Because human talent is scarce, digitalization, artificial intelligence, and cloud technology are firmly on the tissue industry’s strategic agenda. The ambition is clear: companies want smarter operations, better planning, greater efficiency and faster decision-making. Yet the latest findings reveal a persistent challenge. There is a huge gap between what organizations say is important and what they are able or willing to implement in practice.
Artificial Intelligence, yes, but...
AI is perhaps the clearest example. Interest and investment in digital technologies have increased, and generative AI, machine learning, copilots and AI agents are increasingly part of the industry conversation. Companies see potential in predictive maintenance, real-time monitoring, automated forecasting and demand-supply optimization. Production is the leading priority for new technology and AI investments, followed by quality, planning and supply chain.
Enthusiasm, though, has not yet translated into widespread, mature adoption. Major gaps remain in AI leadership, resources, strategy, programme development and skills. In Tieto’s Global Tissue Industry Study, leadership and AI strategy show a measurable shortfall between urgency and current performance, while know-how and the AI adoption lifecycle also lag behind expectations.
The challenge, therefore, is not simply finding the right AI tool. It is organizational readiness, and most importantly, willingness to invest. Without leadership commitment, practical programmes, skills development and clear governance, AI risks being just a strategic tick-the-box exercise rather than an operational capability.
A digital backbone is the top priority
The same reality is visible in digitalization more broadly. The global arena is huge and very fragmented. The need for digital is recognized almost everywhere, but progress differs significantly by geography. Europe and North America identify data and AI as leading areas of focus and have relative technology maturity. In contrast, many Asian companies are still at an earlier stage of digital transformation, although we need to be aware what is happening in China in areas such as automation or the future of humanoid robots like the world saw at the recent Olympics. At the same time, this creates an opportunity: regions without generations of legacy technology may be able to leapfrog directly to newer solutions.
Still, digitalization itself has one of the industry’s largest gaps between urgency and performance. Companies understand that integrated ERP, MES (Manufacturing Execution Systems) and S&OP (Sales & Operational Planning) systems, supported by high-quality data, are essential foundations for AI and real-time decision-making, but implementation is not keeping pace with the need. As one key message from the research suggests, the creation of a digital operational backbone is priority number one. Only then can data truly be used by AI.
Are you afraid of the big bad cloud?
Cloud adoption presents a similar contradiction. Cloud solutions have existed for long, and everyone must have seen the ongoing major investments in new data centres globally. Companies also recognize benefits such as scalability, access to SaaS solutions, AI analytics, reduced maintenance burdens and the ability to adopt proven best practices.
Yet real-life usage is still overly cautious. Cloud is often limited to data storage, a single business area, or, astonishingly, not used at all. Large-scale deployment is uncommon, and there is still a high threshold for moving production-critical operations to the cloud.
Many companies, though, have the potential to realize major opportunities to improve company and corporate-wide efficiency and effectiveness by using more standardized, common and shared solutions. The cloud with its centralized solutions is an excellent way to make rapid step changes, especially for companies lagging far behind the frontrunners in important areas, such as MES solutions, know-how and understanding.
Leader or laggard—your choice
The lesson is clear: technology alone will not close the gap. The next phase of transformation requires companies to connect ambition with execution by investing in digital foundations, trustworthy data, leadership, skills and practical implementation. Digitalization, AI and cloud services offer significant benefits, but those benefits will only belong to the companies willing to move beyond plans and pilots into real operational change and business transformation.
Your next to-do item
To explore your company’s specific roadmap to better performance and profitability through continuous efficiency improvements driven by digitalization, AI and cloud, contact us today. In the meantime, be sure to download and read Tieto’s Global Tissue Industry Study for background and stay tuned for more!
