IFS has released the results of its global study on the accelerating scale of Industrial AI adoption across asset-intensive industries. The study found that while organizations, particularly in the service industry, are adopting AI today, they are not fully prepared for its full implementation. This has created what IFS calls the ‘AI Execution Gap.’
The IFS Invisible Revolution Study 2025* surveyed over 1,700 senior decision makers at industrial enterprises globally. The research identifies an ‘Invisible Revolution’: a rapid but under-recognized shift away from consumer productivity-led AI experimentation and toward embedded, operational AI across core business processes. But as with all revolutions, significant challenges, in particular an AI Execution Gap, are emerging.
The Execution Gap occurs when companies move faster into AI adoption than their staff are able to upskill, as is the case in the service industry. The study found that 58% of service firms are planning AI implementation departments in the next twelve months, yet reskilling remains a significant challenge with 35% of firms expecting over 61% of their workforce to require retraining, the joint highest industry alongside the telecoms sector.
“AI is a core driver of business performance; it’s time to plug the ‘AI Execution Gap’—bring people, process, and product together to deliver tangible outcomes,” said Kriti Sharma, CEO, IFS Nexus Black. “The pace of adoption is inspiring, but the next big unlock will come from scaling trust, strategy, and talent. Industrial AI is a powerful force for good, and we’re in a moment of opportunity: those who move fast will lead the next decade of industry.”
Growing AI value, but lagging in readiness and trust issues
The research reveals a striking contrast at the heart of the AI surge. While the technology is already delivering impressive returns, most organizations remain unprepared to scale its impact and a lack of trust in AI prevails.
Out of all the industries covered in the study, service emerged as the least likely to create new AI roles (70%) and reports the highest number of firms not confident in having the skills. Yet the study clearly finds opportunities available to companies that embrace AI. Across the service industry, 87% of firms say AI has already improved profitability and a further 67% have seen a ROI uplift.
So how do service organizations adapt to ensure they stay competitive? Training and upskilling—supporting employees to thrive in an AI-First environment will be key to ensuring that industrial companies remain relevant. The service industry is certainly on the right track, with 62% of firms expecting to be AI-First within a year.
Despite growing confidence in AI’s potential to boost productivity and growth, trust remains a major hurdle. The study found that the service industry has the lowest level of trust in AI, particularly when it comes to trusting AI in strategic decisions (74%), 69% in talent decisions (lowest of all industries), and 76% in automation of operations (lowest of all industries).
The clock is ticking
The IFS research signals a new stage of enterprise AI, no longer confined to innovation labs, but powering frontline operations. The next 12 months will be decisive as those service organizations that close the ‘AI Execution Gap’ now will shape the future of industrial leadership.
Kriti Sharma concluded: “We’re experiencing one of the most profound and underestimated shifts in global business. Industrial AI is here and already reshaping how entire industries run, compete, and grow. The time is now.”
IFS Nexus Black applies deep domain expertise and industrial-grade AI to build production-ready products proven to minimize risk, maximize return, and deliver results in weeks, not years.
