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Survey: AI disconnect between engineers and leaders

A TE Connectivity survey finds that engineers and executives do not agree on who should lead in AI and sustainability planning.

While engineers and executives at technology companies are optimistic about artificial intelligence (AI) and sustainability, they do not agree on who should lead those innovations, according to TE Connectivity’s 2024 Industrial Technology Index. The state of innovation report, now in its second year, surveyed 1,000 engineers and executives, representing a range of industries in China, Germany, India, Japan and the United States.

However, both engineers and executives agree on top priorities at their organizations. Fifty-four percent of engineers and 55% of executives ranked product innovation as their top priority, followed by internal sustainability (46% for both engineers and executives), AI adoption (38% for engineers and 39% for executives) and financial goals (38% for engineers and 39% for executives).

TE Connectivity's 2024 Industrial Technology Index chart on top priorities.

(Source: TE Connectivity)

This year’s survey focused heavily on AI and sustainability with an emphasis on how these “megatrends” are affecting the innovation process and how innovation is driving these companies into the future. The overall finding: There is still work to do to meet their goals.

Driving AI implementation

Both engineers (76%) and executives (84%) believe that AI will be a critical component of business operations within three years. However, there is a disconnect between engineers and executives in terms of who is responsible for leading AI implementation. Seventy-four percent of executives believe that engineers are responsible for driving AI implementation, while 68% of engineers believe that a clearer AI integration plan is needed from leadership.

TE Connectivity's 2024 Industrial Technology Index chart on value of AI skills.

(Source: TE Connectivity)

In addition, 21% of engineers believe a lack of proper AI training challenges effective implementation. Eighty-six percent of executives agree that continuous training/upskilling related to AI is essential for engineers.

The survey also finds that AI has become a focus for technology organizations. Seventy percent of engineers and 78% of executives named AI as one of their top investment priorities over the next three years, outpacing other technologies such as renewable energy (51% for engineers and 53% for executives) and data connectivity (65% for engineers and 62% for executives).

TE Connectivity's 2024 Industrial Technology Index chart on top investement areas.

(Source: TE Connectivity)

More than 80% of both groups say they are optimistic about their ability to integrate AI into their organizations. They also agree that accelerating AI adoption will improve their innovation abilities by delivering benefits, such as increased efficiency and productivity, improved data analysis and enhanced decision-making capabilities.

But the level of optimism depends on age and geographic region. Globally, 84% of Gen Z and Millennial engineer respondents are optimistic about AI integration compared to 74% of Gen X and Baby Boomer engineers. China is the most confident at 90% compared to 70% globally. In the U.S. confidence drops to 65%.

However, when asked about emerging technologies, survey respondents cite AI as one of the two technologies that their organizations are least prepared to integrate into their operations.

Both engineers and executives report that AI (34%) and 3D printing (34%) are the technologies that they are least prepared to integrate, followed by 5G (31%), advanced analytics (26%) and automation (26%). Both groups cite a lack of internal knowledge and experience with AI as the reason they will struggle with integration, according to the report.

The survey also finds that 79% of both engineers and executives expect their company to invest more in AI training over the next three years. Organizations that deliver on those training plans will be in a better position to capitalize on AI’s potential to accelerate innovation, while laggards may lose engineering talent and fall behind their competition, according to the report.

Sustainability

Engineers (90%) and executives (91%) agree that sustainability is important to their organization. Eighty-seven percent of engineers say that it is personally important to them to support climate change solutions in their work, and 34% report they would leave their job if their company did not provide opportunities to support sustainable initiatives.

However, the survey reveals a disconnect in how engineers and executives feel about their sustainability efforts. Many global organizations have prioritized a set of internal sustainability goals to achieve by 2030, according to the report, but 70% of engineers think their organization’s leadership is too optimistic about reaching its sustainability goals in that timeframe.

The survey shows a five-point difference between engineers and executives when asked if they were satisfied with their organization’s sustainability plan.

TE Connectivity's 2024 Industrial Technology Index chart on sustainability goals.

(Source: TE Connectivity)

Also, there is disagreement over who is responsible for meeting sustainability goals. More than 70% of engineers report that their leaders have not provided clear direction on how to achieve sustainability goals, and another 47% said they often meet resistance from executives when they propose sustainable solutions. Yet, 69% of executives say that a lack of innovation from engineers is preventing progress toward sustainability goals.

The report identifies several key elements to help companies improve their strategic direction and provide the support that engineers need. This includes aligning engineers and executives on priorities to better position their companies to achieve success. Those elements for successful innovation include identifying opportunities, agreeing on achievable goals, defining responsibilities, collaborating on roadmaps, tracking/sharing progress, delivering ongoing training/upskilling and providing financial support for projects.

Click here for last year’s report on the state of innovation.

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