TE Connectivity
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TE Connectivity

2025
Industrial Technology Index

The Era of AI Innovation

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AI has reached an inflection point. Most organizations around the world (69%) have adopted AI technologies to some degree – with 22% saying they’ve already adopted AI extensively.

The TE Connectivity 2025 Industrial Technology Index uncovers how organizations are defining innovation, AI, and sustainability in a shifting industry landscape. Organizations report dealing with supply chain anxieties, training gaps, and a challenging global economy, while balancing cost-savings with long-term goals.

But with widespread industry collaboration and AI adoption, executives and engineers still see the opportunity to succeed. Ultimately, the 2025 report showcases the imperative of AI integration across all sectors to meet innovation and sustainability objectives effectively.

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Engineers from TE Company

Aligning on AI to Address Evolving Priorities

Engineers from TE Company

After some uncertainty revealed in our 2024 report – when executives saw AI as a game-changer, but engineers were more hesitant – there is now shared understanding of AI’s opportunities and challenges.

While AI adoption is widespread, its application remains uneven across industries and regions, often limited to basic tasks in many organizations. This uneven adoption is compounded by gaps in training and upskilling programs, with 42% of organizations globally lacking formal AI training initiatives. At the same time, industries are increasingly leveraging AI for advanced innovation and sustainability efforts, demonstrating interest in using AI to unlock efficiencies and address critical challenges.

Since last year, the business and economic climate has also changed. This year’s survey shows that financial goals currently rank higher than sustainability goals as organizational priorities, reflecting the impact of mounting economic pressures. Yet in the face of these challenges, organizations can place AI at the center of more cohesive innovation strategies.

In the sections ahead, we will examine these dynamics in detail – exploring how organizations are navigating financial needs, leveraging AI for industry-specific challenges, and addressing sustainability barriers to drive meaningful innovation.

AI adoption globally

To some extent
Extensively

China

70%

28%

Germany

65%

15%

India

73%

25%

Japan

75%

31%

United States

62%

15%

About the Survey

The TE Connectivity Industrial Technology Index is a third-party, independent research study that examines innovation culture within the industries shaping our world.

The online survey was taken by 1,000 engineers and executives at industrial engineering companies in China, Germany, India, Japan, and the U.S. It was designed to provide insights into how companies are managing critical innovation issues.

The survey was conducted between October 24 – November 21, 2024. Respondents worked in one of the following industries: wireless technology & 5G | data, cloud computing, and artificial intelligence | automotive and commercial transportation | commercial and home appliances | aerospace and defense | industrial machinery | medical devices and technology | energy solutions | sensor applications.