AI, digital transformation are top of mind with manufacturing CFOs

In 2025, artificial intelligence (AI) and digital innovation will be at the forefront of transformation in the manufacturing industry.

As businesses pivot toward technology-driven strategies, AI is set to redefine operational efficiency, drive growth, and secure long-term competitiveness, according to a new survey of 100 manufacturing chief financial service officers from accounting, tax, and advisory firm BDO.

In its newly published 2025 Manufacturing CFO Outlook Survey, BDO found that advanced tools such as agentic AI, edge AI, and digital twins will revolutionize manufacturing by enhancing productivity, optimizing decision-making, and increasing supply chain agility.

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AI to be at forefront of digital transformation in 2025 manufacturing

A growing number of manufacturers recognize the strategic importance of AI. 32% are adopting or expanding AI for supply chain management, the report shows. This shift reflects a broader industry trend to leverage technology to streamline operations and meet rising consumer demand. CFOs will be central to this transformation. 53% expect their involvement in strategic AI discussions to increase over the next 12 months, up from 36% last year. Their leadership in integrating AI and analytics will be critical in improving decision-making, driving revenue, and resolving supply chain challenges.

“2025 is set to be a breakthrough year for focused AI investments. In addition to proprietary platforms, technologies such as agentic AI, edge AI and digital twins bring the potential to revolutionize manufacturing operations,” says BDO Principal, National Manufacturing Industry Group – Digital Leader Maurice Liddell.

To succeed in this digital-first landscape, manufacturers must establish robust data foundations, align technology investments with business objectives, and ensure workforce buy-in. Tailored, proprietary AI solutions will allow companies to fine-tune technology for specific applications, giving them a competitive advantage. Partnering with vendors offering secure, in-house AI platforms—such as ChatGPT hosted within Microsoft Azure — can further accelerate adoption while ensuring data security.

Potential tax policy reforms, including adjustments to the Tax Cuts and Jobs Act (TCJA) for R&D amortization, interest deductibility, and bonus depreciation, could also offer financial advantages to manufacturers. Despite ongoing tariff concerns, companies that invest in AI-driven strategies will be better equipped to navigate these challenges.

Workforce development remains vital, as manufacturers expand domestically and address an ageing workforce. Upskilling employees in AI and digital tools will be essential to maintain competitiveness. Manufacturers that effectively balance growth, technological adoption, and operational efficiency will gain a lasting competitive edge in an increasingly digital global market.

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