AI innovation, green agendas, and a lack of skilled talent are driving changes in how industries grow.

A new study by GlobalLogic, a Hitachi Group company, in collaboration with HFS Research, reveals a growing gap between industrial leaders’ strategic ambitions and their ability to execute on AI, sustainability, and workforce modernization efforts. Despite strong commitment from executives to modernize operations, skills shortages, legacy technology, and misaligned priorities are slowing progress across major industrial sectors including automotive, aerospace, chemicals, energy and utilities, and construction.

The research draws on insights from more than 100 senior executives from billion-dollar enterprises, showing that while industries broadly agree AI and sustainability are essential for future competitiveness, a lack of talent, weak integration strategies, and outdated systems are limiting measurable results.

According to the report, more than half of organizations identify talent gaps as the leading cause of AI and tech initiative failures, with many struggling to recruit or upskill workers with digital and AI expertise. Simultaneously, nearly half of respondents note that integrating new technologies with legacy systems is a major barrier to transformation.

The study also highlights shifting priorities: although reducing operational costs remains a top concern today, industrial leaders expect AI adoption and operational optimization to become central strategic drivers within the next two years. Additionally, industry perceptions—such as limited career mobility and a lack of innovative image—are exacerbating talent pipeline challenges.

To accelerate transformation, the report recommends creating integrated transformation plans, prioritizing talent development and human-AI collaboration, modernizing system architectures, and establishing transparent career and performance metrics.