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AI Makes U.S. Chemical Companies Leaner, More Innovative

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Information Services Group (ISG) has released a new report highlighting how U.S. chemical companies are leveraging artificial intelligence to enhance operations and innovation. The study reveals that chemical manufacturers have achieved up to 10% greater efficiency through GenAI-based tools, IoT sensors, and predictive maintenance.

Following market volatility since COVID-19, companies are implementing digital technologies to cut costs and streamline operations. Key technological adoptions include:

  • Cloud migration of legacy IT/OT systems
  • AI-powered monitoring and digital twins
  • GenAI for accelerating R&D and materials discovery
  • AI, IoT, and AR/VR for supply chain management

The report emphasizes the industry's focus on sustainability, with companies investing in end-to-end sustainability services to monitor waste and emissions while implementing circular economy practices like advanced recycling.

Information Services Group (ISG) ha pubblicato un nuovo rapporto che evidenzia come le aziende chimiche statunitensi stiano sfruttando l'intelligenza artificiale per migliorare le operazioni e l'innovazione. Lo studio rivela che i produttori chimici hanno raggiunto fino a 10% di maggiore efficienza grazie a strumenti basati su GenAI, sensori IoT e manutenzione predittiva.

In seguito alla volatilità del mercato dopo il COVID-19, le aziende stanno implementando tecnologie digitali per ridurre i costi e semplificare le operazioni. Le principali adozioni tecnologiche includono:

  • Migrazione al cloud dei sistemi IT/OT legacy
  • Monitoraggio potenziato dall'IA e gemelli digitali
  • GenAI per accelerare la R&S e la scoperta di materiali
  • IA, IoT e AR/VR per la gestione della catena di approvvigionamento

Il rapporto sottolinea l'attenzione dell'industria verso la sostenibilità, con le aziende che investono in servizi di sostenibilità end-to-end per monitorare rifiuti ed emissioni, implementando pratiche di economia circolare come il riciclo avanzato.

Information Services Group (ISG) ha lanzado un nuevo informe que destaca cómo las empresas químicas de EE. UU. están aprovechando la inteligencia artificial para mejorar sus operaciones e innovación. El estudio revela que los fabricantes químicos han logrado hasta un 10% más de eficiencia a través de herramientas basadas en GenAI, sensores IoT y mantenimiento predictivo.

Tras la volatilidad del mercado desde el COVID-19, las empresas están implementando tecnologías digitales para reducir costos y optimizar operaciones. Las principales adopciones tecnológicas incluyen:

  • Migración a la nube de sistemas IT/OT heredados
  • Monitoreo impulsado por IA y gemelos digitales
  • GenAI para acelerar I+D y descubrimiento de materiales
  • IA, IoT y AR/VR para la gestión de la cadena de suministro

El informe enfatiza el enfoque de la industria en la sostenibilidad, con empresas invirtiendo en servicios de sostenibilidad de extremo a extremo para monitorear residuos y emisiones, mientras implementan prácticas de economía circular como el reciclaje avanzado.

정보 서비스 그룹 (ISG)는 미국 화학 회사들이 인공지능을 활용하여 운영 및 혁신을 향상시키고 있다는 내용을 강조한 새로운 보고서를 발표했습니다. 이 연구는 화학 제조업체들이 GenAI 기반 도구, IoT 센서 및 예측 유지보수를 통해 최대 10% 더 높은 효율성을 달성했다는 것을 보여줍니다.

COVID-19 이후 시장의 변동성에 따라, 기업들은 비용 절감과 운영 간소화를 위해 디지털 기술을 구현하고 있습니다. 주요 기술 채택 사항은 다음과 같습니다:

  • 레거시 IT/OT 시스템의 클라우드 마이그레이션
  • AI 기반 모니터링 및 디지털 트윈
  • R&D 및 소재 발견 가속화를 위한 GenAI
  • 공급망 관리를 위한 AI, IoT 및 AR/VR

이 보고서는 산업이 지속 가능성에 중점을 두고 있으며, 기업들이 폐기물 및 배출 모니터링을 위해 엔드 투 엔드 지속 가능성 서비스에 투자하고, 고급 재활용과 같은 순환 경제 관행을 구현하고 있음을 강조합니다.

Information Services Group (ISG) a publié un nouveau rapport soulignant comment les entreprises chimiques américaines exploitent l'intelligence artificielle pour améliorer leurs opérations et leur innovation. L'étude révèle que les fabricants chimiques ont atteint jusqu'à 10% d'efficacité supplémentaire grâce à des outils basés sur GenAI, des capteurs IoT et une maintenance prédictive.

Suite à la volatilité du marché depuis le COVID-19, les entreprises mettent en œuvre des technologies numériques pour réduire les coûts et rationaliser les opérations. Les principales technologies adoptées incluent:

  • Migrations vers le cloud des systèmes IT/OT hérités
  • Surveillance alimentée par l'IA et jumeaux numériques
  • GenAI pour accélérer la R&D et la découverte de matériaux
  • IA, IoT et AR/VR pour la gestion de la chaîne d'approvisionnement

Le rapport souligne l'accent mis par l'industrie sur la durabilité, les entreprises investissant dans des services de durabilité de bout en bout pour surveiller les déchets et les émissions tout en mettant en œuvre des pratiques d'économie circulaire telles que le recyclage avancé.

Information Services Group (ISG) hat einen neuen Bericht veröffentlicht, der hervorhebt, wie US-Chemieunternehmen künstliche Intelligenz nutzen, um ihre Abläufe und Innovationen zu verbessern. Die Studie zeigt, dass chemische Hersteller durch GenAI-basierte Werkzeuge, IoT-Sensoren und vorausschauende Wartung bis zu 10% höhere Effizienz erreicht haben.

Nach der Marktvolatilität seit COVID-19 implementieren Unternehmen digitale Technologien, um Kosten zu senken und Abläufe zu optimieren. Zu den wichtigsten technologischen Annahmen gehören:

  • Cloud-Migration von Legacy-IT/OT-Systemen
  • KI-gestütztes Monitoring und digitale Zwillinge
  • GenAI zur Beschleunigung von F&E und Materialentdeckung
  • KI, IoT und AR/VR für das Lieferkettenmanagement

Der Bericht betont den Fokus der Branche auf Nachhaltigkeit, wobei Unternehmen in End-to-End-Nachhaltigkeitsdienste investieren, um Abfall und Emissionen zu überwachen und Praktiken der Kreislaufwirtschaft wie fortschrittliches Recycling umzusetzen.

Positive
  • Implementation of AI and IoT leading to 10% efficiency improvement
  • Successful automation of R&D processes through GenAI adoption
  • Enhanced supply chain management through AI-powered demand forecasting
  • Modernization of legacy systems through cloud migration
Negative
  • Industry facing high costs and overcapacity issues
  • Market volatility affecting production and revenue
  • Recent decline in demand due to end markets reducing inventory

Industry embracing automation, analytics to streamline operations,

reduce emissions, accelerate R&D, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Chemical producers in the U.S. are adopting GenAI and other new technologies to improve efficiency, innovation and sustainability, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens™ Agribusiness and Chemicals Services and Solutions report for the U.S. finds that the nation’s chemical industry, which strongly influences agribusiness as a source of fertilizers and other agricultural chemicals, has been affected by market volatility since the COVID-19 pandemic. Production and revenue suddenly fell, then recovered with rising demand, and more recently declined again as end markets reduced inventory. Over the last two years, chemical manufacturers have been cutting costs through efficiency, partly by implementing new technologies.

“Chemical companies need leaner operations and continued innovation as the industry faces high costs and overcapacity,” said Dale Hearn, ISG partner and chemicals industry lead in the Americas. “Digital technologies, including GenAI, are helping them capture new opportunities.”

A growing number of chemical companies are using GenAI-based tools to optimize production, the report says. With advanced analytics, IoT sensors and predictive maintenance, chemical makers have become as much as 10 percent more efficient by reducing equipment downtime and using resources more effectively. At the same time, many firms are modernizing decades-old IT and OT systems by migrating functions to the cloud and using AI-powered monitoring and predictive tools such as digital twins.

GenAI is accelerating chemical research and development by allowing companies to automate activities such as discovering new materials and determining optimal formulations, ISG says. Computational materials science, which uses modeling and simulation to understand materials, is moving from theory to practice with the help of GenAI.

Many companies are using AI, IoT and AR/VR to monitor and manage demand, inventory and supply chains, ISG says. These tools enable integrated demand sensing, which can instantly forecast the demand for products from a given factory at a certain point in the future, while also reporting how much supply will be available.

As one of the largest consumers of energy for feedstock production and manufacturing, the chemical industry is under pressure to become more sustainable, the report says. Companies are investing in end-to-end sustainability services from providers, which allow them to collect and report data on waste and emissions from all stages of production and delivery. Such services help manufacturers reduce waste and implement circular economy practices such as advanced recycling.

“For many chemical companies, sustainability and operational performance go hand in hand,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Leading service providers offer solutions and expertise to achieve both.”

The report also explores other trends in the U.S. chemical industry, including a recent increase in mergers and acquisitions and the potential effects of new North American tariffs on makers of fertilizers and other products.

For more insights into the challenges facing the U.S. chemical industry, including increasing environmental regulations outside the U.S. and threats to supply chain resiliency, plus ISG’s advice on addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2025 ISG Provider Lens™ Agribusiness and Chemicals Services and Solutions report for the U.S. evaluates the capabilities of 22 providers across three quadrants: Digital IT/OT — Chemicals, Supply Chain and Logistics — Chemicals and Sustainability and Innovation — Chemicals.

The report names Accenture, Capgemini, Deloitte, HCLTech, IBM, Infosys, PwC, TCS, Tech Mahindra and Wipro as Leaders in all three quadrants. It names EY as a Leader in one quadrant.

In addition, Genpact, Hitachi Digital Services and Kyndryl are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

The 2025 ISG Provider Lens™ Agribusiness and Chemicals Services and Solutions report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Press Contacts:



Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

How much efficiency improvement have U.S. chemical companies achieved through AI implementation?

Chemical manufacturers have become up to 10% more efficient by using GenAI tools, IoT sensors, and predictive maintenance to reduce equipment downtime and optimize resource usage.

What key technologies are U.S. chemical companies (III) adopting for digital transformation?

Companies are adopting GenAI, IoT sensors, predictive maintenance, cloud migration, digital twins, AR/VR, and AI-powered monitoring tools for operations and supply chain management.

How is GenAI being used in chemical research and development?

GenAI is being used to automate new materials discovery, determine optimal formulations, and advance computational materials science from theory to practice.

What sustainability initiatives are being implemented in the U.S. chemical industry?

Companies are implementing end-to-end sustainability services to track waste and emissions across production and delivery, while adopting circular economy practices including advanced recycling.
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