B2 News Operations & Logistics · May 22, 2026

Data is the ‘number one challenge’ as manufacturing tech evolves

Manufacturing executives warn that too much unconnected data is slowing down AI and automation progress.

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Manufacturing executives from Ford, Amgen, ArcelorMittal, and others gathered at MIT earlier this month with a surprisingly candid message: the biggest headache in modern manufacturing isn't robots or AI — it's data. As factories digitize and automate at speed, they're drowning in signals they don't yet know how to use.

Magna International CEO Swamy Kotagiri put it bluntly: "Automation, AI, analytics — by themselves, do not create value. They'll only create value when they're applied to a well-defined problem. Otherwise, you're experimenting, not transforming." Ford's Yung Fung echoed this, warning that every robot and AI system on the factory floor produces a signal, and too much data without connectivity between those signals is more of a burden than an asset.

Managing these disparate sources of data is an ongoing task, and manufacturers are getting serious about it. Carpenter Technology, a global alloys maker, hired its first chief digital officer back in 2021 specifically to tackle the challenge of data standardization across its operations.

The consensus from the MIT event was clear: the tools exist, but strategy matters more than technology. Companies that rush to adopt AI without first defining the problem risk wasting enormous resources. The manufacturers winning this race aren't necessarily the ones with the most data — they're the ones who know exactly what to do with it.

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📚 Key vocabulary

digitize (verb)
to convert processes, records, or operations into a digital format managed by computers
"The factory spent two years digitizing its quality control records to improve efficiency."
disparate (adj)
very different from each other and not easily compared or connected
"Combining disparate data systems from three different sites proved more difficult than expected."
standardization (noun)
the process of making things consistent and uniform across an organization or industry
"Data standardization across all production sites allowed the team to compare performance accurately."
connectivity (noun)
the ability of different systems, machines, or data sources to communicate and share information with each other
"Better connectivity between machines on the production line helped reduce unexpected downtime."
well-defined (adj)
clearly described and with precise boundaries or goals, leaving little room for confusion
"The project succeeded because the team started with a well-defined objective rather than a vague idea."

✨ Useful phrases for this topic

"too much data without connectivity"
Use this when describing a situation where information exists in large quantities but different systems or teams can't share or link it effectively.
"We have sensors on every machine, but too much data without connectivity between systems means we still can't predict failures reliably."
"data standardization across operations"
Use this when discussing the challenge or goal of making data formats and definitions consistent throughout a company or supply chain.
"Before we could use any AI tools, we had to achieve data standardization across operations in all five of our plants."
"apply it to a well-defined problem"
Use this to argue that technology or resources only deliver results when focused on a specific, clearly understood challenge.
"We wasted months on that AI pilot because we didn't apply it to a well-defined problem from the start."

Advanced sentence structures

Patterns from this article you can use in meetings, emails, and everyday English

Structure 1

In context

Automation, AI, analytics ... by themselves, do not create value ... they'll only create value when they're applied to a well-defined problem.

The skeleton

Frame: [Thing/Things] will only [verb phrase] when [subject] [is/are] [past participle] to [a/an + adjective + noun].

What it does: Sets a condition that must be met before something produces a result.

Quick swap: "New software will only save time when it is applied to a clearly identified workflow."

More examples

  • "Employee training will only produce results when it is applied to a specific performance gap."
  • "A marketing budget will only generate returns when it is directed toward a well-researched audience."
  • "Flexible working policies will only reduce stress when they are applied to a realistic daily schedule."

Easy exercise

Arrange the words and add the missing structural elements to build a correct sentence.

  1. factory robots · will only · increase output · when they are · connected to · a well-managed system
  2. feedback from customers · will only · improve the product · when it is · applied to · a clearly defined design process
Show answers
  • "Factory robots will only increase output when they are connected to a well-managed system."
  • "Feedback from customers will only improve the product when it is applied to a clearly defined design process."

Open exercise

Write your own sentence using this structure. You can write about anything — here are some ideas if you need them:

  • How AI or automation is used in an industry you know
  • A tool or process used in your workplace
  • A habit or routine in everyday life

One possible answer: "A personal budget will only reduce debt when it is applied to a well-organised spending plan."

Structure 2

In context

Ford and other manufacturers described throughout the event how managing these disparate sources of data is an ongoing task.

The skeleton

Frame: [Verb+ing] [these/this/the + adjective + noun phrase] is [a/an + adjective + noun].

What it does: Turns an action into the subject of a sentence to give it weight and importance.

Quick swap: "Coordinating these overlapping project deadlines is a significant challenge for most teams."

More examples

  • "Balancing these competing priorities is a constant struggle for mid-level managers."
  • "Interpreting these complex legal requirements is a time-consuming process for small businesses."
  • "Maintaining these long-distance professional relationships is an essential part of global collaboration."

Easy exercise

Arrange the words and add the missing structural elements to build a correct sentence.

  1. integrating · these multiple data systems · is · a critical step · for modern manufacturers
  2. navigating · these rapidly changing regulations · is · an ongoing responsibility · for compliance teams
Show answers
  • "Integrating these multiple data systems is a critical step for modern manufacturers."
  • "Navigating these rapidly changing regulations is an ongoing responsibility for compliance teams."

Open exercise

Write your own sentence using this structure. You can write about anything — here are some ideas if you need them:

  • A challenge related to technology or data in a workplace
  • Managing different responsibilities or roles
  • Handling information or communication in daily life

One possible answer: "Organising these overlapping social commitments is a surprisingly stressful part of modern life."

💬 Discussion questions

1

Think about your own workplace — what kind of data does your team collect, and do you feel it's actually used effectively?

2

Magna's CEO says companies that use AI without a clear problem to solve are 'experimenting, not transforming.' Do you agree, or is experimentation a valuable part of innovation?

3

If your company hired a chief digital officer tomorrow, what would you want their first priority to be, and why?

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