Despite executive ambitions, 51% of organizations cite skills gaps as the primary reason AI and advanced technology initiatives fail or underperform, according to insights released by GlobalLogic Inc., an Hitachi Group Company, and HFS Research.
“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,” says 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 specialized talent.”
Key takeaways:
- 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 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.
- Nearly half (46%) of executives currently prioritize reducing operational costs in their top three priorities, but research shows that in 2 years, AI adoption and operational optimization will take top spot in priorities.
- 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,” says 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.”