TCS study: AI to boost manufacturers' margins by 2026

Tata Consultancy Services (TCS), in collaboration with Amazon Web Services (AWS), announced findings from their Future-Ready Manufacturing Study 2025. The study indicates AI will be a key driver for margin gains in manufacturing, with 75% of manufacturers expecting it to be among their top three margin drivers by 2026. However, only 21% currently report being fully AI-ready, highlighting significant foundational gaps.

The study emphasizes the growing role of AI agents, with 74% of manufacturing leaders expecting them to manage 11–50% of routine production decisions by 2028. Agentic AI is emerging as a priority capability for accelerating autonomous decision-making across plants. Furthermore, 67% of respondents reported improved real-time supply-chain visibility, enhancing resilience and responsiveness, and over 30% anticipate meaningful productivity gains from AI-led modernization efforts.

Anupam Singhal, president - manufacturing at TCS, highlighted AI's potential to orchestrate decisions, delivering transformational business outcomes through increased predictability, stability, and control. Ozgur Tohumcu, general manager - automotive and manufacturing at AWS, noted that manufacturers are leveraging AI-powered autonomous operations to shift from manual, reactive processes to intelligent, self-optimizing systems, leading to more resilient and agile operations.