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

arXiv: https://arxiv.org/abs/2604.09633 · HTML: https://mlsanity.com/paper/2604.09633/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Software engineering coding agents, one of 16 directions in LLM agents and tool use.
- Builds on 9 of its 42 references that are in the map.
- First posted on arXiv 19 Mar 2026.

## Placed in

- LLM agents and tool use / [Software engineering coding agents](https://mlsanity.com/agents/software-engineering-coding-agents/)

## Builds on (most cited first, 9 of 9)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [Physics-informed neural networks (PINNs) for fluid mechanics: A review](https://mlsanity.com/paper/2105.09506/) (2021)
- [Generative AI](https://mlsanity.com/paper/2309.07930/) (2023)
- [From Concept to Manufacturing: Evaluating Vision-Language Models for Engineering Design](https://mlsanity.com/paper/2311.12668/) (2023)
- [CAD-Coder: An Open-Source Vision-Language Model for Computer-Aided Design Code Generation](https://mlsanity.com/paper/2505.14646/) (2025)
- [GenCAD: Image-Conditioned Computer-Aided Design Generation with Transformer-Based Contrastive Representation and Diffusion Priors](https://mlsanity.com/paper/2409.16294/) (2024)
- [The emergence of Large Language Models (LLM) as a tool in literature reviews: an LLM automated systematic review](https://mlsanity.com/paper/2409.04600/) (2024)
- [Sketch2Prototype: Rapid Conceptual Design Exploration and Prototyping with Generative AI](https://mlsanity.com/paper/2405.12985/) (2024)
- [AiBAT: Artificial Intelligence/Instructions for Build, Assembly, and Test](https://mlsanity.com/paper/2410.02955/) (2024)

## Abstract (arXiv)

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.