The Adoption of Industrial AI in America

Kristina McElheran, Mu-Jeung Yang, Zachary Kroff and Erik Brynjolfsson

AEA Papers and Proceedings, 2026, vol. 116, 20-25

Abstract: Using a mandatory, purpose-designed Census Bureau survey of approximately 28,500 establishments, we provide new evidence on industrial AI adoption in US manufacturing. Despite widespread digitization, only 22.8 percent of plants report any AI use as of 2021; intensity-weighted adoption is far lower. Adoption correlates with more-recent digital infrastructure—cloud computing and predictive analytics—rather than legacy on-premises IT or descriptive analytics. Structured production-process management and size are significant predictors. Cost and lack of applicable use case are the most cited barriers, followed by expertise. Prior productivity does not predict use, pointing to organizational readiness as a key barrier to AI diffusion.

JEL-codes: C45 D22 L25 L60 M15 O32 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1257/pandp.20261033

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