TCS-AWS Report: AI Set to Redefine Global Manufacturing Margins by 2026

Mumbai/New York: Tata Consultancy Services (TCS), in partnership with Amazon Web Services (AWS), has released the Future-Ready Manufacturing Study 2025, offering a comprehensive view on how global manufacturers are pushing toward AI-driven, autonomous operations — even as foundational readiness gaps persist. The study, based on insights from 216 senior manufacturing executives across North America and Europe, identifies a pivotal shift toward intelligent operations that could reshape margins, supply-chain resilience, and workforce roles over the next three years. Representational Image. Photo by Abet Llacer

According to the report, 75% of surveyed leaders expect artificial intelligence to rank among the top three contributors to operating margins by 2026, signaling a significant reorientation of performance goals toward digital capabilities. Yet despite this optimism, only 21% of respondents consider their organisations fully prepared for AI-centric transformation — underscoring persistent gaps in data quality, legacy integration, and system readiness.

At the core of the study is the notion that manufacturers are advancing rapidly toward intelligence-led operations, but the pace of change remains uneven. The report highlights several key signals shaping the next chapter of manufacturing: AI as a Margin Driver: With three-quarters of leaders expecting AI to be a top contributor to operating margin uplift by 2026, autonomous and predictive technologies are increasingly viewed as essential strategic assets. Agentic AI and Autonomy: A notable 74% anticipate AI agents managing between 11% and 50% of routine production decisions by 2028, indicating a shift toward autonomous workflows.

Real-Time Supply-Chain Visibility: Two-thirds of manufacturers report that AI-enabled insights are strengthening supply-chain transparency and responsiveness — a critical factor amid ongoing global disruptions. In the context of evolving roles, the study also highlights how AI is augmenting the workforce rather than replacing human expertise outright. Nearly 89% of respondents expect AI tools — including robotics and workflows guided by machine intelligence — to support and enhance human productivity across quality, planning, and infrastructure functions.

Looking Ahead

“Manufacturing is an industry defined by precision, reliability, and the relentless pursuit of performance,” said Anupam Singhal, President – Manufacturing, TCS. “Today, that strength of foundation becomes multifold with AI in orchestrating decisions — delivering transformational business outcomes through greater predictability, stability, and control. At TCS, we see this as a defining opportunity to help manufacturers build resilient, adaptive, and future-ready enterprise ecosystems that can thrive in an era of intelligent autonomy.” From AWS’s perspective, the study’s findings reflect broader industry trends toward scaling AI and autonomous operations.