How AI will change the manufacturing industry in 2025

Artificial intelligence will permanently change the manufacturing industry in 2025. It is no longer just a tool, but a strategic enabler of change. AI not only automates processes, but can now make manufacturing companies more flexible overall and enable them to reconcile technological progress with ESG goals. IFS expects the following trends in particular:

1 Industry 5.0 is coming out of the starting blocks. In 2025, companies will increasingly align their manufacturing landscapes with the concept of Industry 5.0. While this evolution of Industry 4.0 builds on technologies such as IoT and big data, it places particular emphasis on people and sustainability. With AI at its core, Industry 5.0 not only focuses on efficiency, but also aims to harmonize the interactions between humans, machines and the environment.

2 Industrial AI is coming of age. Industrial AI has now reached a state where it can deliver on its transformational promises. It delivers real, measurable value to solve key industrial challenges such as optimizing supply chains and improving predictive maintenance. By 2025, many companies will therefore no longer use Industrial AI as a stand-alone solution, but as part of a comprehensive AI strategy.

3. investment gap in sustainability is closed. For many manufacturing companies, sustainability is a top priority. However, there is often still a large gap between the areas where their investment capital goes and the areas where they can achieve the greatest environmental impact. They will therefore increasingly use AI to channel capital into areas with a high environmental impact, such as production, logistics and resource management. AI is able to monitor the sustainability of the entire value chain and can help companies become more environmentally friendly.

4. companies are changing their HR strategies. The baby boomer generation is already transitioning to retirement age and a large proportion will retire in the next few years. By 2025, many manufacturing companies will be preparing for the huge gap this will create. They will rethink their HR strategies and use technologies such as AI and robotics to compensate for the loss of these employees, who they will not be able to adequately replace due to a lack of young talent.

5 Re-manufacturing and the circular economy help twice over. In the fight against the shortage of skilled workers, manufacturing companies will also be supported by methods such as re-manufacturing and the circular economy. These not only make companies more sustainable, but also reduce the need for skilled workers, as products are no longer manufactured from scratch. AI-based technologies will play a key role in helping them to implement these methods. "In 2025, manufacturing companies will increasingly adapt to rapid technological progress, demographic changes in the workforce and the growing pressure of expectations for greater sustainability," explains Stefan Issing, Presales Director Dach at IFS. "Whether through Industry 5.0 as a whole or through specific aspects such as the use of Industrial AI, artificial intelligence will play a key role in remaining competitive and achieving sustainability goals."