70% of automotive, industrial mfg. CEOs says AI won’t reduce jobs: KPMG

Key findings show 74 per cent of respondents are confident in global economic growth, signaling a forward-looking approach to challenges. Generative AI is seen as a transformative tool, with more than 70 per cent of global CEOs believing it will not reduce jobs but instead require upskilling and resource redeployment.

Half of all automotive CEOs plan to invest in generative AI within the manufacturing function, but only 22 per cent within the engineering function. For industrial manufacturing CEOs, only 28 per cent plan to invest in generative AI within the manufacturing function—which drops to 13 per cent within the engineering function.

Carmelo Mariano, the industrial manufacturing leader with KPMG in Italy, says: “To really optimize the use of AI and new technology, industrial manufacturers need to combine what they do best (manufacture physical products) with what digital does best (collect real-time data and embed AI) to differentiate their products and gain a new competitive advantage. It will not be enough to add digital functionality to analog machines—a complete reimagination is needed.”

The report also highlights workforce concerns, with 30 per cent of automotive CEOs identifying retiring employees and a lack of skilled replacements as their top issue, while 33 per cent of industrial manufacturing CEOs prioritize knowledge transfer between employees.

On environmental goals, 74 per cent of industrial manufacturing leaders cite the complexity of decarbonizing supply chains as their biggest barrier to achieving net zero, compared to just 38 per cent of automotive CEOs.

Additionally, 95 per cent of CEOs predict a full return to the office within three years—reflecting a strong belief in traditional workplace dynamics as essential to business success.

Despite the challenges, the report underscores CEO confidence in growth opportunities and the resilience of these dynamic sectors, which remain central to economies and communities worldwide. Download the full KPMG 2024 Industrial Manufacturing and Automotive CEO Outlook here.

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