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AI Literacy – The New Skill Gap in Manufacturing

Ray Beste

Aug 22 2025

3 min read

Ray Beste, Sikich’s Principal AI Strategist, brings over 35 years of experience guiding organizations through IT-driven technological transformations. He’s seen firsthand how workforce readiness can make or break technology adoption. After reviewing the results of Sikich’s Manufacturing Industry Pulse survey, which revealed that most manufacturers have provided little to no AI training for employees, Ray reflected on what this skill gap means for the industry and why closing it now could create a lasting competitive advantage.

A Competitive Gap Hiding in Plain Sight

The latest Sikich Manufacturing Industry Pulse highlights a striking truth: 76% of manufacturers say fewer than 10% of their employees are training on or using AI. Meanwhile, 84% of executives expect AI to be standard in manufacturing within five years. That’s not just a gap. It’s more like a canyon.

We’re in the early innings of AI adoption. Most companies are still in a “research-only” phase, unsure how to apply AI or lacking the skills to act. As I shared in the report, “The opportunity exists in the gap between exploration and implementation. Companies already using AI in targeted areas like sales and operations are seeing real, measurable gains.”

Technology Without Skills Is a Dead-End

Whether it’s a robotic arm in a power plant, a predictive model on a dashboard or a scheduling AI in an ERP system, these technologies are wasted if the workforce doesn’t understand how to use them. This is why AI training must be treated as a capital investment, not an optional extra. Without it, adoption will stall, ROI will evaporate and competitors will surge ahead.

Closing the Gap: Practical Steps

Manufacturers can take immediate action:

Start with AI basics: Build common language and understanding across the organization.
Train by role: Equip shop floor teams, planners, engineers and executives with AI skills that match their work.
Run cross-functional workshops: Bring IT, operations and production together to explore practical applications.
Include staff in pilots: Hands-on involvement builds both competence and confidence.

The Right Message to the Workforce

The Pulse data shows where AI is already impacting work: sales, marketing and customer service (65%), finance and administration (35%), and process optimization (23%). These aren’t job-killing applications. They’re job-enabling ones. AI reduces manual work, speeds up decisions and opens space for higher-value tasks.

Or, as Jerry Murphy, Principal and manufacturing services leader, put it in the report, “The future isn’t something to brace for—it’s an opportunity to build.” Manufacturers willing to invest in people alongside technology can seize this moment to create a lasting advantage for years to come.

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About the Author

Ray Beste

Commencing his IT career with Sikich in 1989, the birth year of the World Wide Web, Ray has witnessed the evolution of technology from the inception of websites and browsers to the rise of smartphones and social media platforms. The advent of AI technologies, particularly Generative AI, has Ray focusing his attention on this and related technologies as he guides Sikich's internal use journey as well as that of our clients.