This weekly update explores how artificial intelligence is transforming the manufacturing industry around the world. The news shows both exciting progress and important challenges that factories must solve.

## Manufacturing Companies Face Skills Challenge

A major new study has revealed that manufacturing companies are investing heavily in AI, but many are not ready for it. The research from IFS, a company that makes industrial AI software, surveyed over 1,700 senior decision makers at manufacturing companies across the globe. The study found something researchers call the "AI Execution Gap". This gap happens when companies start using AI technology faster than their workers can learn how to use it properly.

The numbers tell an interesting story. 90% of manufacturing organizations said they plan to increase how much money they spend on AI in 2025. This shows that almost every factory wants to use smart computer systems. However, 61% of manufacturers said their biggest worry is finding workers who have the right AI skills. Another 58% admitted their organization does not have a clear strategy for how to use AI. This means more than half of these companies are buying AI technology without a solid plan.

## AI Already Delivering Results

Despite these challenges, AI is already helping manufacturing companies make more money. The study found that 90% of organizations said AI has already improved their profitability. This means AI is helping them earn more and spend less. Even more impressive, 67% of companies said AI is generating up to 25% more return on investment than they expected. This means AI is working even better than they hoped.

Many companies are planning to make big changes. The study found that 60% of manufacturing organizations expect to be "AI-First" within one year. Being "AI-First" means the company will use AI for most of its important decisions and operations. Additionally, 75% of manufacturers believe their companies should help create AI rules and regulations. This shows they want to be involved in how governments control AI use. To prepare for this AI future, 51% of companies plan to hire a Head of AI within the next 12 months.

## Chip Manufacturing Breakthrough in America

Important progress happened in the United States for making the computer chips that power AI systems. Nvidia, the world's leading maker of semiconductors, announced a historic achievement. Working with Taiwan Semiconductor Manufacturing Company (TSMC), they made the first Blackwell wafer in the United States. A wafer is the base material used to make advanced AI chips. These chips are what make AI systems work in factories and other places.

Jensen Huang, the CEO of Nvidia, said this was the beginning of a new "industrial revolution" powered by AI. He explained that over the next three to four years, about $500 billion worth of AI supercomputing technology could be manufactured and installed in the United States. This is a huge amount of technology that will help American factories become smarter and more automated.

## What Americans Think About AI in Manufacturing

A survey looked at how Americans feel about AI and robots in manufacturing. The results show that people have mixed feelings, but many see good possibilities. 44% of survey respondents expect robotics to bring more manufacturing back to American soil. This means nearly half of Americans believe that robots and AI can help make products in their own country instead of overseas.

This positive view makes sense when you consider that AI and robots can work 24 hours a day without getting tired. They can also do dangerous or repetitive jobs that humans might not want to do. However, people also worry about jobs. As factories become more automated, some traditional jobs might disappear, while new jobs working with robots and AI systems will be created.

## Scientific Breakthrough for Better Chips

Scientists at Purdue University made an important discovery that will help make better computer chips. They created a system called RAPTOR that uses AI and special X-ray imaging to find tiny mistakes inside chips. This system can spot defects with 97.6% accuracy, which is much better than old methods. This is important because even tiny mistakes in chips can make them stop working.

RAPTOR checks chips without breaking them, and it works automatically. This means factories can make sure every chip is perfect before it leaves the factory. Since these chips power the AI systems used in manufacturing, having perfect chips means more reliable AI systems in factories.

## The Path Forward

The research shows that manufacturing is going through a big change. Companies know AI is valuable and are seeing good results. However, they need to help their workers learn new skills to work alongside AI systems. As one expert explained, "AI is a core driver of business performance" and companies need to "bring people, process and product together". The next year will be very important as companies that solve the skills challenge will become the leaders in manufacturing.