A sponsored research report from MIT Technology Review Insights, in partnership with L&T Technology Services, examines how product engineering organizations are adopting AI in physical systems. Based on a survey of 300 respondents, key findings show that 90% of engineering leaders plan to increase AI investment in the next 1-2 years, though growth is modest (45% plan increases of up to 25%). Predictive analytics and AI-powered simulation are top near-term investment priorities. In physical engineering contexts where errors have real-world consequences, layered AI systems with strict verification, governance, and human accountability are preferred over general-purpose deployments. Sustainability and product quality are the top measurable outcomes prioritized over speed-to-market or cost reduction.
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