Is the manufacturing world ready for industry 5.0? Experts question 'innovation aptitude'

As manufacturers try to align with the future, the concept of Industry 5.0—implementing the newest technologies in production while balancing worker welfare and sustainability— is gaining traction. Europe is the leader driving progress towards Industry 5.0, however, global adoption of the newest industrial revolution will face significant roadblocks. 

According to Robert Kramer—VP and Principal, Analyst of Enterprise Data Technology, ERP and SCM at Moor Insights & Strategy, a top-ranked global high-tech research and advisory firm—the journey toward fully embracing this vision of collaboration, driven by AI, is still in its early stages.

Industrial revolution: "I’m an advocate for Industry 5.0 — a model centered on human-robot collaboration, where humans guide and oversee robotic systems. It’s about shifting people into more strategic, value-driven roles rather than repetitive tasks," Kramer explains. 

Still, Kramer emphasizes that several foundational elements need to be in place before this vision can be widely realized—elements many manufacturers are only beginning to understand. “We’re not 100% there yet,” he explains. “Most manufacturers are still in the stages of evaluating where and how AI can be meaningfully implemented.”

The ROI of AI: One of the biggest hurdles to adopting Industry 5.0, according to Kramer, is uncertainty about the investment returns of AI. "We don’t know 100% what that ROI is," he admits, pointing out that manufacturers are still in the early stages—some in the middle, others at the beginning—of implementing AI-driven innovations. While the potential is clear, the industry is grappling with where and how AI can be best deployed to create tangible benefits.

Innovation aptitude: "AI adoption in manufacturing isn’t a one-size-fits-all journey," says Kramer. "Some companies are out front, aggressively exploring innovation, while others—often larger, established players—can be surprisingly slow to move." Kramer notes that slower adopters may remain highly effective in their production capabilities, highlighting that innovation speed doesn’t always equate to operational success. "What really matters is a company’s innovation aptitude—the mindset and capacity to embrace change. That varies widely across the industry and ultimately determines how quickly a manufacturer can adapt and advance."

Supply chain disruption: Despite the challenges, Kramer sees clear potential for AI to revolutionize several aspects of manufacturing. "Supply chain is a major area ripe for AI-driven improvement. I see AI playing a pivotal role in vendor selection, anticipating disruptions, and managing volatility by predicting which suppliers are best suited for specific scenarios. It can recommend optimal responses to disruptions, dynamically adjust logistics, and optimize routes based on real-time forecasting. I also believe AI will take inventory control to an entirely new level of precision and sophistication."