Annual survey finds engineers are unsure of where AI will make the most impact – because they see its potential everywhere

Engineers are looking at the opportunity for Artificial Intelligence (AI) in product development with cautious optimism as many are still assessing in which areas of their work AI will have the greatest impact. This is according to Avnet’s (Nasdaq: AVT) fourth annual Avnet Insights survey, which has been keeping a pulse on how engineers are responding to the market – and looking ahead – since 2021.

As engineers begin to feel more optimistic overall – 75% said they think market conditions for their design products are getting better, and half (49%) anticipate that economic and market conditions in the next year will make their product design and development work easier – Avnet’s latest survey turned to a key technology that may be impacting the year to come: AI. Avnet found 4-in-10 (42%) of engineers have incorporated AI into their product design process and are currently shipping those products, and went on to examine how else engineers are responding to the technology as they navigate this new frontier.

AI technology is poised to have an impact… everywhere.

Avnet asked engineers where emerging AI technology may have the biggest impact among 14 areas, from AI-driven simulation and testing to hardware design tools and software code generation. Respondents could not identify a single leading area of opportunity – indicating that, in fact, the opportunity may lay across the board.

“It is nearly impossible to outline one specific opportunity for a technology having as much potential impact as Artificial Intelligence,” said Alex Iuorio, Senior Vice President, Global Supplier Development, Avnet. “In our latest survey, engineers told us that they see AI impacting everything from their efficiency to hardware design tools to code generation, and even how they collaborate. It’s not that AI will not impact any one area most but rather the opposite: AI can, and will, have significant impact in all these areas.”

Looking specifically at product development, nearly all (96%) engineers agree that AI will be somewhat-to-extremely likely to impact key product development functions, including: increasing automation of design tasks, enabling more personalized and customized designs, improving predictive capabilities for market needs, and reducing the overall time for product development cycles.

Addressing challenges with added expertise.

Avnet found the top challenges engineers expect when considering integrating AI into their products include security and privacy concerns (37%) and data quality issues (31%). For about a quarter, integration with existing tools (25%) and high costs (24%) also are top-of-mind.

“Any new frontier is going to come with new challenges,” said Iuorio. “We’re seeing engineers raise concerns about AI in product development which aligns with concerns we are seeing about AI more broadly. At Avnet, we know how to navigate new challenges; we have over a century of experience in doing so. We can bring together expertise from suppliers and innovative ideas from customers to capitalize on the expansive opportunities that await.”

Engineers also expect certain skills will help them capitalize on the immediate opportunity, Avnet found. The top skills engineers feel are most necessary to use AI effectively in product design include: data analysis and interpretation (16%), AI model optimization (16%), and problem-solving and critical thinking (16%).

The full 2024 Avnet Insights survey is available here.

Avnet Insights is an annual survey of engineers. The 2024 survey was conducted online and fielded to 1,204 global respondents, fielded October 31 through November 15, 2024. Regionally, respondents were based in the Americas, EMEA, Asia, and Japan (United States, Mexico, United Kingdom, Germany, China and Japan).

About Avnet

As a leading global technology distributor and solutions provider, Avnet has served customers’ evolving needs for more than a century. We support customers at each stage of a product’s lifecycle, from idea to design and from prototype to production. Our unique position at the center of the technology value chain enables us to accelerate the design and supply stages of product development so customers can realize revenue faster. Decade after decade, Avnet helps its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com.

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Avnet Media Contacts Jeanne Forbis Avnet Jeanne.forbis@avnet.com 480-643-7499

Lauren Levinson Brodeur Partners, for Avnet llevinson@brodeur.com 202-899-4639

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