🔒AI adoption, cybersecurity rules and workforce pressures converge for manufacturers in 2026

Artificial intelligence could become a transformative force for Connecticut manufacturers in 2026, particularly as companies look to improve efficiency and competitiveness, according to Maureen Gallo, president of Bristol-based medical device manufacturer Beekley Corp.

Beyond automating repetitive tasks, Gallo said AI can increasingly optimize manufacturing processes, improve supply chain management and enable real-time quality control. But uptake on this rapidly changing technology has been tentative in many areas of manufacturing. In 2025, a Connecticut Business & Industry Association survey found that only 27% of firms have integrated some form of artificial intelligence. One of the best ways to improve implementation and uptake, according to Gallo, is investment in workforce upskilling to bridge the gap between traditional skills and emerging technology demands. “I see an opportunity for more training and support to allow AI tools to make the expected impact,” she said.

Amy Thompson, the chief technology officer at the Connecticut Center for Advanced Technology, points to a divergence in trends as AI technology begins to mature. “The discussion of human-centric automation and AI is reframing the discussion of automation around human work,” she said. The approach still relies on software and machine intelligence, but shifts the focus to integrating people into automated systems. The goal is to ensure workers have the skills to operate alongside AI, automation and collaborative robots on the factory floor, using human-centered interfaces that improve how information is shared. On the other hand, the rise of agentic AI is also creating systems that operate autonomously without humans in the loop because the system can make its own decisions and adapt to changing conditions without human intervention. “An example of this type of autonomy is a robot on a manufacturing shop floor that finds the most efficient and safe path despite a changing environment where all possible scenarios could not be defined or predicted,” Thompson said.

Cyber threats

AI and other data-sensitive technologies come with security risks, of course, and those will also be a key trend in the coming year, according to industry leaders. For Connecticut’s defense industrial base, 2026 will see some important deadlines around cybersecurity. “Companies will be working to achieve higher maturity levels for cybersecurity based upon new compliance drivers and regulations from the defense and aerospace industries,” Thompson said. Connecticut companies that supply the U.S. Department of Defense will be required to meet new cybersecurity standards by Nov. 10, 2026, under a federal framework known as Cybersecurity Maturity Model Certification 2.0, or CMMC 2.0. The program is intended to ensure that defense contractors and their suppliers can adequately safeguard sensitive government information from cyberattacks. The requirements differ based on the type of data a company handles. Firms working with more sensitive, nonpublic defense information will need to adopt stronger cybersecurity practices and, in some cases, obtain verification through outside assessments. “Many Connecticut contractors have begun improving cybersecurity controls, but gaps remain, especially among smaller suppliers,” said Kirti Patel, the state of Connecticut’s chief manufacturing officer. He urged companies to assess gaps in their cybersecurity systems and maintain ongoing monitoring to ensure compliance. Patel says his office has been proactive with its cybersecurity adoption program, which helped companies meet level 1 compliance in 2025, and they’ll continue to review how they can support small and midsize manufacturers in the year ahead.

Workforce development

And while some trends for 2026 are new, Patel says others are continuations of long-term structural issues. “Connecticut manufacturers continue to face tight labor markets,” he said. Patel expects companies to continue partnering with one another, as well as with technical high schools, community colleges and universities, to address workforce shortages. Those efforts include targeted, multiweek training programs, apprenticeship credentials and two-year degree pathways. It’s also an arena where technology continues to be important. “In 2026, a productivity-first mindset will accelerate the adoption of automation and advanced technologies to augment the skills of current and new employees and partially address the workforce shortage,” Patel said. He points to a recently approved $4.2 million statewide robotics initiative, part of the Manufacturing Innovation Fund, that aims to expand outreach to younger and underrepresented communities. Patel says that early awareness programs have so far engaged around 42,000 students and trained some 33,000 incumbent workers, and he expects those numbers to rise in 2026.

Rising healthcare costs

The coming short legislative session will also be closely watched by many employers in the manufacturing space. “Small and mid-sized manufacturers are navigating rising labor and operational costs and are looking to lawmakers to make good decisions for the health of Connecticut businesses,” said Beekley, who is on CBIA’s board. She and other employers will be looking to see how legislators balance social priorities with economic realities. “Decisions on taxation, labor laws and benefits directly influence competitiveness and job growth,” she said. Key among those costs is health care. Beekley said she’s glad to see that Gov. Ned Lamont has signaled that reducing healthcare costs will be a top priority in 2026 — a move that she said resonates deeply with businesses and employees alike. Beekley warns that health care will not become more affordable unless all stakeholders aim to control systemic costs — but without compromising quality and access. “I look forward to seeing what creative solutions policymakers will offer to address this complex issue,” she said.