Redwood Software Report Finds 98% of Manufacturers Exploring AI but Only 20% Ready for Scale

Jan 27, 2026
A new study by Redwood Software shows that while nearly all manufacturers are exploring AI automation, only one in five feel fully prepared to implement it at scale. The findings highlight widespread fragmentation across workflows and data systems.

Redwood Software announced in a press release its global study on AI and automation readiness in manufacturing for 2026. The research, based on a survey of 300 manufacturing professionals, found that 98% of manufacturers are exploring AI-driven automation, but only 20% consider themselves fully prepared to use it at scale.

According to the report, most manufacturers remain in a mid-level stage of automation maturity. While many have automated individual systems across operational, engineering, and IT technologies, critical workflows, data flows, and exception management processes remain fragmented and largely manual.

Key findings show that 70% of manufacturers have automated half or less of their core operations, and 78% have automated under half of their critical data transfers, limiting real-time decision-making. Only 40% have automated exception management, despite identifying it as a major source of disruption.

The report notes that automation often stalls at system boundaries where workflows and data must be coordinated across environments. Redwood Software stated that manufacturers using orchestration platforms—such as its RunMyJobs service—are better positioned to integrate these fragmented systems and scale automation as they progress toward AI-driven operations.

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