Manufacturers Push for Smarter AI Policies as Industry Investments Surge
Here's how some manufacturers are already deploying AI technology, and what the broader industry organization is recommending to policymakers
NAM: Manufacturers call for pro-manufacturing AI policies. (Staff photo)
Artificial intelligence is rapidly reshaping the factory floor, and U.S. manufacturers want policymakers to keep pace. A new report from the Manufacturing Leadership Council (MLC)—the digital transformation division of the National Association of Manufacturers—shows that more than half of manufacturers expect to increase their investment in AI over the next two years, and 80% say AI will be essential for growth or survival by 2030.
The report, “Shaping the AI-Powered Factory of the Future,” calls for a comprehensive policy framework to help manufacturers harness AI’s full potential. Industry leaders are urging lawmakers to streamline compliance, support workforce development, and modernize regulations for energy, privacy, and innovation.
“Artificial intelligence isn’t new to manufacturing,” said Jay Timmons, president and CEO of the National Association of Manufacturers. “For years, manufacturers have been using AI to make shop floors smarter and workplaces safer. But to keep innovating, we need agile, pro-manufacturing AI policies.”
Manufacturers are already deploying AI-powered cameras to improve worker safety, running simulations to optimize production, and using data analytics to control costs and manage supply chains. The MLC’s survey found that 51% of manufacturers currently use AI in their operations, and 61% plan to boost investment by 2027.
But the report also highlights hurdles. Sixty-five percent of respondents said they lack the right data for AI applications, and 62% said their data is unstructured or poorly formatted. Workforce readiness is another concern: 82% of manufacturers cite a shortage of AI-ready skills as their top workforce challenge.
“The worldwide competition for AI supremacy is underway, and manufacturers have the opportunity to lead,” said David R. Brousell, MLC founder and executive director. “To win, we need a strong ecosystem of partners and support to create new competitive advantages.”
To address these challenges, the National Association of Manufacturers is recommending policymakers:
- Adopt a pro-AI regulatory approach that recognizes the diversity of AI use cases in manufacturing.
- Support workforce training, STEM education, and immigration to build the AI-ready workforce.
- Advance energy and permitting reforms to support AI data center growth.
- Pass a comprehensive privacy law that preempts state rules and enables responsible innovation.
- Support U.S. manufacturing of AI chips through funding and investment credits.
- Incentivize AI innovation by preserving favorable tax policies.
Industry voices echoed the urgency for action. “AI is proving to be an essential partner on the shop floor, and we must ensure manufacturing employees have the skills they need to build the future,” said Kathy Wengel, board chair at the National Association of Manufacturers and an executive at Johnson & Johnson.
Others pointed to the value of automation and prediction, as well as the need for robust data governance and cross-functional collaboration. “Companies that invest early in strong data governance, smart integration, and collaboration will be better positioned to compete and grow,” said Prasoon Saxena, global co-lead for products industries at NTT DATA.
As manufacturers race to modernize legacy infrastructure and build smarter factories, the call for smarter AI policy solutions rings louder than ever — promising not just greater efficiency and safety, but a future where American manufacturing remains a global leader.
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