2026
Industrial Technology Index

Companies have moved beyond the experimentation phase with AI. The TE Connectivity 2026 Industrial Technology Index, our annual look at the state of engineering innovation, finds that 82% of companies have now adopted AI to some degree – 35% extensively. That’s up double digits from last year, when 69% said their companies had adopted AI to some degree, and only 22% extensively.

Yet this expanded use of AI comes with a notable shift in the overall objectives of these companies: For the first time in the four years that TE has commissioned this survey, businesses are prioritizing financial goals over product innovation. This pivot toward a focus on the bottom line could create friction between engineers seeking transformative, strategic innovations and company executives focused more on incremental changes and operational efficiencies.

If companies bridge that gap, they will put themselves on a surer path toward supporting innovation leadership with AI technology. Fortunately, industry’s experience implementing automation initiatives offers a proven model for aligning engineering and executive priorities, showing how businesses can deploy AI to advance innovation and deliver financial results.