August 14, 2026
Agentic AI and the Future of Smart Manufacturing
Manufacturers can leverage agentic AI, connected operations and secure IT and operational technology ecosystems to improve productivity, become more resilient and create a competitive edge.
IN THIS ARTICLE
The manufacturing industry has long struggled with disparate technology platforms supporting their IT and operational technology systems. But in recent years, IT leaders for many manufacturers have sought to minimize that separation, and agentic AI has emerged as one of the tools at their disposal. As noted in a recent report from Snowflake, “There’s a major shift toward AI-enabled execution as it becomes central to operations and optimization. And that optimization is no longer occurring in isolation, but throughout the organization with the aid of agentic AI.”
For manufacturers, AI offers an opportunity to find hidden patterns in their operational data, potentially helping to improve efficiency, employee productivity and safety while moving toward more autonomous operations. But many AI initiatives get stuck in the pilot stage, failing to scale to full production. To successfully implement AI, organizations must lay a foundation for automation, including connected data ecosystems, edge-to-cloud computing, digital twins and robotics.
In manufacturing, agentic AI refers to autonomous software systems that monitor real-time shop floor conditions, reason through operational goals and carry out complex workflows, typically within human-defined boundaries and with human oversight at key decision points.
While agentic AI has enormous potential benefits, it also gives IT systems more access than ever to physical assets, necessitating strong security controls and governance practices. Organizations can reduce risk by pursuing network segmentation, zero-trust security, data governance and continuous monitoring, and by enforcing strict compliance with data safety regulations. The organizations that see the greatest success with AI and automation are typically those that begin with high-value applications and take care to meticulously measure business impact, rather than those that race to adopt high-profile technologies.
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Before manufacturers can deploy agentic technologies at scale, they need a modern technology foundation that supports visibility, connectivity and trusted data across the enterprise. Modern networking, security and IT/OT convergence are all foundational elements that should be in place before considering next steps.
Connected Data Ecosystems: Across industries, organizations have seen their early AI initiatives stall in the pilot stage due to disconnected data environments. In manufacturing, this problem often presents as “islands of automation,” with isolated solutions producing data silos that limit visibility across operations. Through sensors and unified data platforms, organizations can bring IT and OT data together, breaking down barriers between enterprise systems, production equipment and supply chain applications. By connecting data ecosystems, leaders can prepare their environments for AI solutions that can identify hidden trends and produce actionable insights.
Edge-to-Cloud Computing: The debate about where to place compute power is essentially over, with most organizations landing on a hybrid model that leverages on-premises infrastructure, cloud resources and edge computing capabilities. In manufacturing, organizations often separate insights that require real-time action at the edge from those that need further analysis. Also, manufacturing data is increasingly distributed across endpoints, users and operations, further increasing the need for edge solutions that can reduce bottlenecks and improve performance for mission-critical workloads. Networking upgrades may be needed to ensure that connections between these environments do not introduce latency or security issues.
Digital Twins: By simulating real-world physical environments in a low-stakes digital setting, digital twins let manufacturers take a “trust, but verify” approach to automation. These visual representations of assets and processes allow organizations to quickly test scenarios, predict outcomes and optimize operations before dedicating significant time and resources to efforts that are unlikely to provide value. According to Rockwell Automation’s 2026 State of Smart Manufacturing Report, 69% of surveyed organizations have either already invested in digital twins or plan to do so within the next year.
Robotics: Fixed robotic systems have long been a presence within many manufacturing plants, helping to increase throughput and ensure consistency on assembly lines. But increasingly, manufacturers are also looking to autonomous mobile robots that can move materials throughout facilities and perform inspections. While robots can create new efficiencies for manufacturers, they also make facilities even more dependent on robust connectivity. “These systems rely on a constant stream of data to function, and they are highly sensitive to even micro-seconds of latency,” notes Cisco in a 2026 report. “When the wireless network falters, the physical production line halts.”
Automated Operations: Manufacturing will always depend on human labor and insights. But by automating significant portions of their operations, organizations can reduce downtime, improve consistency and free up employees for higher-value tasks. Ideally, automation will compress the time it takes manufacturers to collect, analyze and act on information. Most automation efforts will start with automated insights and recommendations before moving on to autonomous decision-making.
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According to a 2025 study conducted by the Manufacturers Alliance Foundation and CDW, 71% of manufacturers have already started their IT/OT convergence journey, driven by security concerns and the need for innovation capabilities.
Among the report’s findings:
Companies with mature IT/OT convergence are six times more likely than others to offer job rotation programs that cover both IT and OT functions.
Among companies with mature IT/OT convergence, 73% of respondents say teams effectively share resources such as budget and technology, compared with just 26% of companies with less mature convergence.
Respondents from companies with mature IT/OT convergence are more than twice as likely to express confidence in their ability to respond to data breaches, ransomware attacks and disruption of critical operations.
While network segmentation can prevent the lateral movement of threats across IT and OT networks, less than half (46%) of surveyed manufacturers have begun using segmentation in their OT network security programs.
Agentic AI gives IT systems unprecedented control over physical assets. While most agentic workflows will likely be accompanied by a “human in the loop,” IT leaders must take great care to ensure that new tools do not expose critical infrastructure to cyberthreats and operational disruptions.
Network Segmentation: The convergence of IT and OT requires consistent segmentation to prevent compromised users, devices or AI agents from becoming launching pads that allow attackers to move freely across operational environments. Segmentation should isolate critical production systems so that a breach in one part of the environment does not disrupt operations or reach systems that could jeopardize safety if compromised. In addition to promoting safety, network segmentation can preserve operational resilience by allowing raw data and real-time decisions to remain close to the production environment.
Zero-Trust Security: If they have not already done so, manufacturers should move beyond perimeter-based security and instead adopt a zero-trust approach. In a zero-trust environment, every employee, device and AI agent must be verified before it can access corporate networks, systems and data. Zero trust is especially important as AI expands the number of endpoints, machine-to-machine connections and data flows that security teams must govern. As organizations grow their AI environments, they must grant AI agents only the access and authority required for their defined operational roles.
Data Governance: IT leaders already know that AI outputs are only as good as the data used to train AI systems. However, many organizations lack clear governance policies for data quality, ownership, access and appropriate use. Manufacturers should undertake efforts to standardize, connect and govern data from both OT and IT devices, laying a data foundation that will support AI solutions, yield better insights, improve operational efficiency and ensure compliance with data safety regulations.
Continuous Monitoring: When organizations continuously monitor their environments, they can detect threats earlier, increasing the chances that they will be able to neutralize them before attackers are able to access critical systems and data. In a manufacturing setting, monitoring practices should go beyond conventional cyber alerts and identify whether operational conditions are drifting outside intended margins. AI solutions increase the number of endpoints and data flows in manufacturing environments, making it harder to maintain coherent policies and detect anomalies before they cause disruption. However, security vendors are also leveraging AI in their monitoring tools, helping to reduce false alarms and more quickly identify true threats.
Compliance Readiness: Thanks to global regulations such as the European Union’s General Data Protection Regulation, data location and sovereignty requirements have become an important component of operations for organizations across industries. Manufacturers must adopt regulatory-compliant policies documenting how operational data is used, where AI may act autonomously, when humans must intervene and who remains accountable for outcomes. Rather than treating compliance as a one-time certification, organizations should conduct recurring assessments.
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Unlike traditional analytics tools, agentic AI can make real-time operational decisions that have consequences in the physical world. Leaders must implement appropriate policies around data, visibility, security and governance to ensure these solutions are as accurate and reliable as possible.
Is operational data accurate and accessible? According to KPMG, 76% of manufacturing executives say that insufficiently reliable data is one of the top expected AI risks over the next two years.
Are IT and OT teams collaborating? Agentic AI solutions will draw data from IT and OT systems, with impacts on both the digital and physical worlds. Efforts will be more successful when IT and OT teams work together toward shared goals.
Are governance policies clearly defined? Manufacturers need strong policies for data quality, ownership and use, as well as frameworks that define situations where autonomous decision-making is appropriate and where human oversight is required.
What are the cybersecurity risks? Often, organizations lack a comprehensive inventory of their connected assets. Manufacturers should undertake asset discovery and implement security measures such as network segmentation to ensure that OT assets are as protected as IT systems.
Organizations that successfully combine infrastructure, security and data readiness — while prioritizing business impact over technology — can begin scaling toward increasingly autonomous operations.
Start With High-Value Use Cases: With conferences, news headlines and boardrooms all buzzing about AI, leaders may understandably be tempted to implement trendy, high-profile use cases. This is the wrong approach. As with any other technology, investments in AI should be guided by business value. In manufacturing, this often means a focus on predictive maintenance, quality monitoring and workforce productivity improvements. These are not only valuable outcomes but also can be accurately measured to quickly validate use cases. After scaling these early efforts, manufacturers can apply the lessons from these investments to additional pilots.
Modernize in Phases: Organizations that use a phased roadmap to implement AI will be positioned to prove value, limit production risk and scale successful pilots across the enterprise. A phased approach is especially important in manufacturing, where legacy business-critical technology may not always seamlessly integrate with AI solutions. Phased modernization should include pilots, but these pilots must be tied to business outcomes, with a realistic plan for wider deployment to prevent organizations from becoming permanently mired in pilot mode. In many automation journeys, AI will first produce business-critical insights, followed by simulation and validation, with solutions progressively taking on greater decision authority over time.
Empower the Workforce: Change management is a critical part of AI implementation. Often, workers worry that automation will replace their jobs, and organizations that do not address these concerns may see lower adoption and overall impact. Leaders should explain how automation will augment employee expertise and help workers to make better decisions in their roles. By taking time to gain buy-in from employees, organizations can leverage this expertise, giving employees an active role in shaping AI use cases. According to a Rockwell Automation report, half of manufacturers plan to repurpose existing workers in the next year as a result of their smart manufacturing investments. “Technology drives efficiency, but people drive outcomes,” the report states. “The organizations that succeed will be those that invest as much in workforce transformation as they do in digital capabilities.”
Measure Business Impact: Some organizations evaluate their AI programs by tracking adoption, activity or token consumption. However, these metrics only tell leaders how extensively AI is being used throughout their organizations, not how much value the technology is actually providing. Instead, organizations should track business objectives such as employee productivity, operational downtime and product quality. Also, any changes in security and resilience metrics may indicate whether AI solutions are opening new vulnerabilities. By establishing clear baselines and linking their AI investments to measurable outcomes, organizations can demonstrate value, identify unintended risks and determine which future investments will have the greatest potential impact.
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With decades of industry-specific, cross-vendor expertise, CDW’s experts can help manufacturers identify and close gaps in their IT environments to prepare for automated solutions, including agentic AI.
IT/OT Maturity Assessment: In this engagement, designed to provide manufacturers with recommendations on how to move forward with smart factory initiatives, CDW’s experts evaluate current technologies, IT/OT governance, process alignment, technology alignment, and security and compliance.
Manufacturing Transformation Workshop: Transformation workshops are designed to help organizations streamline processes, reduce costs and identify opportunities for new revenue streams. These engagements help leaders identify their data needs, infrastructure gaps and potential ROI before they implement transformation initiatives.
5D Security Assessment: CDW’s proprietary 5D Security Assessment was developed specifically to address security gaps in IoT and OT environments. The assessment covers detection of threats, definition of roles and alert thresholds, decisions about tool selection, deployment and ongoing defense.
Infrastructure Modernization: CDW’s team of experts can assess existing environments and future needs to design the right combination of on-premises, edge and cloud-based solutions to support automation.
Jill Klein
Head of Emerging Technology and IoT
Oscar De Leon
IoT Strategist