The Real Reason AI Fails in Manufacturing

AI doesn’t fail because people resist it.

It fails because leaders introduce it the wrong way.

Every other week, someone tells me, “We’re exploring AI.”

That’s usually code for: nothing’s going to happen for a few years.

A few months ago, I sat in on an “AI strategy” meeting at a mid-sized manufacturer.

Twenty people in a boardroom, donuts on the table, everyone nodding about “innovation.” Two hours later, they left feeling inspired.

Six months later, not one process had changed.

That story isn’t unique. Of the 150+ factories I’ve visited, more than half still don’t use AI day-to-day.

This isn’t about tools, it’s about mindset.

Let’s talk about how to fix that and the small changes you can make TODAY to start introducing AI. 

Why Teams Push Back

Here’s what I hear every week:

• “My team’s fine the way things are.”

• “AI will take our jobs.”

• “We tried it once, but the AI doesn't work.”

• “Our data’s not clean enough.”

• “We just made a big tech change.”

• “I don’t want the headaches that come with change.”

They’re not wrong to hesitate. Most “AI rollouts” make people’s jobs harder, it should make it easier.

At the end of the day, if someone is resisting, it is because they do not understand that.

Before You Start: You Must Understand This 

People → Process → Technology.

Start with your people. If your people don’t know why something’s changing, they’ll quietly ignore it or wait for it to fail.

Then fix your processes. If the workflow is not manually good, AI will only be like putting a band aid on a broken leg. 

Finally, bring in technology that actually moves a KPI that matters, not the ones with cool demos. Focus on what will actually remove real friction from your day. 

If this sounds like you, slow down. You can’t automate your way out of confusion.

Start Small and Build Momentum

Most companies fail with AI because they go for the “big bang” approach. It almost never works.

The companies that actually succeed start small. They pick one process and measure it.

Ask simple questions:

• How much time are we spending now?

• How many errors or reworks happen each week?

• Where are the bottlenecks?

Then use AI to improve a small controlled area. Small wins that build trust and momentum.

What small things you can do today

1. Get stakeholders aligned on the KPIs that matter -

If the C-suite can’t agree on which dials actually matter, the rest of the company is guessing.

Pick one to three KPIs, things that actually move the business:

Top-line revenue, on-time delivery, cost per part, margin per order, etc. 

Make sure every project and “AI idea” ties back to one of them.

If it doesn’t move a KPI, it’s a distraction.

2. Drill Down Problems

Teams love to describe problems like this:

“Our operations are inefficient.”
“We need better visibility.”

That is not helpful.

Until you can say out loud what’s really wasting time, you can’t fix it.

Keep asking why until you hit something you could actually measure.

Example:
“Orders are late.” → Why? “Because quotes take too long.” → Why? “Because engineering has to re-enter data.”

Now you’ve got something you can automate.

Until your problems are that specific, you’re just pointing fingers.

3. Run the “Would You Pay $100?” Test

Take the boring, repetitive tasks your team does every day

Ask:

“Would I pay $100 to not have someone do this today?”

If yes, that’s a problem worth solving.
If not, move on.

This test keeps you focused on pain that’s expensive enough to matter.

Do research into that problem, it is very likely others have it and someone created a solution.

When It Still Doesn’t Work

But let’s say you try all this and it still doesn’t click. I’ve seen that too, and there’s no one-size-fits-all answer.

Ask yourself:

1. Did we actually set clear goals for what we want to achieve with AI?
   
   

2. Do we know what AI can actually do for each department?
   
   

3. Does our IT team know how to support implementation?
   
   

4. Do we have champions trying to understand what is possible?
   
   

5. Or is the real issue that the team just doesn’t want to change?

Each of these has a different solution and the only person who can answer these questions are you.

My ask to you

What is stopping you from just getting one small win this week?