Arthur D. Little Study Establishes Precise Impact of AI on Development and Engineering and Outlines Concrete Actions to Drive Success

Harnessing AI will transform development and engineering functions – but success requires organizations to reshape themselves. That is one of key findings of a major Arthur D. Little (ADL) report, which highlights how AI can contribute to 25% growth and 60% productivity gains by 2030 across the innovation cycle, and provides concrete actions for companies to take now.

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The in-depth, comprehensive study, carried out with NAE (Netherlands Academy of Engineering), IVA (Royal Swedish Academy of Engineering Sciences), and KIVI (Koninklijk Instutuut van Ingenieurs), is based on information from over 900 AI and technology case studies, multiple hands-on projects, and survey feedback from 95 respondents across industries including high-tech, manufacturing, processing, pharmaceuticals and healthcare, defense, energy, and logistics.

Driven by changing customer demands that increase complexity, stricter regulatory requirements, and a fundamental shift from products to heterogenous solutions built on diverse technological domains, development and engineering must transform. Doing nothing is not an option.

AI is central to addressing these challenges, and the study has captured and curated a highly mature ecosystem of over 3,500 solution providers. This unique database helps show the complete field of possibilities for development and engineering teams. However, to maximize impact, AI tools must be deployed in conjunction with new ways of working – adopting a people-centric approach is vital. This requires organizations to develop capabilities, encourage appropriate mindsets, and enhance trust in AI’s reliability, explainability, and security.

The report outlines actionable recommendations, including a roadmap for embedding AI in development and engineering. This starts by building a balanced portfolio of AI applications, which should then be actioned using the Networked Lab of the Future, a four-step transformation approach. This includes empowering people through the adoption of AI (democratization) and leveraging internal and external data (data collaboration) to drive success.

Michaël Kolk, Managing Partner and Global Innovation Practice Leader at Arthur D. Little, comments: “Development and engineering is transforming, requiring new ways of working and new skills and capabilities. AI underpins this. While many high level reports outline AI’s theoretical potential, our study goes further, providing tangible actions that organizations can take now to realize the benefits of AI integration.”

Download the report here: https://tinyurl.com/5a52ed8c

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