An executive newsletter providing practical insights on AI value, risk, and governance. ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­    ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­  
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Manufacturing AI Decoded:

Cut Through the Noise

Why This Newsletter, and Why Now? 

Since our first issue, the conversation around AI in manufacturing has continued to evolve, moving from curiosity to commitment. As organizations move from the "pilot phase" toward scaled adoption, the need for clear, actionable insight is only growing. That's why this newsletter exists: to help leaders like you navigate that shift with confidence.

Big Takeaways This Issue

Short on time? These are the most important insights in this issue. 

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  • Members benchmark AI budgets with other manufacturers.

  • New Alliance report shows members going all in with AI.

  • Just 9% of the corner office see AI reducing their human headcount.

  • AI solves a math riddle that eluded humans for 80 years.

  • AI shock quote: "Biggest thing ever."

Pulse Check: AI Surveys for Leaders

Where Are You Investing AI Dollars?

AI budgets are shifting quickly. Take this quarter's pulse survey to share where your organization is focusing its AI investments and benchmark against your peers. 

Take the Survey

Check out the results of last quarter's survey on AI adoption rates. 

AI in Action: Member Spotlight

New Alliance Study Showcases How Members Are Embracing AI to Transform Business Operations

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In this issue, we're shining a spotlight on the Alliance's new AI study, The Great Acceleration, which captures how members are moving from AI pilots to enterprise transformation. Here's a snapshot of what's driving results: 

Members Are Seeing AI Deliver "Transformational" Change:

Naïty Jacel, Vice President of Digital Supply Chain Strategy at Lincoln Electric, has cracked the "holy grail" of change management: getting employees to not just accept AI, but to demand more of it. 

Naity Jacel, Lincoln Electric

"The more people learn, the more they’re demanding of the platform, the more we iterate on its capabilities. It’s been transformational for us to be able to have both the training and the delivery of impact," Jacel said. 

Members Are Breaking Down Silos to Scale AI Across Operations: 

Zakaria Siddiqui, Director of Artificial Intelligence at Southwire, has made cross-functional alignment the cornerstone of the company's AI strategy—grouping projects around logistics, production, and business functions so they advance together rather than in isolation. 

Siddiqui, Zakaria

“If AI simply told production to make more wire but logistics didn't know about it, that would be a mess. We just want to make sure that we are not focusing only on one side of this entire puzzle," Siddiqui explained. 

Members Are Redefining What ROI Means for AI:

Erich Kaepp, Chief Operations and Supply Chain Officer at GALLO, is making the case to leadership to categorize their AI investments as "AI bets." Why? With the technology behind AI literally changing by the hour, coupled with its glacial rate of return, managing leadership expectations on AI's eventual payday is critical.

Erich Kaepp, GALLO

“We don't know whether or not there will be a return, but we're in an environment now where we need to actually take some bets. It's a different way of thinking," Kaepp said. 

Members Are Building AI Assistants to Reimagine Customer Service:

Heiko Will, Chief Digital and Information Officer at MSA Safety, trained an AI assistant on the company's product manuals, giving customer service teams rapid access to product information. The approach was designed to scale from the start.

Heiko Will, MSA Safety

“We focused on areas that could scale. We avoided one-offs.That allowed us to take a more holistic view rather than looking at the ROI of an individual project.” Will explained.

The Bottom Line: Members who keep an unwavering eye on their organizations' strategic goals will achieve greater business gains and will see those gains extending well into the future. By 2030, many study participants expect AI to deliver even greater innovation and, as one member put it, "efficiency on steroids."

Explore the Full Study

Stat Du Jour: 9% 🤖 

That's the percentage of CEOs who anticipate cutting jobs this year due to AI, according to the 2026 KPMG U.S. CEO Outlook Pulse Survey.

 

⏳Time machine: One year ago, 35% of CEOs said they planned workforce reductions over the next two to five years due to AI.

 

Why it matters: The drop in this data point could signal growing confidence in workforce adaptation, or simply that timelines are shifting.  

AI Events Worth Your Time

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AI Agents in Practice: What's Working and What's Not

July 29

2-3 pm ET

Members Only

Register

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Redefining Roles: How AI is Changing the Org Chart

September 18

2-3 pm ET

Members Only

Register

Nov_5-removebg-preview

Bridge the AI Gap in Manufacturing Conference

November 5, 2026

Rite-Hite's International HQ | Milwaukee, WI

Open to your Teams

Manufacturers aren't struggling with AI ideas—they’re struggling with execution. While pilot programs multiply, scaling real impact across operations, finance, and supply chain remains a challenge. This conference is designed to close that gap.

Learn More & Register

One Fun Thing:

AI Cracks 80-Year-Old Math Problem 

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An AI model solved a geometry problem that stumped mathematicians since 1946. The agent didn’t just find a solution; it overturned a long-standing assumption about what was mathematically possible. 

Why it matters: This is one of the clearest signs yet that AI can generate genuinely new ideas, and not just analyze existing ones.

The Final Word:

"Biggest thing ever. Since everything."

Veteran Silicon Valley investor John Doerr, who witnessed the PC revolution 50 years ago, was asked by The Wall Street Journal to complete this sentence: "The latest AI revolution is the biggest thing since..." 

In the Next Issue of Manufacturing AI Decoded...

We'll return on September 25, exploring these and other topics:

  • See how your peers are upskilling teams to apply AI to their roles.

  • Explore agentic AI to generate real business impact. 
  • Get a glimpse into the "great reshaping" taking over manufacturing as we dive into the agenda for the Alliance's November AI Conference.

Until next time, 

Ralph & Lynn

Gaillard-Ralph-web

Ralph Gaillard

Managing Director

Finance Leadership Community

rgaillard@manufacturersalliance.org

Stephan Headshot Fall 2022

Lynn Stephan

Assistant Vice President

Strategic Initiatives

lstephan@manufacturersalliance.org

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Manufacturers Alliance ®,  P.O. Box 12897,   Arlington VA 22219 
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