Generative AI Revolutionizes Product Development in U.S. Enterprises
Early AI Implementations Show Potential for Efficient Product Development
U.S. enterprises are adopting generative and agentic AI across digital engineering. This shift aims to improve product development efficiency and accelerate time to market, according to a new report from Information Services Group (ISG) III, a global technology research and advisory firm focused on artificial intelligence.
AI’s Impact on Engineering Tasks
The 2025 ISG Provider Lens™ Digital Engineering Services report reveals that companies see AI as a key to enhancing engineering tasks—including design, simulation, testing, and operations. Various sectors such as chip design, life sciences, consumer products, precision manufacturing, and financial services are undergoing significant transformations due to AI integration. The U.S. stands out as a promising environment for this advancement, supported by its digital maturity and entrepreneurial spirit.
“Digital design and engineering can be completely transformed with GenAI,” stated Matteo Gallina, ISG’s digital engineering solutions lead. “Companies in the U.S. are eager for services that can help unlock this potential.”
Cost and Efficiency Gains Through AI
ISG notes that successful AI implementations may reduce costs, workforce needs, and development timelines. For instance, generative AI can generate millions of product designs quickly, replacing slow processes that often delay market entry. However, enterprises are increasingly looking for proven use cases, which remain scarce among service providers.
The Demand for Expertise
The demand for AI services is largely driven by industries that require deep knowledge for effective integration. For instance, in manufacturing areas like chip lithography, AI can identify failures in complex equipment. While AI models can rapidly absorb vast amounts of specialized knowledge, the requirement for vertical expertise from providers currently exceeds the available supply.
Accelerating R&D in Pharmaceuticals
In the pharmaceutical and healthcare sectors, AI is enhancing research and development processes. Agentic AI systems can autonomously analyze extensive datasets to identify potential drug candidates, optimizing clinical trial designs and expediting new therapies to market.
Regulatory Compliance and Customer Experience
Furthermore, AI is altering how U.S. enterprises develop consumer services, with an emphasis on compliance and risk management. For example, a bank utilizing GenAI to create a loan approval bot must ensure that the bot’s processes are understandable to avoid legal concerns, including discrimination claims. Privacy and data security continue to be significant issues.
“AI allows companies to rethink customer experience design, personalizing interactions at scale,” noted Jan Erik Aase, partner and global leader of ISG Provider Lens Research. “Top service providers can help clients craft AI tools that adapt to changing requirements.”
Other Trends in Digital Engineering
The report also covers other prevailing trends in digital engineering for U.S. enterprises, including the importance of data quality and mounting concerns about the energy consumption related to AI operations.
For additional insights about digital engineering challenges faced by enterprises in the U.S., including the transition to software service offerings and the need for a skilled workforce to restore manufacturing, review the ISG Provider Lens™ Focal Points briefing.
Provider Evaluations and Industry Leaders
The 2025 ISG Provider Lens™ Digital Engineering Services report analyses the capabilities of 43 providers across four quadrants: Design & Development (Products, Services, and Experiences), Integrated Customer/User Engagement, Intelligent Operations, and Platform and Application Services.
The report identifies Accenture, Capgemini, Cognizant, GlobalLogic, HARMAN, HCLTech, Infosys, LTIMindtree, LTTS, Persistent Systems, TCS, and Wipro as Leaders across all four quadrants. Cyient, Hexaware, and Tech Mahindra are recognized as Leaders in three quadrants each, while NTT DATA is highlighted as a Leader in one quadrant.
Additionally, Apexon is named a Rising Star in three quadrants, indicating a promising portfolio and future potential. Ascendion is recognized as a Rising Star in two quadrants, and Motherson Technology, NTT DATA, and Xorient are acknowledged in one quadrant each.
In customer experience, Persistent Systems is honored as the global ISG CX Star Performer for 2025 among Digital Engineering Services providers, achieving the highest customer satisfaction ratings in ISG’s Voice of the Customer survey.
Customized versions of the report are obtainable from GlobalLogic, Hexaware, and LTTS. The 2025 ISG Provider Lens™ Digital Engineering Services report is accessible to subscribers or can be purchased on the designated webpage.
