Manufacturers Are Racing Into AI and Smart Factories. Cybersecurity Is Becoming the New Brand Test

U.S. manufacturers are moving fast into Industry 4.0, but the cyber risk is moving with them.

A new report from Integris finds that manufacturers are rapidly adopting cloud infrastructure, AI, robotics, automation, and smart factory systems, even as many report serious security incidents across email, mobile devices, cloud environments, and databases.

The findings suggest that the next phase of manufacturing competition will not be defined only by who can automate the fastest. It will also be defined by who can prove they can secure the digital systems now running the factory floor.

The 2026 Integris manufacturing technology and cybersecurity report surveyed 411 U.S. manufacturing executives and 600 consumers. The results show an industry investing heavily in modernization while facing an expanding attack surface. Sixty percent of manufacturing executives said their organization experienced a significant email-based security breach in the past 12 months. Forty-nine percent reported a significant mobile device breach. Thirty-eight percent reported a cloud or infrastructure breach, while 32% reported a database breach.

Those numbers are striking because most manufacturers are not ignoring cybersecurity. According to the report, 84% have security awareness training programs in place. Fifty-six percent use secure email gateways, and 51% use AI-powered anti-phishing tools. The problem is that the factory itself is becoming more connected, more cloud-dependent, and more exposed.

"What stands out in this year's findings is the growing complexity manufacturers face as they balance modernization, operational efficiency, and cyber risk," said Kyle Wewe, chief revenue officer at Integris. "The organizations seeing the most success aren’t the ones adopting more technology. They’re aligning strategy and the right partner to help ensure technology investments support business goals, strengthen resilience, and keep operations running smoothly."

The modernization push is broad. Forty-four percent of manufacturers have deployed robotics and automation systems. Another 44% use AI and machine learning for predictive maintenance. Forty-five percent have smart energy management systems, 40% use real-time monitoring systems, and 37% have deployed Industrial Internet of Things technology. A quarter are using digital twins.

Cloud has become the foundation for much of that shift. The report found that 43% of manufacturers use hybrid cloud environments, while 88% rely on managed IT services to operate cloud infrastructure. Manufacturers are also evaluating cloud differently than they did in previous technology cycles. Efficiency was the top cloud return-on-investment driver at 60%, followed by agility and speed to market at 55%. Cost reduction ranked third at 47%.

That shift matters. It shows manufacturers are not only looking for cheaper operations. They are trying to build more adaptive businesses that can respond quickly to supply chain shocks, demand changes, equipment failures, and competitive pressure. But adaptive manufacturing also requires a larger digital footprint, more third-party connections, more data movement, and more potential entry points for attackers.

AI is now part of both the opportunity and the defense strategy. Fifty-seven percent of manufacturers use AI in vulnerability management, while 61% use AI-powered automated vulnerability scanning and 50% use AI to prioritize security alerts and patch deployment. At the same time, 36% of executives cite AI implementation as a top challenge, showing that adoption is moving faster than governance, integration, and talent development.

Consumers are noticing the risk. The report found that 83% of consumers are concerned about cybersecurity risks affecting manufacturers, and 89% believe manufacturers should disclose security breaches. Sixty percent said a data breach would reduce their trust in a manufacturer, while another 60% said they would stop buying from a manufacturer that failed to protect their data. One in four consumers said they have already stopped buying from a manufacturer because of security concerns.

Cybersecurity is also beginning to shape purchasing decisions. Consumers ranked data security third among their top buying factors at 32%, behind price and quality, but ahead of brand reputation. For manufacturers that sell directly to consumers, the finding is especially important. Security is no longer invisible infrastructure. It is becoming part of the product experience.

The report also reveals a perception gap. When consumers were asked which manufacturers they associate with technological advancement, they largely named consumer-facing technology brands, including Apple, Tesla, and Amazon. Traditional industrial manufacturers were far less visible. Two-thirds of consumers said this perception makes them more likely to buy, suggesting that manufacturers have an opportunity to turn secure innovation into a competitive advantage if they communicate it clearly.

For manufacturers, the message is becoming harder to ignore. Smart factories promise faster production, better quality, predictive maintenance, energy savings, and more resilient supply chains. But every connected device, cloud workload, mobile endpoint, and AI system also changes the risk model.

The manufacturers that win the next phase of Industry 4.0 may not be the ones that simply deploy the most advanced technology. They may be the ones that can show customers, partners, and regulators that innovation and cybersecurity are moving together.