{"id":13481,"date":"2026-05-26T08:35:17","date_gmt":"2026-05-26T15:35:17","guid":{"rendered":"https:\/\/wp-admin-prod.qad.com\/blog\/?p=13481"},"modified":"2026-05-26T08:35:17","modified_gmt":"2026-05-26T15:35:17","slug":"why-manufacturing-cfos-need-to-think-differently-about-ai","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2026\/05\/why-manufacturing-cfos-need-to-think-differently-about-ai","title":{"rendered":"Why Manufacturing CFOs Need to Think Differently About AI"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;13482&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">AI spend in manufacturing is growing fast. It already accounts for <\/span><a target=\"_blank\" href=\"https:\/\/www.cisco.com\/site\/us\/en\/solutions\/networking\/industrial-iot\/industrial-networking-report\/index.html\" rel=\"noopener\"><span style=\"font-weight: 400;\">12% of manufacturers&#8217; IT and OT budgets<\/span><\/a><span style=\"font-weight: 400;\">. By 2030, that figure is projected to increase <\/span><a target=\"_blank\" href=\"https:\/\/www.researchandmarkets.com\/report\/artificial-intelligence-in-manufacturing?srsltid=AfmBOopTthivrP5yqF_5OHKBR2342Bo90fkyl1YaxR58u_hTLe_8oOMm\" rel=\"noopener\"><span style=\"font-weight: 400;\">nearly five times<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Last week, we published a white paper for CFOs on how to operationalize AI across their manufacturing plants. I also shared a LinkedIn article titled \u201c<\/span><a target=\"_blank\" href=\"https:\/\/www.linkedin.com\/pulse\/why-best-manufacturing-cfos-focused-execution-hype-sanjay-brahmawar-bodnc\/?trackingId=vGPIiLpDmi6r6IgSiQaXNg%3D%3D\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">Why the Best Manufacturing CFOs Are Focused on Execution, Not Hype.<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">\u201d<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The response reinforced something I\u2019ve been hearing consistently in conversations with manufacturing leaders around the world: CFOs are no longer asking whether AI matters. They are asking where it creates real operational value \u2014 and how quickly that value can show up inside the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That distinction matters.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because manufacturing does not have a shortage of AI enthusiasm right now. It has a shortage of operational clarity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Over the last year, I\u2019ve spent time with CFOs across aerospace, automotive, industrial products, life sciences, and consumer goods. Almost every conversation eventually lands in the same place:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which AI investments actually move the business?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which ones improve resilience and speed?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">And which ones simply create more complexity?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">That is exactly why we published our new paper, \u201c<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/a-cfos-pragmatic-guide-to-ai-in-mid-market-manufacturing\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">A CFO\u2019s Pragmatic Guide to AI in Mid-Market Manufacturing.<\/span><\/i><\/a><span style=\"font-weight: 400;\">\u201d Not as a technology paper. An operational one. Because I believe the most important shift happening in manufacturing today is this:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The companies creating meaningful advantage with AI are not necessarily the ones spending the most. They are the ones reducing friction inside their operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In manufacturing, the cost of slow decisions compounds quickly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When demand changes, when suppliers miss deliveries, when production constraints emerge, or when customer requirements shift, the organizations that respond fastest gain the advantage. Yet many manufacturers are still operating through workflows built for a very different era:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">disconnected systems<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">manual approvals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">fragmented data<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">and long delays between signal and action<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most companies already have the information. What they lack is the ability to operationalize it quickly enough across the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why I believe manufacturing is moving from <\/span><a target=\"_blank\" href=\"https:\/\/www.linkedin.com\/pulse\/from-systems-record-action-why-agentic-ai-90-day-sanjay-brahmawar-prcjf\/?trackingId=JJt2DoABTLuysH9XEeuFrg%3D%3D\" rel=\"noopener\"><span style=\"font-weight: 400;\">Systems of Record to Systems of Action<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The future advantage will not come from collecting more dashboards or layering AI on top of already broken workflows. It will come from embedding intelligence directly into operational execution \u2014 into the way decisions are made, escalated, approved, and acted on across the enterprise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That perspective came through repeatedly in our conversations with manufacturing finance leaders featured in the paper.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Kevin Davis, VP of Finance at <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/case-studies\/amsafe\" rel=\"noopener\"><span style=\"font-weight: 400;\">AmSafe Aviation<\/span><\/a><span style=\"font-weight: 400;\">, described the challenge well. His organization manages more than 100,000 SKUs while supporting airlines globally in an environment where geopolitical shifts and supply chain volatility can change operating conditions almost overnight.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As Kevin shared with me during our discussion, \u201cThe biggest challenge isn\u2019t lack of information. It\u2019s knowing what matters fast enough to act on it.\u201d I believe that statement captures the manufacturing challenge today better than almost anything else.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The manufacturers pulling ahead are focusing on a smaller number of high-value operational workflows that directly improve execution:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">procurement,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">production planning,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">exception handling,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">inventory allocation,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">transactional automation,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">and frontline decision-making.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Importantly, the best CFOs are also approaching AI with discipline. They are not funding AI initiatives simply because they sound innovative. They are asking tougher operational questions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does this reduce friction?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does this create capacity?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does this improve responsiveness?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does this help the business move faster with more confidence?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">That mindset is critical because the next phase of agentic manufacturing will not be defined by the number of pilots companies launch. It will be defined by how effectively organizations operationalize intelligence across the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is no longer theoretical.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Manufacturing is entering a once-in-a-generation transition \u2014 from delayed decision-making and fragmented operations to adaptive, connected enterprises capable of sensing and responding in real time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And in my view, CFOs are increasingly becoming the leaders who will determine how successfully organizations navigate that transition. Not because AI is a finance initiative, but because operational speed, resilience, and execution are now business model questions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The manufacturers that win the next decade will not be the ones chasing hype. They will be the ones building organizations that can decide and execute faster than everyone else.<\/span><\/p>\n<p><b>Read the full paper: \u201c<\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/a-cfos-pragmatic-guide-to-ai-in-mid-market-manufacturing\" rel=\"noopener\"><b>A CFO\u2019s Pragmatic Guide to AI in Mid-Market Manufacturing.<\/b><\/a><b>\u201d<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;13482&#8243; img_size=&#8221;full&#8221;][vc_column_text]AI spend in manufacturing is growing fast. It already accounts for 12% of manufacturers&#8217; IT and OT budgets. By 2030, that figure is projected to increase nearly five times. Last week, we published a white paper for CFOs on how to operationalize AI across their manufacturing plants. I also shared a LinkedIn article [&hellip;]<\/p>\n","protected":false},"author":215,"featured_media":13482,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,197],"tags":[3202,3399,545,3397,3396,3398,24],"class_list":["post-13481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-innovation-and-technology","tag-ai-in-manufacturing","tag-amsafe-aviation","tag-artificial-intelligence","tag-cfos","tag-finance-ai","tag-guide-to-ai-in-mid-market-manufacturing","tag-manufacturing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why Manufacturing CFOs Need to Think Differently About AI | QAD Blog<\/title>\n<meta name=\"description\" content=\"Manufacturing CFOs are shifting from AI hype to execution\u2014using AI to improve operational speed, resilience 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