Policy and Legal

A big majority of manufacturers expect AI to become essential to their operations by 2030—but they need policymakers to support all that growth and innovation, as a new report from the Manufacturing Leadership Council, the NAM’s digital transformation division, lays out.

By the numbers: The report found that 51% of manufacturers already use AI in their operations.

• Meanwhile, 61% expect investment in AI to increase by 2027.
• That number only grows as manufacturers look further into the future. By 2030, 80% say AI will be essential to growing or maintaining their business.

Current barriers: Right now, manufacturers say some barriers prevent them from implementing AI to its fullest potential.

• They name data quality and availability as the top challenges, with 65% of respondents reporting they lack the right data for AI applications and 62% citing data that is unstructured or poorly formatted.

The policy angle: Manufacturers don’t just need to overcome the technical, logistical or workforce challenges of rolling out AI solutions—challenges that include everything from modernizing data architectures to upskilling and training workers on new tools. They also need a pro-growth policy framework, which the NAM has supplied for policymakers. The key recommendations are:

• Adopt a pro-AI regulatory approach: Given the growing number and variety of use cases of AI in manufacturing, the industry requires an optimized regulatory environment.
• Develop the manufacturing workforce of the AI age: Policymakers should support training programs, career and technical education institutions and STEM education and immigration. According to the MLC’s report, 82% of manufacturers cite a lack of AI-ready skills as the top workforce challenge.
• Advance energy and permitting reform: AI needs a lot of power, and energy and permitting reform is necessary to support AI-related data center growth.
• Protect personal data: Congress should pass a comprehensive privacy law that preempts state laws, provides liability protections that prevent frivolous litigation and adopts a risk-based approach that enables innovation and AI.
• Support U.S. manufacturing of AI chips: Policymakers should execute funding agreements with chip manufacturers and renew the Advanced Manufacturing Investment Credit.
• Incentivize U.S. AI innovation: Congress must pass the One Big Beautiful Bill Act that preserves pro-manufacturing tax policies.

Manufacturers say: “AI continues to drive innovation, efficiency and better outcomes for manufacturers across America. From accelerating drug discovery and development to optimizing manufacturing operations, AI enables companies to make smarter, faster and more impactful decisions,” said Johnson & Johnson Executive Vice President and Chief Technical Operations and Risk Officer and NAM Board Chair Kathy Wengel.

• “Importantly, AI empowers employees at all levels, when we equip them with the knowledge and understanding to help shape the implementation of these new technologies. AI is proving to be an essential partner on the shop floor, and we must continue to ensure manufacturing employees have the skills they need to build the future of our industry.”

The last word: “The latest report from the MLC reinforces the need for modernized, agile, pro-manufacturing AI policy solutions, so that manufacturers can continue to innovate on shop floors across America,” said NAM President and CEO Jay Timmons.

• “Manufacturers welcomed President Trump’s early commitment to maintaining and advancing America’s global AI dominance, and we look forward to continuing to champion American AI leadership and manufacturing in America, which starts with adopting a pro-AI regulatory framework and pursuing policies that bolster innovation.”