IT in Manufacturing


AIoT drives transformation in manufacturing and energy industries

I&C February 2026 IT in Manufacturing

AIoT, the convergence of artificial intelligence and the Internet of Things, is enhancing efficiency, security and decision making at manufacturing, industrial and energy companies worldwide, according to research shared by SAS, a global leader in data and AI.

Key findings from the IDC InfoBrief, ‘How AIoT Is Reshaping Industrial Efficiency, Security and Decision Making’, sponsored by SAS, include:

Predictive maintenance dominates current AIoT use. Nearly 71% of organisations use AIoT for predictive maintenance, the most widely adopted use for manufacturing, industrial, and energy companies surveyed. IT automation (53%) and supply and logistics (47%) were the next most cited uses for AIoT.

AIoT drives tangible business value. 54% of respondents anticipate major cost savings, 52% predict smarter and faster innovation, and 49% expect streamlined operations from their investment in AIoT. Additionally, 63% believe AIoT will boost productivity and competitiveness.

Skills gap emerges as the top challenge. The skills gap is the biggest barrier to AIoT success, outpacing legacy system integration and data quality issues as the most significant roadblock. Other challenges include high implementation costs, business process misalignment and cultural resistance. Addressing these issues is essential to unlocking AIoT’s full potential.

Heavy AIoT users see greater value. Organisations using AIoT heavily are twice as likely to report benefits that significantly exceed expectations compared to those that only use the technology sparingly. Strikingly, less than 3% say the value of AIoT “did not meet expectations.”

Momentum builds. A full 62% of organisations globally have adopted AIoT, with another 31% planning to do so. Of current adopters, 43% have achieved widespread or fully integrated deployments.

Regional adoption and perceived value vary. The Asia Pacific region leads in moderate adoption of AIoT, while North America shows a strong push for significant growth. The Europe, Middle East and Africa (EMEA) region remains optimistic regarding AIoT’s value across all usage levels.

“Our research found that heavy users of AIoT were almost twice as likely to report benefits that significantly exceeded expectations, while less than 3% of industrial executives surveyed said AIoT’s value did not meet expectations,” said Kathy Lange, IDC research director, AI Software. “The takeaway is clear. AIoT is fuelling innovation, streamlining operations and driving smarter, faster decisions.”

The IDC research is based on a global survey of more than 300 industrial executives in the manufacturing and energy industries.

“This IDC InfoBrief confirms what manufacturing and energy customers are telling us worldwide. AIoT has evolved from a buzzword to a potent technology and business imperative,” said Jason Mann, vice president of IoT at SAS. “Whether enhancing the predictive maintenance of critical equipment or improving operations across factories and electric grids, AIoT drives major cost savings, quality improvements and efficiency gains.”

The transformation of manufacturing

Manufacturers and industrial companies face countless challenges, including supply chain disruptions, national security concerns and persistent labour shortages. In response, manufacturers are accelerating digital transformation strategies, and leveraging technologies like AIoT to modernise operations and address workforce gaps.

Factory automation is one of the most visible outcomes of this transformation, and AIoT is a catalyst driving it forward. Across sectors, manufacturers are using AIoT to automate tasks and but decisions, thereby optimising processes, improving product quality and reducing downtime.

“As this InfoBrief clearly indicates, AIoT drives business value, and the more industrial companies use it, the greater benefits they see,” said Dez Tsai, global director of AI, data and vendor tansformation at TD SYNNEX, SAS’ strategic IT distribution partner. “We anticipate the adoption of AIoT solutions will accelerate as companies experience greater efficiency, productivity and cost savings.”

Energising the market

For power and energy companies, AIoT offers many benefits. By analysing data from countless sensors across the grid and in major equipment including generators, power plants and wind turbines, AIoT can improve grid efficiency by helping operators manage costs, predict demand, optimise operations and enhance sustainability efforts.

AI technologies give more people within an organisation the ability to interact with data, including those with varying skill levels and job roles. This directly addresses the skills gap found in the research. People working on the plant floor, servicing overhead lines or creating corporate strategy can all make data-driven decisions that leverage IoT and generative, agentic and traditional AI.

Accelerating AIoT innovation

SAS IoT solutions combine AI, machine learning, and edge-to-cloud integration enabling analysis of high-volume, high-velocity data. Joining AI with these IoT solutions extends the value of existing infrastructure investments, and digitally transforms the workforce by shifting from manual oversight to intelligent orchestration.

For further information please contact Mabel Schrimpton, SAS, [email protected], www.sas.com




Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

How digital infrastructure design choices will decide who wins in AI
Schneider Electric South Africa IT in Manufacturing
As AI drives continues to disrupt industries across the world, the race is no longer just about smarter models or better data. It’s about building infrastructure powerful enough to support innovation at scale.

Read more...
How quantum computing and AI are driving the next wave of cyber defence innovation
IT in Manufacturing
We are standing at the edge of a new cybersecurity frontier, shaped by quantum computing, AI and the ever-expanding IIoT. To stay ahead of increasingly sophisticated threats, organisations must embrace a new paradigm that is proactive, integrated and rooted in zero-trust architectures.

Read more...
2026: The Year of AI execution for South African businesses
IT in Manufacturing
As we start 2026, artificial intelligence in South Africa is entering a new era defined not by experimentation, but by execution. Across the region, the conversation is shifting from “how do we build AI?” to “how do we power, govern and scale it responsibly?”

Read more...
Today’s advanced safety system is but the beginning
Schneider Electric South Africa IT in Manufacturing
Industrial safety systems have come a long way since the days of hardwired emergency shutdowns. Today, safety systems are not just barriers against risk; they are enablers of safer operations.

Read more...
Siemens brings the industrial metaverse to life
Siemens South Africa IT in Manufacturing
Siemens has announced a new software solution that builds Industrial metaverse environments at scale, empowering organisations to apply industrial AI, simulation and real-time physical data to make decisions virtually, at speed and at scale.

Read more...
Five key insights we gained about AI in 2025
IT in Manufacturing
As 2025 draws to a close, African businesses can look back on one of the most pivotal years in AI adoption to date as organisations tested, deployed and learned from AI at pace. Some thrived and others stumbled. But the lessons that emerged are clear.

Read more...
South Africa’s AI development ranks 63rd in the world
IT in Manufacturing
The seventh edition of the Digital Quality of Life Index by cybersecurity company, Surfshark ranks South Africa 75th globally.

Read more...
Optimising MRO operations through artificial intelligence
RS South Africa IT in Manufacturing
AI is reshaping industrial operations at every level in the maintenance, repair and operations supply chain, where it is driving efficiency, predictive insight and smarter decision making.

Read more...
Data centres in an AI-driven future
Schneider Electric South Africa IT in Manufacturing
A profound transformation will begin to take hold in 2026 as AI becomes ever more ingrained in every aspect of life, and the focus shifts from LLMs to AI inferencing.

Read more...
Driving innovation in agricultural machinery
Siemens South Africa IT in Manufacturing
A leading Argentine agricultural machinery manufacturer, Crucianelli has adopted the Siemens Xcelerator portfolio of industry software to drive innovation and digital transformation of its business, from product ideation and development to production and to its extended dealer network.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved