1. Labour shortage and physical AI: Persistent labour shortages and rising costs are pushing manufacturing towards adaptive robots and autonomous systems. But physical AI requires fundamentally different governance than software AI — safety, human-machine interaction and real-time decision-making.
2. Pilot-to-scale gap: Manufacturing is among the sectors with the fastest AI cost savings, yet only 6% of companies achieve enterprise-wide EBIT impact. Companies optimise processes rather than reinventing the operating model.
3. OT/IT convergence: The merging of operational technology and IT for AI creates new cybersecurity risks. NIS2 mandates board-level accountability for ICT risk management that most manufacturers have not established.
4. EU Machinery Regulation: From 20 January 2027, the new regulation replaces the current Machinery Directive. AI components in machines fall under new conformity requirements — on top of the EU AI Act.