given they can have such a significant influence on it! This, I have found, is often not well understood.
It starts at the top
I commenced my career at the Visy Industries, the world’s largest privately owned packaging and recycling company where company founder, the late Richard Pratt, was known for turning up to one of his manufacturing facilities early unannounced and making a beeline for the factory floor where he would engage in open conversation with frontline production workers. They adored him, and the feeling was mutual.
These moments built trust, created real-time insights, and helped drive the world’s best operational efficiency. Today, such interactions are less common, not because leaders don’t care, but because the demands of modern business have changed. Executives often rely on broad KPIs or second-hand reports, unintentionally creating blind spots that can impact efficiency, innovation and morale.
Meanwhile, those on the shop floor experience the daily realities of production firsthand – equipment breakdowns, process inefficiencies, and small frustrations that, if left unaddressed, can accumulate into major business costs.
So here we might have a meaningful problem that AI can help to solve.
If we can combine data captured in real time from across the operations, engage at the human level on the shop floor for additional context and insight, and then deliver an AI solution that allows leaders to access and engage at new levels then we might just be onto something that can make a meaningful impact on a top 3 priority.
More questions leads to more answers which leads to more questions
I do not see a lot of evidence of Richard Pratt style shop floor engagement in my travels. In fact, quite the opposite, I observe senior manufacturing leaders spending too much time in the office and not nearly enough time in operations where their impact can be profound.
I believe AI can help foster a new generation of connected leaders just like Richard Pratt.
Picture this.
Sally, the CEO of a food manufacturing business arrives at one of her confectionary manufacturing facilities and prior to entering the site she opens up an AI application and asks, “I am about to meet with Tim the site leader, what are the top operational priorities I should be speaking to him about. Also provide me with 1 operational improvement that has occurred since my last visit here in January, and 1 area for improvement.”
Sally is instantly presented with information and insights that leads to a very productive conversation with Site Manager Tim.
However, prior to entering the site Sally entered one more prompt.
“Who is working on Lines 1, 2, and 3 today, and what challenges have they been facing recently?” Now, Sally is armed with specific details on the experiences of frontline employees she will meet when she does a factory walk.
Sally no longer enters the site with lagging information, or a surface -level understanding of the current state. So, after her meeting with Tim, Sally puts on her PPE and heads out to the factory floor. Instead of just shaking hands and exchanging pleasantries, Sally is set to engage in meaningful discussions. Sally approaches Terry, who works on Line 1, and says, “I understand you’ve been dealing with recurring issues on the flow wrapper. How has that been impacting your work, and do you have any suggestions for improvement?”
This small shift, from a general check-in to a targeted conversation, changes everything.
When employees know that leadership is not only listening but actively working to solve problems, engagement shifts. It shows that leadership is informed, engaged, and willing to listen. But more importantly, it turns insights into action.
With the emergence of AI, Sally can immediately quantify the financial impact of Terry’s issue, asking, “What has the cost of downtime been on Line 1 due to this problem over the past month? Could there be a business case for investment?”
Now, a conversation that started on the factory floor moves seamlessly into a strategic discussion in the boardroom. Instead of decision-makers relying solely on high-level, often lagging reports, they have real, data-driven context from the people who experience these issues first-hand.
The future of manufacturing
The future of manufacturing isn’t just about emerging new technology. My personal belief is that the humble human being still has a critical role to play when ensuring a top 3 priority of every manufacturer is met.
There must be a focus on increasing the number of eyeballs up and down the chain who have access to insights information in real time, and use that information to engage in meaningful human to human conversation.
The demands on executives are higher than ever, but the tools at their disposal are more powerful, too. With the right mindset and technology, we can create a manufacturing culture that is more connected, more innovative and more competitive – both in Europe and globally.
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