For the printing and packaging industry, artificial intelligence and automation are more than shiny toys; they’ve become essential business tools.

Case in point: 85% of print service providers consider AI critical to remain competitive, while 83% see it as a source for new opportunities. That’s according to “AI Adoption in the Printing Industry: From Curiosity to Competitive Advantage”– a 2025 report from Alliance Insights, the research branch of PRINTING United Alliance, ASI’s strategic content partner.

That attitude about AI has become stronger since then. A participant in Alliance Insights’ “State of the Industry Report 2026” puts it this way: “The industry seems increasingly bifurcated. Companies investing in automation, AI-enabled workflows and differentiated experiential capabilities are improving efficiency and protecting margins. Those competing primarily on price, without operational scale or specialization, will continue to face margin compression.”

How PSPs Are Using AI & Automation

Automation has been around in the printing and packaging industry in some form for years. Today, PSPs use software to automate workflows ranging from order intake to finishing. On the equipment front, manufacturers have embedded automation into their machines. All of this is in the name of time savings and efficiency.

While AI has emerged more recently than automation, its abilities have grown rapidly, and its adoption has, too. Similar to automation, this increased adoption has been motivated by the need to save time and boost efficiency.

That could be said about any technological advancement in print; a press that churns out sheets more quickly can make a shop more efficient. But what’s different about automation, and AI in particular, is that they touch everything, not just the pressroom or the front office. This has proven especially useful for addressing efficiency imbalances at the operational level.

“The production side has become incredibly efficient. But the front end hasn’t kept up,” one participant in the AI adoption report noted in an interview. “AI and automation are finally catching up to balance it out.”

As the AI adoption study reveals, non-production tasks are some of the most commonly reported areas for AI use: 57% of respondents use it for generating design and copy, 38% use it for marketing personalization and 26% use it for customer support via chatbots and virtual assistants.

AI and automation are increasingly intertwined, with AI frequently embedded in software applications to help automate processes. In fact, 16% of respondents in the AI adoption report say their AI use is tied to production automation; another 23% cite sales tasks such as automating administrative tasks as a way they use AI.

High-Value Uses for AI

While using AI to save time is beneficial, it’s not necessarily the most impactful application. As Amy Servi-Bonner, vice president of PRINTING AI, often says, AI implementation that doesn’t hit the P&L is purely entertainment.

According to the Alliance’s State of the Industry report, AI holds great potential for trend analysis and forecasting in particular. When it comes to predictive analysis, AI can process tons of unstructured data, meaning PSPs can extract insights more easily from audio files, text files, videos and images to make better decisions.

On the forecasting front, AI can help create accurate forecasts of customer needs and supply chain conditions, through which PSPs can reduce financial risk.

Looking forward, AI agents are becoming a major opportunity for printing and packaging. For instance, Greg Tucker, CEO and chairman of Bay Cities Packaging, sees agents as an avenue to support job intake.

“Soon we will see agents scheduling and our clients’ agents will see our open capacity and place work orders directly into our production facilities,” Tucker says.

Why Some PSPs Lag on AI

Automation has been widely adopted in the printing and packaging industry, but some PSPs hesitate to implement AI.

Why? Participants in the AI adoption study report a range of challenges that have inhibited AI implementation. Most frequently, they cite a lack of in-house experience or training as a barrier (57%). Figuring out where AI can best be used or where to start were two other major barriers (56% and 42%, respectively). But respondents also pointed to unclear or negative ROI (20%), staff or leadership resistance (15%), overhyped expectations (19%) and concerns about privacy, security or compliance (22%).

Staff resistance to AI has been widely reported across industries, stemming from concerns about being replaced and skepticism about effectiveness. Respondents to the AI adoption study – from commercial printers to apparel decorators – report overcoming this hesitation by reassuring employees and showing them how it can alleviate the burden of mundane tasks.

“Early resistance came from employees who feared AI would replace their roles or who did not understand how to use the tools,” one survey participant notes. “Leadership reframed AI as a tool to make people ‘faster and better,’ not redundant.”

That’s the right tack to take. As AI and automation continue to become integral in the printing and packaging industry, the people with industry know-how will have more time to use their expertise, making a bigger impact on the P&L. That expertise is what will keep shops running.

“It’s a pattern-matching system that is very fast, very literal and only as good as what information you put in it,” Servi-Bonner said in a webinar earlier this year. “AI does not know your shop – you do. But that combination between your knowledge and AI’s speed is exactly where the value lives.”

Print & Promo Marketing is your source for news, commentary and strategy for the promotional products, commercial print and product decoration industries.