(Aras: Andover, MA) -- Aras, a leader in product life cycle management (PLM) and digital thread solutions, has shared key findings about the adoption of artificial intelligence (AI) in product development in its new report, “The Future of Product Life Cycle Management and Digital Engineering.”

The research found that the adoption of AI is already affecting the future of product development and manufacturing. For example, 80% of companies are already integrating AI in their product development processes. And 91% of companies are planning to increase their investment in AI during the next two years.

“Incorporating AI into product development isn’t just about keeping up—it’s about staying ahead,” says Roque Martin, CEO of Aras. “Aras enables AI-driven innovation with secure, governed integration, ensuring insights are accessible only to authorized users. This empowers manufacturers to harness AI and advanced analytics to design smarter, more-connected products while protecting their intellectual property.”

The research also highlights the key challenges in product development that are driving the shift to AI:
• 35% of companies cite production costs as their biggest hurdle
• 34% struggle with product complexity
• 33% are concerned about regulatory compliance and accelerating time to market
• 32% point to sustainability and AI’s growing role in strategic planning

Enthusiasm for AI grows

Commitment to investment in AI for product development is strongest in the United States, where 98% of companies plan to expand their use of AI during the next two years, compared to just 70% in Japan and 92% in the DACH region (Germany, Austria, and Switzerland). This momentum reflects the growing effects of AI in areas such as process optimization, workflow automation, generative design, and market forecasting.

The survey also reveals that 88% of companies believe they should invest more in product development software, with the U.S. and DACH regions again showing significantly more interest than Japan. France is the most forward-looking country, with 95% of companies saying they should increase spending in this area.

Despite the widespread enthusiasm, challenges remain. Security and intellectual property concerns top the list at 69%, while 65% of manufacturers say they lack the skills to fully leverage AI, and 64% report that they struggle with siloed data.

Success requires more than technology—it demands a fundamental shift in how digital transformation is approached. AI alone is not a silver bullet. Companies must break down data silos, invest in workforce upskilling, and build flexibility into every stage of the product life cycle to achieve meaningful results. 

AI makes the difference

AI plays a central role in product development, giving early adopters a competitive advantage in terms of cost, complexity, and compliance. However, successful AI integration depends on seamless data sharing and collaboration across departments. A flexible PLM solution, combined with a strong digital thread, provides the necessary foundation for effective AI implementation, unlocking a real competitive advantage. Organizations that delay adoption risk falling behind and struggling to catch up. 

About the survey

“The Future of Product Life Cycle Management and Digital Engineering” is a survey based on insights from 656 executives in Europe, the U.S., and Japan. It examines how leading automotive, aerospace, and machinery manufacturers (revenues above $40 million) are addressing AI adoption, digital thread integration, regulatory compliance, and more.

Download the full report here.