Rapid adoption of Industrial AI causes ‘AI execution gap’

A quiet revolution is taking place in the field of AI in industry. Industrial AI is rapidly emerging and having a profound impact on core processes. Within a year, its use will increase from 32 to 59 per cent. However, many companies are not yet ready for large-scale implementation, leading to an ‘AI execution gap’. This is according to IFS, a supplier of industrial AI software, based on new global research.

The IFS Invisible Revolution Study 2025 was conducted among more than 1,700 senior decision-makers in industrial companies worldwide. The research shows that companies are rapidly moving from experimental AI applications to AI that is deeply embedded in production, maintenance, supply chain and operational processes. Nevertheless, many companies are not yet ready for large-scale implementation.

This AI execution gap arises because companies are introducing AI faster than their employees can retrain. According to IFS, within a year, the number of companies still in an experimental phase will fall from 24 per cent to just 7 per cent. At the same time, 52 per cent of executives say their management teams do not yet fully understand AI, and 99 per cent of employees worldwide will need to develop new skills to take full advantage of AI in industry.

“The speed of AI adoption is inspiring,” says Kriti Sharma, CEO of IFS Nexus Black. “But the next step is to scale up trust, strategy and talent. We need to bring people, processes and products together to deliver results. It’s time to close the AI execution gap. Industrial AI is a powerful force, and now is the time: those who act quickly now will lead the way in the coming decade.”

Growing AI returns

The research reveals a striking contrast: although AI is already delivering impressive results, most companies are not yet ready to fully scale up the benefits. 53 per cent of respondents admit that their organisation does not yet have a clear AI strategy. At the same time, there are opportunities for companies that embrace AI: 70 per cent report a better return on AI investments than expected. On average, 88 per cent say that AI has already increased profitability: 86 per cent in the Netherlands, rising to 92 per cent in the US and even 94 per cent in Germany.

To remain competitive, companies must invest in training and retraining their employees. More than half of respondents expect that up to 60 per cent of staff will need new skills; a third even believe this applies to the entire workforce.

However, trust remains a major challenge. Only 29 per cent of respondents feel comfortable with AI making strategic decisions independently, while 68 per cent believe that a human should always confirm AI outcomes. Concerns about bias also remain. In the Netherlands, 50 per cent are concerned about this, rising to 63 per cent in the US. On a positive note, 65 per cent are in favour of an independent international regulator to bridge the lack of trust.

Changing business models

According to IFS, Industrial AI is fundamentally changing how companies operate. This form of AI is deeply integrated into core processes: automating maintenance, predicting disruptions, optimising supply chains and applying intelligent decision-making in field service, asset management and production.

And this is already happening: 54 per cent of companies use Robotic Process Automation (RPA), 45 per cent use predictive AI in forecasting, and 35 per cent are experimenting with Agentic AI, which makes independent decisions in workflows. It’s influencing traditional business models: 77 per cent of respondents say that AI is accelerating the transition to servitisation – the shift from product sales to a service-oriented business model.

New era

Sharma: “We are witnessing one of the most profound but underestimated shifts in business. This is a new era in which AI defines how industries create and deliver value. Industrial AI is evolving into real-time decision-making intelligence, automating complex processes, predicting the unexpected and enabling new service-oriented business models. The companies that embrace this are writing the next chapter in industry.”

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