GlobalLogic Inc., a Hitachi Group Company and leader in digital engineering, has released a new report, in partnership with HFS Research, that highlights insights into how industrial enterprises are managing AI adoption, sustainability transitions, and workforce transformation. The research reveals that despite executive ambitions, 51% of organisations cite skills gaps as the primary reason AI and advanced technology initiatives fail or underperform.
The research, which surveyed more than 100 C-level and senior executives from $1 billion+ industrial firms across automotive, aerospace, chemicals, energy and utilities, and construction, highlights a clear challenge: while leaders acknowledge the urgency of AI, sustainability, and talent transformations, a fundamental misalignment between present priorities and future expectations is halting innovation.
“We undertook this research to understand why industrial leaders see AI, sustainability, and talent as top priorities yet struggle to turn them into measurable results,” said Srini Shankar, President and CEO at GlobalLogic. “We found many are trying to deploy advanced technologies without the talent, the clear AI governance frameworks, and without transition plans that link today’s efficiency pressures to tomorrow’s strategic goals. As onshoring accelerates in the United States, leaders face rising domestic demand but scarce and costly specialised talent.
“At GlobalLogic, we’re moving beyond experimentation to deliver AI-driven industrial ecosystems that create measurable value today. By combining our deep heritage in embedded systems, Edge AI, IT-OT convergence, OT cybersecurity, Industrial IoT, and next-generation connectivity, such as 5G/6G, GlobalLogic delivers the core capabilities industrial clients need to advance their Physical AI journeys.
“When combined with Hitachi’s proven OT and product excellence, we are empowering organisations to modernise faster, operate smarter, and accelerate their transformation across sustainability, productivity, and talent. Together with our industrial clients, we are advancing next-generation capabilities in servitisation, digital twins, industrial automation, predictive maintenance, and frontline worker productivity and safety—helping them unlock new revenue models while driving meaningful gains in operational efficiency and performance.”
Key Findings from the Report:
The study reveals that industrial enterprises are trapped between ambition and capability, lacking the talent, frameworks, and integration strategies to execute on generational transitions:
Upskilling Becomes the New Imperative: While 51% of companies say skills gaps hinder AI and advanced technology initiatives, half lack structured upskilling programs, and 42% struggle to find digital and AI talent. As seasoned workers retire and fewer new candidates enter traditional roles, industrial leaders are turning to agentic AI and sustainability-driven innovation to bridge the divide.
Legacy Systems Create Technical Debt & Block Progress: Legacy systems create technical debt and are a clear sign of limited readiness to support the new, ‘intelligent,’ connected operating models required for technologies like agentic AI. Nearly half (49%) identify integrating new technologies with legacy systems as their greatest barrier to deploying advanced digital technologies.
Priorities Shift to AI: Nearly half (46%) of executives currently prioritise reducing operational costs in their top three priorities, but research shows that in 2 years, AI adoption and operational optimisation will take top spot in priorities.
Industry Seen as Career Dead-End: 58% believe talent sees limited career mobility in the manufacturing sector, 48% cite lack of innovation perception, and 46% acknowledge underpaying compared to other sectors—fueling a deepening talent crisis.
“Industry executives must immediately embed their sustainability, talent, and technology transitions in both strategy and daily operations,” said Josh Matthews, HFS Research. “Clear outcomes and messaging must show the current and future workforce that an enterprise is part of the sustainable and technology-based future, not reacting to those who lead it.”
The report provides actionable recommendations for industrial enterprises to navigate these transitions successfully, including:
Building integrated plans that link short-term efficiency with long-term strategy.
Immediately investing in talent development and human-AI frameworks.
Modernising systems to enable new operating models rather than patch legacy infrastructure.
Establishing clear metrics and career pathways that demonstrate the sector’s commitment to innovation.
The bottom line is that executives will never escape the pressure to balance operational demands with strategic transformation, but those who build the structures to do both simultaneously will succeed.
Click here to download the full report.
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