Insights for Managers About AI Adoption in New Product Development

OVERVIEW: The artificial intelligence (AI) revolution in new product development (NPD) has reached a critical juncture, demanding decisive action from business leaders. Our comprehensive study of key AI applications in NPD reveals a startling lack of adoption across industries, particularly in the United States. Despite the potential benefits, businesses also demonstrate weak intentions to adopt AI and low readiness regarding AI integration into NPD processes. Despite the low adoption rate, the study's results offer a compelling picture of AI's potential, including substantial positive impacts of AI use in key areas like product design, prototyping, testing, digital twin simulations, market analysis, and new product ideation. Benefits include accelerated development and markedly improved decision-making.