IFS report highlights 'AI execution gap'

The global adoption of Industrial AI is accelerating rapidly, and is set to double from 32% to 59% within 12 months, according to a recent study from IFS, a leading provider of Industrial AI Sofware

However, according to The IFS Invisible Revolution Study 2025*, which surveyed over 1,700 senior decision makers at industrial enterprises globally, organisations are not fully prepared for its full implementation, creating what IFS calls the ‘AI Execution Gap,’ with 52% of senior leaders saying their management teams don’t fully understand AI, and 99% of global workforces requiring major reskilling to scale AI impact.

“AI is a core driver of business performance, it’s time to plug the AI Execution Gap – bring people, process and product together to deliver tangible outcomes,” said Kriti Sharma, CEO, IFS Nexus Black. “The pace of adoption is inspiring, but the next big unlock will come from scaling trust, strategy, and talent. Industrial AI is a powerful force for good, and we’re in a moment of opportunity: those who move fast will lead the next decade of industry.”

More than half of business leaders (53%) admit their organisation still lacks a clear AI strategy, yet the study clearly highlights the benefits available to companies that embrace AI. 70% of businesses report better-than-expected ROI from their AI investments, and on average 88% say AI has already improved profitability. Training and upskilling will be key to ensuring that industrial companies remain relevant.

Despite growing confidence in AI’s potential, there are still issues with trust. Only 29% of global leaders are comfortable allowing AI to make strategic decisions autonomously, while 68% say a human must still confirm or approve AI-generated outputs. Concerns about bias also persist. 65% of global leaders support the creation of an independent, international AI regulatory body to help close the trust gap.

Business model shift

The report highlights how Industrial AI is changing how businesses are run, automating maintenance, predicting disruptions, optimising supply chains, and facilitating intelligent decision-making across field service, asset management, and manufacturing. 54% of global organisations are using automation AI, while 45% are deploying predictive AI. Already, 35% are experimenting with Agentic AI, capable of autonomously executing decisions across workflows. Traditional business models are being influenced by AI with 77% of global leaders saying it is accelerating servitisation, the evolution from product sales to outcome-based services, where businesses deliver uptime, performance, and continuous value instead of just physical goods.

Sharma continued, “Industrial AI is moving into real-time, decision-grade intelligence embedded across the enterprise. It’s already securely automating the complex, predicting the unexpected, and powering new service-led business models. This is about shifting from tasks to transformation, and the organisations who embrace that shift will lead the next industrial chapter.”