IFS Industrial Index 2026 reveals the factory floor is surging ahead in AI usage leading to 90% gains in reliability and performance

IFS Unleashed, Orlando, FL – 13 October, 2026 – IFS, the leading provider of Industrial AI software, today launched new research revealing a significant divide between frontline execution and C-suite strategy in industrial AI usage. According to the IFS Industrial Index 2026*, which surveyed over 2,200 senior decision makers from across 14 countries, operational workers are driving real-world AI implementation and delivering tangible, commercial value. Meanwhile, formal AI governance frameworks and data access structures are not keeping pace.

The operational impact: 50% employee time freed, direct savings across departments

When frontline teams – engineers, plant managers, service leads, logistics managers – connect their domain expertise and operational data with Industrial AI, the business impact is immediate. Rapid adoption on the floor is delivering direct commercial returns in savings across key operational areas, despite solutions not currently being used to the fullest. Over 90% of global organizations report significant gains in reliability and performance:

• 93% improvement in first-time-right performance
• 90% increase in asset availability
• 88% improvement in on-time delivery schedule adherence

Removing operational friction also frees employee capacity. With over 50% of employee time saved across key workflow areas like production throughput and quality assurance, companies are repurposing workforce capacity toward higher-value initiatives:

• 36% prioritizing workforce safety, training and operational compliance
• 35% optimizing asset performance and reliability
• 26% accelerating continuous process improvement
• 25% growing overall market share

The knowledge impact: 43% training agentic digital workers, 37% upskilling humans

Factory floor teams are pushing ahead as they know the operational problems that need to be solved, recognizing that the answers already lie in their institutional knowledge and operational data.

The data reveals that frontline workers are taking workforce transformation into their own hands:

• 43% have trained and introduced agentic digital workers into their day-to-day operations over the past 12 months
• 37% have upskilled peers to use industrial AI tools in everyday operations
• 36% have directly trained staff to collaborate with digital workers

 In contrast, executive leadership’s primary AI effort over the same period was upskilling management to improve their own AI literacy (41%), directing attention inward rather than enabling the floor. While 27% of respondents view AI literacy as the first vital step for organizational readiness, ground-level execution is moving regardless, leaving leadership confidence (30%) as one of the biggest operational barriers to scaling success. 

Cathie Hall, Chief Product & Customer Officer at IFS, commented: “The factory floor is moving at full speed. Workers see the operational insights, know their data better than anyone, and they know they need industrial-grade AI solutions to turn that expertise into action. The real challenge for leadership isn't driving adoption, it's having the insights to clear legacy roadblocks and delivering the secure industrial harness, data pipelines, and governance required to scale these wins safely and globally." 

The AI governance conundrum: confidence on paper masks critical control gaps 

While floor-level initiative proves demand for intelligent tools, the disconnect between perceived readiness and actual operational safeguards creates potentially dangerous exposure. Despite over 70% of organizations claiming confidence in their safety and data policies, critical controls are missing where they matter most:

• Only 11% have validated AI outputs for safety-, quality-, or mission-critical processes
• Only 11% have established control mechanisms for AI use with sensitive or export-controlled data
• Only 4% have implemented mandatory human oversight or approval requirements for AI-supported decisions
• Only 20% have embedded Industrial AI into supply chain management or maintenance planning (MRO) - the functions where operational failures carry the highest consequences

In industrial operations, this gap between confidence and control is an operational liability. Agentic AI at scale without robust safety frameworks and decision oversight creates compounding risk: unvalidated outputs in mission-critical processes, uncontrolled data exposure, decisions without human accountability.

Cathie Hall concluded: "Industrial operations are defined by speed and consequences. Every decision, every asset, every second compound. To compete, leadership must match the frontline's pace. That means having Industrial AI at the heart of operations to support rapidly scaling agentic AI, enabling the safety, governance, and data controls that make rapid decision-making trustworthy and operationally sound. Companies that move now will compress decision cycles and extend competitive advantages. Leadership cannot afford to lag." 

Learn more about IFS Intelligence here: https://www.ifs.com/en/products/ai/ifs-intelligence/

About the research
The IFS Industrial Index surveyed 2,275 executive leaders and frontline workers aged 18–65 across Australia, Denmark, Finland, Germany, Japan, the Netherlands, New Zealand, Norway, Saudi Arabia, Sweden, the UAE, the UK and the US. 

Respondents were drawn from organizations with more than 500 employees and annual revenue exceeding $250 million, across the following industries: manufacturing, aerospace & defence, energy & utilities, construction & engineering, transportation and telecoms. 

Fieldwork was conducted online by Censuswide between 17 August and 3 September. 

About IFS
IFS is the world’s leading provider of Industrial AI for hardcore businesses that service, power and protect our planet. Our technology enables businesses which manufacture goods, maintain complex assets, and manage service-focused operations to unlock the transformative power of Industrial AI™ to enhance productivity, efficiency, and sustainability. 

IFS’s AI-powered platform is fully composable, designed for ultimate flexibility and adaptability to a customer’s specific requirements and business evolution. IFS technology leverages AI, machine learning, real-time data and analytics to empower our customers to make informed strategic decisions and excel at their Moment of Service™. 

IFS was founded in 1983 by five university friends who pitched a tent outside our first customer site to ensure they would be available 24/7 and the needs of the customer would come first. Since then, IFS has grown into a global leader with over 7,000 employees in 80 countries. Driven by those foundational values of agility, customer-centricity, and trust, IFS is recognized worldwide for delivering value and supporting strategic transformations. We are the most recommended supplier in our sector.

IFS Press Contacts:
EUROPE / MEA / APJ: Adam Gillbe
IFS, Director of Corporate & Executive Communications
Email: adam.gillbe@ifs.com

NORTH AMERICA / LATAM: Mairi Morgan
IFS, Director of Corporate & Executive Communications
Email: mairi.morgan@ifs.com