Manufacturers are co-opting AI as an engine for growth and faster decision-making rather than a tool for slashing costs, according to the AI Readiness & Adoption Survey conducted by Cisco in collaboration with The Economic Times.The survey, for which 70 CXOs from manufacturing firms were interviewed, found that meeting customer expectations (49%) and boosting operational efficiency (47%) were the primary forces driving AI adoption. However, cost reduction, often touted as a top reason for AI adoption in enterprises, ranked last at just 23%. Instead of slashing the workforce, manufacturers are chasing real-time data insights (46%) and improving product quality/defect detections (36%) to speed up factory-floor decision-making and overall efficiency.“Rather than isolated automation investments, manufacturers are building intelligent systems where data flows seamlessly between machines, operators, and enterprise applications, enabling real-time decisions, improving worker safety, and driving more sustainable operations at scale,” Himani Agrawal, Chief Operating Officer, Microsoft India and South Asia, told ET. She said manufacturers were moving decisively from experimentation to scaled deployment of AI, with the fastest adoption seen across automotive, industrials, and energy-intensive sectors.“Global industrial leaders like ABB are using AI to unify operational data and enable predictive insights at scale, while Indian enterprises such as the Mahindra Group are applying AI across both customer engagement and core operations,” Agrawal added. “What is also emerging strongly is agentic AI, where systems can reason and act across workflows, enabling manufacturers to move from insights to execution at scale.”German luxury carmaker Mercedes-Benz is using AI and future technologies in every aspect from product development and production to internal processes.ET Special