AI adoption surges in Türkiye’s manufacturing sector as SMEs modernize production

By Burak Karaca

Türkiye is accelerating investments in industrial digital transformation as it seeks to boost productivity and strengthen its position in global competition. Small and medium-sized enterprises (SMEs), in particular, are increasingly modernizing their production lines by adopting artificial intelligence (AI), robotic automation, the Internet of Things (IoT), and advanced data analytics technologies. The transition is being further supported by the Ministry of Industry and Technology’s digital transformation strategies, alongside incentive programs offered by KOSGEB and regional development agencies. Industry experts note that in the coming years, competitiveness will be determined not only by manufacturing capacity but also by companies’ ability to operate intelligent, data-driven factories.

According to the Turkish Statistical Institute’s (TÜ?K) 2025 Artificial Intelligence Statistics, the share of businesses employing AI among enterprises with 10 or more employees rose from 2.7 percent in 2021 to 7.5 percent in 2025. Among large enterprises, AI adoption reached 24.1 percent, while companies employing between 10 and 49 workers recorded an adoption rate of 6.6 percent. The growing use of AI in production planning, quality control, predictive maintenance, and warehouse management is encouraging SMEs to accelerate their own digital transformation investments as they seek to improve efficiency and remain competitive.

According to industry representatives, digital transformation is no longer viewed merely as an investment aimed at reducing operational costs. Production lines equipped with real-time sensors, automated quality control systems, and digital twin technologies are making manufacturing processes significantly more flexible while delivering substantial savings in energy consumption and raw material usage. Export-oriented SMEs, in particular, are investing heavily in digital infrastructure to comply with the traceability and sustainability standards increasingly required by European markets, where environmental and supply chain transparency have become key competitive factors.

Türkiye’s expanding industrial output is also providing strong momentum for digital investment. According to TÜ?K data, sales generated from industrial products manufactured by Turkish enterprises reached a historic 24.03 trillion Turkish lira in 2025, marking an all-time high. As production volumes continue to grow, manufacturers are increasingly turning to automation, intelligent manufacturing systems, and advanced digital technologies capable of managing larger production capacities with greater efficiency, flexibility, and precision.

SMEs, which account for approximately 99.6 percent of all enterprises in Türkiye, are expected to remain the driving force behind the country’s industrial digital transformation. Experts anticipate that investments in AI-powered production planning systems, autonomous robotics, cloud-based manufacturing management platforms, and industrial cybersecurity will accelerate particularly among smaller manufacturers in the years ahead. Companies that successfully complete their digital transformation are expected not only to achieve significant gains in productivity and operational efficiency but also to strengthen their competitive position in international markets, enhancing Türkiye’s broader industrial competitiveness in the global economy.