Artificial intelligence (AI) is rapidly shifting from niche pilot projects to a cornerstone of manufacturing strategy, but a widening skills gap could slow its momentum, according to the inaugural Manufacturing Outlook report from B2B marketplace Xometry.
Drawing on surveys of executives across the U.S., U.K. and Europe, the report found that 82% of manufacturers now view AI as a key driver of growth. That reflects how quickly it has moved from early adoption to full-scale implementation. Once considered experimental technology, AI is now being woven into core operations. From supply chain planning and procurement to quality control and production workflows, it is already cutting errors, reducing cycle times, and lowering costs.
AI in manufacturing
“AI is delivering,” the report states. 44% of manufacturers have seen significant return on investment from their AI projects. That milestone is fueling an aggressive wave of new spending. More than 85% of companies plan to allocate over $100,000 to AI initiatives in 2026 as they move beyond pilots to enterprise-wide deployment.
Xometry said this surge reflects a broader shift in the U.S., where AI is evolving from a buzzword into a practical business driver. Companies that once viewed AI as optional are now treating it as essential to competing in an industry under pressure from volatile supply chains, rising costs and tightening delivery windows.
However, the report warned that a shortage of skilled workers is threatening to slow this progress. 44% of companies identified workforce constraints as a major obstacle to faster AI-driven innovation. And the overall share of manufacturers struggling to find qualified employees has climbed from 56% in October 2023 to 68% in August 2025.
Xometry cautioned that while AI can help address some labor shortages, its rapid expansion could also create new gaps if companies lack the people to manage and maintain these systems. The report urges manufacturers to treat AI as a tool to empower — not replace — employees, pairing investment in their existing workforce with efforts to build new talent pipelines through trade schools and professional societies.
Importantly, Xometry said employees “shouldn’t have to be coders to use AI tools.” Companies can accelerate adoption, the report noted, by deploying flexible, AI-enabled platforms that do not require extensive in-house coding expertise. That would allow more workers to apply AI and help manufacturers fully capture their potential.
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