- U.S. enterprises are rapidly adopting generative and agentic AI to enhance digital engineering processes.
- AI integration is significantly influencing sectors like chip design, life sciences, and financial services.
- ISG (III, Financial) has identified major players and rising stars in the digital engineering service provider landscape.
In a recent study by the Information Services Group (Nasdaq: III), U.S. firms are increasingly leveraging generative and agentic AI technologies to advance digital engineering. The 2025 ISG Provider Lens™ Digital Engineering Services report highlights AI's role in transforming product development processes, enhancing speed to market, and optimizing design, simulation, testing, and operations. This AI-driven transformation is reshaping industries such as chip design, life sciences, consumer products, precision manufacturing, and financial services.
The United States, with its mature digital infrastructure and entrepreneurial ethos, presents fertile ground for AI adoption. Successful AI application can significantly cut costs, reduce workforce dependencies, and streamline development timelines. For instance, generative AI can vastly accelerate product design processes, previously hindered by long development periods.
However, the study indicates a pressing need for proven AI use cases tailored to specific industries, where deep expertise is required. In manufacturing, AI could revolutionize the chip lithography process by identifying equipment failures. Similarly, agentic AI in pharmaceuticals and healthcare could streamline drug discovery and clinical trials by autonomously analyzing extensive datasets.
Furthermore, AI integration in developing consumer services demands strict regulatory compliance to mitigate risks such as privacy breaches and unintended biases, especially in sectors like banking when deploying tools such as loan approval bots.
The report classifies leading companies in digital engineering services, naming Accenture, Hexaware, Cognizant, and TCS among others as leaders in multiple quadrants. ISG also recognized emerging entities like Apexon and Ascendion as Rising Stars with promising future potential in the sector.
For more comprehensive insights into these developments, including data quality challenges and the need for vertical expertise, the full 2025 ISG Provider Lens™ Digital Engineering Services report for the U.S. is available for purchase.
