Frontier Technologies in Industrial Operations 2025

Executive summary The manufacturing landscape is becoming increasingly complex, and this trend is projected to accelerate in the coming years. Labour shortages, rising cost pressures and shifting customer demands, geopolitical dynamics and decarbonization goals necessitate significant operational transformation. Current technologies will be insufficient to drive the required levels of flexibility, sustainability and excellence needed to facilitate this change. To succeed, manufacturers can embrace frontier technologies that push the limits of innovation. However, navigating this rapidly evolving technological landscape is challenging, as many manufacturers need to address immediate operational needs and plan for the future of their operations. Industrial operations are likely to evolve towards an artificial intelligence (AI)-centric model, where AI drives self-controlling, near-autonomous systems while empowering humans. While near-autonomous operations may become common in some industries, human involvement will remain crucial. The role of humans will be redefined, with workers transitioning from hands-on operators to orchestrators, stepping in when judgment or creativity is required. This shift will boost operational efficiency, allowing humans to focus on strategic tasks and ethical decision- making to drive innovation and growth. In the broad landscape of frontier technologies, AI – and more specifically, rapidly evolving AI agents – have the potential to propel manufacturers towards this future, and unlock novel opportunities in operations across many industries. This report focuses on two types of AI agents: virtual AI agents and embodied AI agents. These agents are expected to enhance both digital applications and physical systems, and perform complex tasks with minimal human intervention. –Virtual AI agents – advancing autonomous software systems: Virtual AI agents enable software applications to autonomously achieve defined goals in the digital environment, acting as assistants, advisers or automation agents. These agents support workers and can also independently control and steer processes and machinery. –Embodied AI agents – ushering in a new era of robotics: Embodied AI agents equip physical systems, such as robots, with the ability to perceive and act within the physical environment, allowing for dynamic and complex movements. These advancements will be crucial for overcoming the current limitations of robotic automation. Successfully navigating the transition to near- autonomous, AI-agent-driven operations requires a comprehensive, value-driven approach to technology adoption. Solutions should be scalable and aligned with long-term business objectives. Establishing strong organizational and technological foundations that support this vision will be crucial for manufacturers looking to capture the technology’s full potential. The insights presented in this paper are focused on manufacturing and founded on the collective expertise of the initiative community, drawing from consultations with senior executives and academic experts. Moving forward, the community will continue to work closely with manufacturing stakeholders across industries to deliver a global, comprehensive outlook on the future of industrial operations. This effort will concentrate on recent and future frontier technologies, with an emphasis on responsible transformation approaches. It’s essential that manufacturers embrace frontier technologies to secure a thriving, sustainable future in manufacturing. Frontier Technologies in Industrial Operations 5