94% percent of Asia Pacific manufacturers investing in AI to navigate uncertainty and drive smart manufacturing

• 46% see AI/ML easing labour shortages; 42% use tech to make jobs more engaging
• 94% of APAC manufacturers will invest in AI/ML, including generative & causal AI within 5 years

Rockwell Automation, Inc., a company dedicated to industrial automation and digital transformation, has announced the results of its tenth annual State of Smart Manufacturing Report. The global study, conducted in March 2025, surveyed more than 1,500 manufacturers across 17 leading manufacturing nations, including China, Japan, India, South Korea, Australia, and New Zealand.

As manufacturers continue to face uncertainty driven by economic shifts, the report highlights how companies are turning to smart manufacturing technologies to manage risk, improve performance, and support their workforce. It also examines the adoption of emerging technologies, including artificial intelligence (AI), machine learning (ML), and cloud-based systems.

“We’re seeing strong momentum across Asia Pacific in adopting AI and smart manufacturing technologies – not just as buzzwords, but as mission-critical capabilities to drive quality, agility, and growth,” said Scott Wooldridge, Regional President, Asia Pacific, Rockwell Automation.

“What stands out this year is the region’s tech-first mindset, with nearly half of manufacturers already scaling AI to address workforce gaps, cybersecurity risks, and evolving sustainability targets. The focus has clearly shifted from experimentation to execution,” he added.

Blake Moret, Chairman and CEO of Rockwell Automation, stated: “Today’s technological advancements are unlocking new opportunities where the combined potential of people and technology will shape our collective future. As this year’s report shows, manufacturers worldwide are using smart manufacturing to navigate disruption and create opportunities for speed and agility.”

“At Rockwell, we believe innovation and resilience go hand in hand. With the right technology and the right people, we can simplify complexity and lead with confidence in times of dynamic change,” he added.

Key Asia Pacific (APAC) findings include:

• 94% of APAC manufacturers have invested in or plan to invest in AI/ML and Generative or Causal AI within the next five years.
• 46% believe AI/ML will help address workforce shortages, while 42% are adding or using technology to create more engaging jobs.
• 47% said quality control is the top use case for AI, followed by cybersecurity (44%) and process optimisation (43%).
• 55% are pursuing sustainability primarily to improve operational efficiency – up from 39% last year.
• 95% said cybersecurity practices and standards are moderately to extremely important, but 28% cited lack of leadership awareness or underestimation of cybersecurity threats as a key challenge.

Key global findings include:

• 81% of manufacturers say external and internal pressures are accelerating digital transformation, with cloud/SaaS, AI, cybersecurity, and quality management ranking as the top investment areas.
• 95% have invested in, or plan to invest in, AI/ML over the next five years.
• Investment in generative and causal AI rose 12% year-on-year, showing a shift from experimentation to maturity.
• Cybersecurity is the second biggest external risk, with 49% of manufacturers planning to use AI for cybersecurity in 2025 – up from 40% in 2024.

Quality control remains the top AI use case for the second consecutive year, with 50% planning to apply AI/ML to support product quality in 2025.

Beyond these data points, the report reflects a broader movement towards more efficient and adaptive operations. Manufacturers are deploying smart technologies to strengthen supply chains, accelerate sustainability initiatives, and make faster, more informed decisions.

There has also been a 5% rise in the importance of analytical and AI skills for leaders, showing that talent development and technical innovation must progress in tandem. Still, many manufacturers face challenges when implementing AI. Nearly half of all respondents now rate the ability to apply AI as an extremely important skill – a sharp increase from just 10% last year.

Click here to read the full report can be found here.