AI skills shortages and ageing industrial infrastructure are undermining companies’ ambitions to scale artificial intelligence and meet sustainability goals, according to new research from GlobalLogic and HFS Research.
The study surveyed more than 100 C-suite and senior leaders from large industrial groups across automotive, aerospace, chemicals, energy and utilities, and construction. It found that although executives view AI, sustainability, and workforce transformation as strategic priorities, most organisations lack the skills, governance structures, and modern systems needed to deliver on those ambitions.
More than half of respondents said that skills shortages were the main reason AI and advanced technology projects stalled or underperformed. Nearly as many cited difficulties integrating new tools with legacy systems, creating what the report described as growing technical debt.
Srini Shankar, GlobalLogic’s President and Chief Executive, said many industrial groups were attempting 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”. He added that growing onshoring activity in the United States was intensifying competition for scarce and expensive specialised talent.
The report highlights a widening gap between current operational priorities and future expectations. While 46% of executives rank cost reduction among their top priorities today, the authors said AI adoption and operational optimisation were expected to take precedence within two years. At the same time, concerns about the attractiveness of industrial careers are mounting: 58% of executives believe prospective employees see limited mobility in manufacturing, while almost half say the sector is perceived as underpaying compared with rival industries.
Josh Matthews of HFS Research said industrial leaders needed to embed sustainability, talent, and technology transitions into both strategy and day-to-day operations. “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,” he said.
The report urges industrial companies to invest in structured upskilling, develop human-AI operating frameworks, modernise core systems rather than patch ageing infrastructure, and set out clearer career pathways to improve the sector’s appeal. It argues that while executives must continue to balance day-to-day operational pressures with long-term transformation, those that build the capability to do both simultaneously will be better positioned to capture new revenue opportunities and improve productivity.
