TCS study says AI to be key driver for margin growth in mfg in 2 years
This story was originally published at 19:18 IST on 3 December 2025
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HYDERABAD - Tata Consultancy Services Ltd. said global manufacturers are rapidly shifting toward intelligence-driven and increasingly autonomous operations, with artificial intelligence set to become a major source of profitability over the next two years.
TCS' Future-Ready Manufacturing Study 2025, done in partnership with Amazon Web Services, shows 75% of manufacturers expect artificial intelligence to be among the top three contributors to operating margins by 2026, the company said in a press release. Among the participants, 21% says they are fully AI-ready, but finds foundational gaps in data, integration, and system readiness across plants and supply chains.
The study is based on responses from 216 senior leaders across North America and Europe. These responses, representing automotive, industrial machinery, aerospace and defence, process industries, chemicals, and heavy equipment, shows rising adoption of agentic AI for autonomous decision-making, with 74% expecting AI agents to handle 11-50% of routine production decisions by 2028.
Nearly 90% anticipate a deeper human–AI collaboration on the factory floor as adoption scales, while 67% report improved real-time supply-chain visibility and more than 30% foresee meaningful productivity gains from AI-led modernisation.
TCS said these trends point to AI emerging as a key driver of manufacturing efficiency, resilience and margin expansion in the coming years. The company said 40% participants reported measurable early gains by embedding AI-driven quality and planning use cases. On Wednesday, TCS shares ended at INR 3,180 on the National Stock Exchange, up 1.4% from their previous close. End
Reported by Narayana Krishna
Edited by Akul Nishant Akhoury
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