Not long ago, the idea of AI on the factory floor sounded like science fiction. I remember a plant manager joking, “we’ll never see that here,” while pointing at manual assembly lines. Fast forward, and everything’s changed. In a survey two years ago, when asked about AI’s potential, most shared they expected transformative impact within the next five years.
Today, Cisco commissioned the 2026 State of Industrial AI Report a double-blind global survey of more than 1,000 industrial professionals across 19 countries and 21 sectors. Findings show that now, nearly nine in ten expect meaningful outcomes within the next two years (87%), and most organizations are planning to increase AI spending (83%).
Two-thirds of industrial organizations are now actively deploying AI in live operations, driving real change across the industry. AI isn’t just on the horizon anymore; it’s reshaping the way industries work today.
59% of Organizations Have Already Seen Increased Productivity
Here is how I have seen the increase in productivity on the manufacturing floor. I recently met with an automotive customer in Detroit who said that over the past three years, the number of cameras in their plant jumped by 30-40x. Every corner of the facility is now covered with machine vision cameras as they scan parts catching defects in the blink of an eye and keeping the line moving. Quality inspection has evolved; cameras can capture assembly details and spot issues instantly, changing the way the physical world is managed and recorded.
I’ve seen other customers increase productivity through Automated Mobile Robots (AMRs). AMRs glide between workstations, delivering materials exactly when they’re needed, with no waiting or bottlenecks. Over in the control room, sensors on equipment send streams of data to an AI system that analyzes everything in real time and flags issues so teams can fix them quickly. Meanwhile, in the warehouse, inventory checks are handled by a mix of AI-powered cameras, barcode scanners, and RFID tags attached to every product. As items move in and out, these technologies automatically scan and record their locations. All the data is then fed into a central AI system, which spots discrepancies and updates inventory records instantly.
A reliable and high-performance network is the backbone that ties all these technologies together. Any network downtime or latency could disrupt operations. With seamless, secure networking, every device communicates efficiently and ensuring fast response to issues. The network keeps all the moving parts working together, making the whole operation smarter and more efficient.
As they work to boost network performance and reliability, the need for stronger connectivity puts security in the spotlight. That’s why building security into the very foundation of these networks is more important than ever. Security as the foundation: 40% of organizations say cybersecurity is their biggest obstacle to scale AI, but also the biggest enabler, with 85% expecting AI to strengthen their security posture.
Of growing importance, and fast becoming the backbone of this transformation, is reliable wired and wireless networks. In particular, wireless connectivity is now seen as essential for powering the next wave of AI industrial innovation.
Reliable wired/wireless networks: Wireless networking is now essential, with 96% saying it’s a must-have for AI
- 51% need more reliable connectivity
- 44% need greater edge compute capacity
- 42% need greater bandwidth capacity
Across industries, companies are weaving AI and automation into daily routines. And it’s paying off – the State of Industrial AI report shows that:
- 42% have cut costs
- 37% are making faster, smarter decisions thanks to real-time insights
57% of Organizations Report Some Form of IT/OT Collaboration
The real challenge isn’t about trying to turn every engineer into a hybrid IT/OT expert. It’s about building the kinds of teams where everyone brings their own specialty to the table to work together.
Picture a busy automotive plant. OT teams are hands-on, keeping the production line running, fixing conveyor belts, adjusting machinery, and making sure everything operates smoothly. Meanwhile, IT manages the secure flow of images from AI-powered inspection cameras and delivers real-time analysis. The same dynamic plays out in utilities. OT teams manage the grid and respond to emergencies, but it’s IT’s analytics and cybersecurity that keep operations resilient. If that partnership is missing, critical data can go unnoticed, and systems become vulnerable.
Yet many organizations still struggle to bridge the gap between IT and OT. Survey responses show that when this collaboration is missing, businesses miss out on the full potential of AI and automation.
Findings from the survey report underscore this:
- 43% still operate with limited or no collaboration at all
- Almost half (47%) of companies with limited collaboration cite network instability as a top challenge
- 61% of companies are deploying AI, but only 20% have scaled it across their operations
From Readiness to Results: The Path Forward
We’ve seen just how far industrial AI has come, but now it’s time to raise the bar and ask, “what’s next?” The State of Industrial AI Report digs into this question. The findings are clear: it’s not just about smarter machines; it’s about building the right network, protecting data, and making sure worker safety is never left behind.
Think of it like an espresso machine: if the system isn’t properly set up and the internal pipes aren’t clean, you won’t get that balanced brew. The pressure, temperature, and clear lines all have to work in sync. AI is no different. Even the most advanced AI needs a reliable, secure, and well-maintained network to work at its best. If the network isn’t properly set up or maintained, the AI’s results won’t live up to its potential. For a closer look at the state of AI in industrial settings, dive into the full report here: State of Industrial AI Report.
State of Industrial AI Report for EMEA
State of Industrial AI Report for Manufacturing
State of Industrial AI Report for Transportation
State of Industrial AI Report for Utilities
