How are engineering leaders navigating speed, agility and cost pressures in the age of AI?
Engineering and R&D pulse 2026 is essential reading for chief R&D officers, engineering heads, CTOs, innovation directors, and senior leaders in finance and supply chain functions. It provides guidance on how to:
- Apply multiple AI modalities through a structured deployment approach to unlock value at scale.
- Transform engineering for flexibility to balance cost, speed and agility demands.
- Broaden access to global talent and invest in workforce development to address talent shortages.
- Expand the engineering partner ecosystem to unlock capacity for impact
Read the research brief to discover the trends, organizational shifts, and technology priorities redefining competitiveness in engineering and R&D.
Read an executive summary below.
Key findings in Engineering and R&D pulse 2026:
- Performance metrics are slipping: 78% report rising engineering costs; nearly half say design and development timelines have increased. Talent shortages, legacy systems, and weak innovation cultures compound the challenge.
- AI is transforming engineering outcomes: Over 75% of executives expect AI to deliver 20–50% improvements in productivity, time-to-market, and cost reduction. 84% plan to increase AI investment, with China and Japan leading the charge.
- Preparedness gaps remain: Fewer than one-third feel ready to tackle geopolitical uncertainty, supply chain shocks, and talent shortages – underscoring the need for agility and resilience.
- Digitization and diversified outsourcing are key levers: Organizations are fast-tracking digital scenario planning and expanding outsourcing models – including performance-based and revenue-sharing partnerships – to boost agility and align with outcomes.
- Human ingenuity matters: Despite AI’s rise, only 15% believe it can replace the creativity and problem-solving of human engineers – highlighting the importance of talent development.
Download the research brief to discover the trends, organizational shifts, and technology priorities redefining competitiveness in engineering and R&D.
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Alexandre Audoin has led Capgemini and Capgemini Engineering global Automotive Industry for three years. Since July 2024, Alexandre is Capgemini Engineering Global Head of Industries, Sales & Portfolio with a special focus on the creation of Intelligent Industry, helping clients master the end-to-end software-driven transformation and do business in a new way through technologies like 5G, edge computing, artificial intelligence (AI), and the internet of things (IoT).
Keith Williams has 34 years’ experience in the engineering & technology industry. As Chief Technology Officer, Keith drives Research & Innovation, Strategic Investment and Technical Authority across all industrial and technical domains. He played a pivotal role in the development of the Capgemini WindSightIQTM innovative solution that brought real-time wind visualization to the Louis Vuitton 37th America’s Cup.
Dr Andrew Vickers has 30 years of experience in leading edge international engineering. Building on a solid technical grounding in systems and software engineering in safety-critical environments, he has held a broad range of leadership roles at small team, country, and international scope across a broad range of functions. He is currently the Chief Technical Officer with responsibility for the application of Artificial Intelligence as applied to Engineering Research and Development. He holds Masters and Doctoral degrees from the University of York, is a Chartered and European Engineer, and a Fellow of both the British Computer Society and the Institute of Engineering and Technology.
Idriss leads global Core Engineering at Capgemini, driving engineering-led transformations across 20 countries, including Best Cost Countries. He has successfully helped Fortune 500 clients in Aerospace, Automotive, Life Sciences, and Energy boost product and process performance, reduce costs, accelerate time-to-market, and advance sustainability—through industrialized delivery models and AI-augmented engineering, powered by 21,500 engineers, scientists, and experts. Passionate about innovation, sustainability, and inclusive leadership, Idriss connects strategy to execution to turn engineering into a catalyst for better, more resilient futures.
