AI in the Workplace: What Industrial Leaders Need to Know

Manufacturing and industrial organizations have the data and agility to benefit quickly from AI. But scaling it without disrupting performance isn’t easy.

The global industrial sector has never been slow to adopt new technologies that boost productivity and lead to savings. So it’s no surprise it’s racing ahead to incorporate AI into industrial workplaces.

Many manufacturing and industrial organizations are using AI not just to automate tasks but to anticipate problems before they occur.

“These firms are more likely to think far ahead, linking AI with long-term operational improvements,” says Dave Rossi, president of Korn Ferry’s Global Industrial Market. “That reflects a shift from using AI for quick tactical efficiency gains to strategic value creation.”

Increasingly, industrial organizations are using AI to improve decision-making, predict potential issues, and optimize operations. Typical applications include:

  • Automated visual inspections to detect defects and maintenance needs
  • Predictive maintenance to anticipate equipment failures
  • Production planning and scheduling optimization
  • Supply chain forecasting and disruption risk detection
  • Inventory and logistics management
  • Quality monitoring and bottleneck identification

at a glance

SITUATION

Manufacturing and industrial organizations are rapidly adopting AI to improve operations and anticipate problems before they occur.

CHALLENGE

Legacy systems, siloed data, and regulatory requirements can make scaling AI difficult.

SOLUTION

Use AI's predictive power to spot issues in production, maintenance, and logistics before they affect performance.

One reason industrial and manufacturing can move faster than some sectors is that it already has what AI needs most—data. Decades of collecting information from machines, sensors, maintenance programs, and production systems have created large, consistent datasets that help AI generate reliable insights.

Although industrial and manufacturing firms are more agile than many sectors, AI still presents some unique challenges:

  • In manufacturing environments, errors can disrupt production, compromise safety, or damage expensive equipment.
  • Complex and evolving regulations can slow AI adoption in safety-critical industries, such as aerospace, automotive, energy, and chemicals.
  • While industrial organizations generate vast amounts of operational data, much of it remains siloed across plants, systems, and equipment.
  • Many organizations must integrate AI with decades-old equipment, operational technology (OT), and legacy systems.

So how can large industrial and manufacturing organizations implement AI to enable the workforce while making sure deployment delivers value?

Read our full guide below.

AI in the Workplace Snapshot: Industrial and Manufacturing

Recent Korn Ferry research reveals how turning AI ambition into enterprise-wide ROI remains a major challenge for many industrial and manufacturing organizations today:*

  • 17% of global industrial CEOs and board directors are actively scaling AI across the organization
  • 39% are running pilots across multiple functions
  • 36% said that regulatory risks are the main barrier to AI adoption
  • 10%–20% said they expected to replace almost half of their workforce with AI by 2029

*Korn Ferry CEO & Board Report 2026

Scaling AI Pilots to Drive Performance

A strong pilot is one thing. Scaling AI across the business is a lot harder.

You can’t just layer AI onto existing structures and ways of working. That’s where many organizations get stuck.

Real impact comes when AI becomes part of how the business operates. That means redesigning work and reshaping the organization around new ways of working.

How to Assess Your AI Readiness

Getting AI to work across your business takes more than one change.

Our AI Readiness Diagnostic helps you understand where you are in your AI journey and what may be holding progress back.

It focuses on the areas that help AI move beyond pilots and into everyday work, including:

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    Strategy & Vision

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    Leadership

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    Organization Design

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    Workforce Skills

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    Culture

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    Movement Making

Your results show where you’re ready to scale AI and what to focus on next.

AI Leadership

Leaders set the tone for everything. If they’re unsure about AI, everyone else will be too.

AI-ready leaders bring confidence and clarity from the start. They move fast without being reckless, and they look beyond short pilots to build impact that lasts.

When the work gets difficult, they hold the vision steady.

That means learning as they go and creating an environment where others can do the same.

Organization

“The real ‘aha’ moment is realizing that AI is a way to transform work itself, not simply do the same work faster.”
Shanda Mints, VP, AI Strategy & Transformation, Korn Ferry

Organizations don’t become AI-ready by accident.

It starts with how work is designed. Jobs, roles, and decisions all need to reflect how people and technology come together.

With the right systems and data in place, AI can scale across the organization.

Get the design right, and AI becomes part of how the business runs. Get it wrong, and even the best technology sits unused.

Workforce

An AI-ready workforce has the skills and confidence to use AI in daily work.

People understand when AI removes friction and speeds up work. And they know when human judgment should lead.

They also have clarity on how their roles are changing and where they can grow.

That understanding helps people use AI in ways that improve the work itself.

Culture

“AI transformation moves faster when people and communities learn together.”
Mirka Kowalczuk, AI Strategy & Transformation Leader, Korn Ferry

Culture shapes whether people use AI or avoid it.

In AI-ready cultures, people feel safe to experiment and learn without worrying about getting it wrong. Curiosity is encouraged, and trust builds overtime.

AI becomes something teams use together, rather than something imposed on them.

Explore AI-Ready Culture

Movement Making

AI transformation needs momentum. People need to see what’s changing and why it matters. They also need to see how to start using AI in their own work.

Movement Making is Korn Ferry’s approach to helping organizations build that momentum. It brings together clear communication, visible leadership, and practical support so AI becomes part of everyday work.

That’s how change starts to stick.

Case Study: AI-Aided Industrial Recruitment

A global industrial manufacturing organization needed to hire hundreds of roles across North America, from factory technicians to R&D specialists. But outdated recruitment advertising methods were driving high costs and inconsistent targeting.

As hiring demand accelerated, the organization needed a faster, more precise way to attract qualified talent at scale without disrupting recruiter workflows.

The Approach

Korn Ferry’s RPO team embedded an AI-powered job advertising platform directly into the client’s talent acquisition process. They:

  • Integrated directly with the client’s Applicant Tracking System to support existing recruiter workflows
  • Used real-time performance data to dynamically allocate advertising spend across digital job boards
  • Customized advertising strategies by role type and geography
  • Kept recruiters in the loop, combining AI-driven insights with human oversight

The Impact

The organization significantly improved both hiring efficiency and recruitment performance:

  • Reduced cost-per-applicant by more than 75%
  • AI selected the top 17 job boards with the highest candidate yield
  • Advertising spend shifted to top-performing channels in minutes, instead of weeks
  • Set a new best practice for programmatic AI advertising in high-volume hiring

Why Korn Ferry for Industrial?

No one understands industrial talent like we do. Our expertise spans advanced manufacturing, energy, infrastructure, supply chain, and logistics.

We go beyond hiring to help industrial organizations build high-performing teams—from plant leadership and operations to engineering, digital, and supply chain roles. Our work is informed by real-time market data, reflecting the realities of automation, decarbonization, and global supply chain transformation.

That’s why leading industrial companies trust Korn Ferry to drive performance and sustainable growth.

The Next Stage of AI in Industrial Workplaces

Industrial organizations have lots of high-quality data, but its uses have often been limited and focused. AI is providing the opportunity to put it to work in new ways.

“AI can help with labor-cost reduction, of course, but it has so much more potential than that, including delivering safer, more reliable performance,” says Rossi.

The leaders pulling ahead are using AI to improve how they run factories, maintain equipment, manage supply chains, and respond to operational challenges before they escalate.

Get in Touch

Learn how your organization can capture the value of AI while maintaining safety, reliability, and operational performance.

AI in the Workplace Insights

Our Expert

Dave Rossi

Dave Rossi

President, Global Industrial Market

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July 3, 2026