Production costs, product complexity and maintaining compliance among biggest challenges

ANDOVER, Mass. - March 20, 2025 - Aras, a leader in product lifecycle management (PLM) and digital thread solutions, today shared key findings about the adoption of artificial intelligence (AI) in product development from its new report, "The Future of Product Lifecycle Management and Digital Engineering."

The research found that the adoption of AI is already having an impact on the future of product development and manufacturing:
• 80% of companies are already integrating AI into their product development processes
• 91% of companies are planning to increase their investment in AI over 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, while regulatory compliance and accelerating time-to-market each concern 33% of respondents. Sustainability remains important, with 32% of companies pointing to its 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 over the next two years, compared to just 70% in Japan and 92% in the DACH region. This momentum reflects the growing impact 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 do 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 lifecycle 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 2025 Global Industry Survey
"The Future of Product Lifecycle Management and Digital Engineering" is a survey based on insights from 656 executives in Europe, the US, and Japan. It examines how leading automotive, aerospace, and machinery manufacturers (revenues >$40M) are addressing AI adoption, digital thread integration, regulatory compliance, and more. Download the full report here.

About Aras
Aras is a leading provider of product lifecycle management and digital thread solutions. Its technology enables the rapid delivery of flexible solutions built on a powerful digital thread backbone and a low-code development platform. Aras' platform and product lifecycle management applications connect users in all disciplines and functions to critical product data and processes across the lifecycle and throughout the extended supply chain. Visit www.aras.com to learn more and follow Aras on YouTube, X, Facebook, and LinkedIn.