TE Connectivity survey: Return on investment becomes top priority as AI age evolves

Rhea-AI Summary

TE Connectivity (NYSE:TEL) released its March 23, 2026 Industrial Technology Index showing AI adoption above 80% at industrial tech firms and a shift toward financial returns. Executives naming profit growth as top priority rose to 43% (+17 points). Extensive AI adoption climbed to 35% (from 22%), led by the U.S. at 41% (+26 points).

The report highlights growing AI integration across workflows, rising executive focus on ROI over product innovation, and challenges aligning engineers and leaders on success metrics.

Positive

• AI adoption exceeded 80% among industrial technology companies
• Executives prioritizing profits rose to 43% (+17 points)
• Extensive AI adoption increased to 35% from 22% (+13 points)
• U.S. extensive adoption reached 41% (+26 points)

Negative

• Widespread alignment challenges between engineers and executives on AI success metrics

Annual Industrial Technology Index reveals companies are now more focused on AI's bottom-line impact than innovation goals

GALWAY, Ireland, March 23, 2026 /PRNewswire/ -- Adoption rates of artificial intelligence tools at industrial technology companies have exceeded 80%, according to a new global survey from TE Connectivity, a world leader in connectors and sensors. And now, the survey data says, these companies are demanding a return on their investments as AI tools become more integrated into their operations.

For the first time in the four years TE has published the Industrial Technology Index to understand from engineers and business leaders what is driving innovation at their companies, financial returns are being prioritized over product innovation. Forty-three percent of executives said their top priority is increasing company profits, up 17 points from last year, while those who selected product innovation were down nine points to 26%. Engineers followed suit, with 31% selecting company profits (+2 points) and 24% prioritizing product innovation (-7 points).

"AI integration is increasing at companies around the world, but this year's TE Connectivity Industrial Technology Index found many are facing challenges aligning on what success looks like once it is embedded into everyday workflows," said CEO Terrence Curtin. "This year's report highlights a growing need for shared objectives between engineers and executives as AI adoption accelerates. Without that alignment, AI can introduce friction inside a business instead of advancing innovation and transforming operations. The companies making the most progress are those translating AI investment into real–world impact."

As the quest for return on investment continues, survey respondents from China, Germany, India, Japan and the United States said AI adoption continues to expand. This year, 35% said their company has adopted AI "extensively," up from 22% last year. Breaking down responses by country, the U.S. leads the way with 41% having adopted AI extensively – a 26-point increase over last year, when it was tied with Germany for the lowest percentage. The percentage of respondents in China claiming extensive adoption only went up one point to 29%, indicating they experienced an earlier spike in adoption than the U.S. Industrial Technology Index data also shows both executives and engineers – nearly half of each group – are eager to experiment with new technology like AI immediately. Globally, the survey shows that younger respondents from China are most bullish about the technology.

Data from this year's Industrial Technology Index also showcases trends around AI in sustainability, its integration into daily work, its impact on engineering talent needs and more. To read the full report, visit te.com/techindex.

About TE Connectivity

TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram.

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SOURCE TE Connectivity plc

FAQ

What did TE Connectivity's March 23, 2026 report find about AI adoption at TEL-era industrial tech firms?

Adoption exceeded 80%, with 35% reporting extensive use; the U.S. led at 41%. According to the company, the survey shows rapid AI integration and rising expectations for measurable ROI across operations.

How much did executives at industrial tech companies prioritize profits in TE Connectivity's 2026 survey (TEL)?

Executives prioritizing company profits rose to 43%, a +17 point increase year-over-year. According to the company, this is the first time financial returns edged out product innovation in the four-year index.

What change in extensive AI adoption did TE Connectivity report for the U.S. in 2026 (TEL)?

U.S. respondents reporting extensive AI adoption rose to 41%, up 26 points year-over-year. According to the company, the U.S. saw the largest yearly increase in extensive AI deployment among surveyed countries.

Does the TE Connectivity Industrial Technology Index say AI focus shifted from product innovation to ROI (TEL)?

Yes — product innovation responses fell while profit focus rose; executives prioritizing profits reached 43%. According to the company, the index shows a notable shift toward measuring AI by bottom-line impact rather than innovation alone.

What operational risk did TE Connectivity highlight regarding AI adoption in its March 23, 2026 report (TEL)?

The report flagged alignment gaps between engineers and executives that can create friction when scaling AI. According to the company, shared success metrics are needed to translate AI investment into real-world impact.