The year 2025 brought major change and new challenges to the manufacturing industry. Tariffs and export restrictions made international trade more complex, and sustainability requirements became stricter. Supply chains shifted quickly, and many companies struggled to adapt. At the same time, AI advanced fast, and organizations had to keep up. Based on IFS predictions and common market expectations, AI’s popularity will keep growing. In 2026, the trend is expected to be clearly visible across manufacturing.
The AI conversation is shifting. Earlier, companies debated whether they should use AI. Now the focus has moved to how to implement AI quickly, and how to scale the benefits across the business. Scaling often fails because of legacy systems, inflexible structures and fragmented data.
IFS has published predictions that highlight the key trends for manufacturing in 2026. Here are the main takeaways:
1. Companies will redesign organizational structures for the AI era
Many companies still run on sequential ways of working, where each unit optimizes its own tasks. These structures slow down AI use. AI connects information in real time across different parts of the business, but departmental boundaries block data flow. As a result, the benefits stay limited to individual teams. In 2026, companies will take a fresh look at their structures and remove barriers that prevent them from using AI effectively.
2. AI will speed up proactive supply chain planning
Supply chain planning will move from occasional analysis to continuous modelling with AI. AI will organize fragmented data more effectively, generate scenario analyses and support faster decision-making. The result is a more agile and proactive supply chain. More manufacturers will build these capabilities in-house instead of relying on external parties for analysis.
3. Sustainability tracking becomes a daily routine
Sustainability regulation will keep changing and becoming more demanding, and manufacturers will need to keep pace. In 2026, sustainability will not live only in annual reports. Companies will move toward daily sustainability tracking, where AI plays a key role. AI can monitor energy use and emissions, flag exceptions and suggest corrective actions.
4. Robots will take a bigger role in production
OECD statistics show that industrial productivity growth has slowed in recent years, even though companies have adopted new technologies. Why? Legacy systems are part of the reason, but labour shortages also play a major role, so many companies are turning to robotics. Robotics has reached a point where robots can work flexibly and efficiently alongside people. Collaborative robots and humanoid robots will become more common on the shop floor, handling routine and support tasks.
Extra: Aveso’s 2026 prediction for industrial AI in manufacturing
Last year, IFS made a major push in industrial AI. The IFS Cloud 25R1 and 25R2 releases introduced more than 200 new industrial AI capabilities. Release 25R2 also included IFS Loops Digital Workers. At the same time, IFS launched the Nexus Black initiative. Its goal is to speed up the practical use of agent-based and contextual AI in industrial companies and to bring AI solutions directly into operational processes.
Aveso expects that manufacturing companies using IFS will upgrade to newer 25R1 and 25R2 versions, and to the upcoming 26R1 and 26R2 releases, at a faster pace in 2026. These upgrades will give them access to the new IFS AI capabilities delivered through the releases. Aveso also predicts that its Finnish manufacturing customers will start bringing their first AI use cases into everyday ERP work in 2026. By doing so, they will improve efficiency and strengthen their competitive advantage.
Summary
AI and robotics will develop faster in 2026 than ever before. The pace will not slow down, so companies will need the ability to evolve with technology and redesign the way they work to get the most out of technology. Competitive advantage comes from breaking down organizational silos and ensuring that data and processes support decision-making.
This blog post is based on IFS’s “Manufacturing Trends 2026” blog post.
