Agentic AI in Engineering and Manufacturing: Industry Perspectives on Utility, Adoption, Challenges, and Opportunities

This work examines how AI, especially agentic systems, is being adopted in engineering and manufacturing workflows, what value it provides today, and what is needed for broader deployment. This is an exploratory and qualitative state-of-practice study grounded in over 30 interviews across four stakeholder groups (large enterprises, small/medium firms, AI developers, and CAD/CAM/CAE vendors). We find that near-term AI gains cluster around structured, repetitive work and data-intensive synthesis, while higher-value agentic gains come from orchestrating multi-step workflows across tools. Adoption is constrained less by model capability than by fragmented and machine-unfriendly data, stringent security and regulatory requirements, and limited API-accessible legacy toolchains. Reliability, verification, and auditability are central requirements for adoption, driving human-in-the-loop frameworks and governance aligned with existing engineering reviews. Beyond technical barriers there are also organizational ones: a persistent AI literacy gap, cultural heterogeneity, and governance structures that have not yet caught up with agentic capabilities. Together, the findings point to a staged progression of AI utility from low-consequence assistance toward higher-order automation, as trust, infrastructure, and verification mature. This highlights key breakthroughs needed, including integration with traditional engineering tools and data types, robust verification frameworks, and improved spatial and physical reasoning.