New Delhi [India], June 18 : By 2035, AI-driven automation is expected to boost to manufacturing productivity globally by up to 40 per cent, with artificial intelligence detecting defects at 90 per cent accuracy and improving quality control by 35 per cent., according to recent report by the ASSOCHAM-Odisha State Development Council in collaboration with Primus Partners.

Additionally, the report also highlights that, AI adoption is likely to rise by 20 per cent, crossing 378 million users, getting major boost from the manufacturing sector.

"AI is not just optimising manufacturing--it's redefining it. Globally, AI-driven factories have achieved up to 40% productivity gains and 90% defect detection accuracy. As India embraces Industry 4.0, Odisha stands uniquely positioned with 41.2 MTPA steel capacity, 55% of India's iron ore output, and a robust digital ecosystem," said Pankaj Lochan Mohanty, Chairman, Odisha State Development Council, ASSOCHAM.

The report highlights that, last year about 35 per cent of global manufacturers were already using AI, with aim to not face issues in predictive maintenance, quality control, and supply chain management.

Particularly, 54 per cent of Indian automotive companies have already adopted AI for smart assembly lines, predictive maintenance, and quality control, driving both efficiency and product quality. Additionally, AI is also being used to revolutionize drug discovery and compliance monitoring, automating batch analysis for faster and safer production.

The report also reflects that, machine vision systems powered by AI enabling high-precision defect detection. The electronics industry is projected to reach USD 300 billion in value by 2026. Along with that "contributing 2.3 per cent to India's GDP, the textile industry is integrating AI for customized design, efficient cutting, and defect detection, boosting both productivity and export potential."

"Artificial Intelligence is rapidly reshaping global manufacturing, with over 80 per cent of manufacturers already adopting AI across operations. Studies show AI can reduce defects by 66 per cent, cut material costs by 12.5 per cent, and speed up production cycles by 20 per cent," said Kanishk Maheshwari, Co-Founder and Managing Director, Primus Partners.