GlobalLogic and HFS Research warn that legacy systems and shortages of skilled workers are slowing AI adoption and sustainability transitions across major industrial firms

GlobalLogic, a Hitachi Group company, has released new research with HFS Research that highlights the growing strain between industrial leaders’ ambitions on artificial intelligence, sustainability and workforce transformation, and their limited ability to execute on these priorities.

The study, published on Thursday, is based on responses from more than 100 senior executives from industrial enterprises with revenues above USD 1 billion across automotive, aerospace, chemicals, energy and utilities, and construction.

AI Adoption Held Back by Skills
The findings indicate that 51 per cent of organisations cite skills gaps as the main reason AI and advanced technology programmes underperform. Leaders acknowledge the urgency of modernising operations yet continue to face misalignment between immediate pressures and long-term strategic goals.

Srini Shankar, President and Chief Executive of GlobalLogic, said the research sought to understand why industrial firms placed AI, sustainability and talent at the top of their agendas but continued to fall short of measurable results. He said many organisations were attempting to deploy advanced systems without a strong talent base, clear governance structures or transition plans that bridge current efficiency needs with future expectations. As onshoring gathers pace in the United States, firms face rising domestic demand alongside shortages of specialised workers.

Shankar said GlobalLogic had moved beyond pilot projects to deliver AI-led industrial ecosystems that create value across embedded systems, Edge AI, IT-OT convergence, operational technology cybersecurity and Industrial IoT. He said that combined with Hitachi’s strengths in operational technology and product engineering, these capabilities enable enterprises to advance their Physical AI journeys and build new models in servitisation, digital twins, automation, predictive maintenance and frontline worker productivity.

Talent Gaps Slow Industrial Transformation
The report identifies several constraints. Half the organisations lack structured upskilling programmes, while 42 per cent struggle to recruit digital or AI talent. Legacy systems have created significant technical debt, with 49 per cent saying integration challenges are their greatest barrier to deploying advanced technologies. Executives also expect their priorities to shift, with AI adoption and operational optimisation set to overtake cost reduction within two years. The research notes persistent concerns over industry talent, with 58 per cent saying potential recruits see manufacturing as offering limited mobility.

Josh Matthews of HFS Research said firms must embed sustainability, talent and technology transitions within their strategies and day-to-day operations. He said organisations need clear outcomes and pathways to show both current and future workers that they form part of a technology-driven and sustainable future.

The report outlines steps for industrial firms, including integrated planning, targeted investment in talent and human–AI frameworks, system modernisation and clearer career pathways that reflect the sector’s commitment to innovation.