TE Connectivity (” TE “), a global industry technology leader, has released its 2024 Industry Technology Index. TE surveyed 1,000 respondents from a variety of industries in China, Germany, India, Japan and the United States. Based on the findings, TE released its second annual report on the state of exploring innovation.

From the perspective of engineers and executives around the world, the report examines how AI is being perceived by employees as the most effective tool for driving innovation and development today. Employees in different roles in the enterprise have different attitudes toward AI, which determines how the enterprise should effectively promote AI transformation.

Report highlights

TC-FPCXX2  Although AI is still an emerging technology, it has quickly become a focal point for technology companies. The report’s survey found that 70% of engineers and 78% of executives ranked AI as one of their investment priorities over the next three years, scoring higher than other technologies such as renewable energy and data connectivity.

To maximize the impact of these investments, companies must develop a clear AI integration strategy. A successful strategy will include engineers and executives agreeing on the division of responsibilities for implementing AI, as well as scheduling targeted training and skills enhancement programs to build AI skills in internal teams.

Companies that follow this strategy are more likely to gain an AI advantage in their innovation practices. Companies that struggle to build consensus between engineers and executives, or fail to invest in the training they need, risk falling behind their peers.

The survey results show that executives and engineers are divided when it comes to implementing AI. Three-quarters of executives believe that engineers should be responsible for driving AI implementation; However, 68 percent of engineers want leadership to develop a clearer implementation plan.

Respondents in the Chinese market are particularly optimistic about the integration of AI within the enterprise and understand the competitive advantage AI will bring. But at the same time, Chinese engineers are more concerned about whether their companies can use AI responsibly.

More than 80 percent of both groups said they were optimistic about their ability to integrate AI into their businesses. Engineers and executives also agree that accelerating AI adoption will have clear benefits, such as increased efficiency and productivity, improved data analytics, and enhanced decision making, which will increase their ability to innovate.

However, levels of optimism vary by age and geography. Globally, 84 percent of young engineers (Gen Z and millennials) are optimistic about AI integration within their organizations, compared to 74 percent of Gen X and Baby Boomer engineers.

Of the countries surveyed in the report, engineers and executives in China are the most confident about integrating AI into their businesses (Chinese respondents -90%vs. Global respondents -70%). However, Chinese engineers are also more concerned that AI will replace their jobs (Chinese engineers -45%vs. Global respondents -26%).

TC-FPCXX2  On the other hand, only 57% of German engineers and executives are very confident in their ability to integrate AI. The percentage of respondents in Japan and the United States who are confident in their own abilities is also lower than the global average of 70%.

The Chinese market is one of the most confident in the integration of AI into the enterprise. Engineers in China are more likely than the global level to see AI as a very helpful skill for their career development, with 88% of them saying so, compared to around 76% globally.

While Chinese engineers and executives are the most optimistic about AI technology, they also have the most concerns compared to global levels.

Two interesting percentages can be seen, one is that 45% of engineers in China are worried about their jobs being replaced by AI, compared to only 26% globally. Moreover, Chinese engineers are more concerned than the global level about their companies’ ability to apply AI technology responsibly.

The engineers and executives who participated in the survey had a clear understanding of the future path of AI. They all agree that AI-related training and skills enhancement activities can help overcome technical challenges, while the reverse slows down implementation.

Given the widespread belief that AI will soon become a key technology. 79% of respondents in both groups also expect to invest more in AI training over the next three years. Companies that schedule these training programs will be better able to harness the potential of AI to accelerate innovation. Companies that fail to make these investments risk losing engineering talent and falling behind competitors.

AI creates entirely new jobs (such as machine learning engineers or data product managers) to implement and maintain AI solutions. Existing roles must continue to evolve and upgrade to incorporate new content enabled by AI business models to drive digital transformation.

The adoption of innovative technologies helps drive business success. However, when faced with a range of emerging technologies, respondents identified AI as one of the two technologies their organizations are least ready to integrate into their operations.

The rapid advance of AI has left many engineers and executives feeling that their existing skills are lagging behind. Both groups cited a lack of internal AI knowledge and experience as the reason they struggled to integrate.

The other technology that companies feel least ready to integrate – 3D printing – has had a viable commercial option compared to AI for many years. Given the importance of AI in transforming the innovation process, it will be interesting to see whether integrating AI within an enterprise will remain a challenge for businesses years from now, like 3D printing.