DIGITAL TRANSFORMATION INDUSTRIAL AI

IFS and Siemens Partner to Bridge the Manufacturing AI Gap

TM
Techmediaglobal
| 4 min read
88%
COMPANIES USING AI
62%
SCALING AGENTIC AI
74%
HAVE A GLOBAL PRODUCTION SYSTEM
29%
FULLY IMPLEMENTED SITEWIDE

Industrial AI software company IFS has formed a partnership with global technology company Siemens aimed at bridging the gap across the manufacturing lifecycle, integrating AI-native production planning with asset management to boost productivity and adaptability for manufacturers.

Connecting Design and Reality

The collaboration centres on industrial AI, with both companies working to connect AI-native production planning and asset management systems to deliver greater productivity and adaptability across the manufacturing lifecycle.

According to McKinsey, AI is becoming increasingly accessible for manufacturers as cloud storage, processing costs and pre-packaged tools become more affordable — a shift that could help improve efficiency, yield and margins. Yet many manufacturers continue to operate with siloed, disconnected systems that hold back that potential.

"By converging our combined strengths in industrial AI, together we will empower our customers with our vision of an executable Digital Twin that will enable them to accelerate innovation with confidence."

— Tony Hemmelgarn, President and CEO, Siemens Digital Industries Software

Addressing the Silo Problem

Siemens argues that siloed systems present a significant challenge, with manufacturers' production, maintenance planning and supply chain management systems operating in fundamental disconnection — leaving engineering intent, real-world performance and service strategy separated from one another.

According to Siemens, unplanned downtime, disconnected maintenance schedules, siloed production data and supply chain disruption continue to erode throughput, agility and margin, underscoring the need for integrated systems that bridge the divide between planning and execution.

Bridging the Design Gap

Siemens brings a comprehensive digital twin to the partnership, drawing on its position as a leader in industrial AI, while IFS contributes service history, asset behaviour and operational lifecycle data.

Mark Moffat, CEO of IFS, said manufacturers need their factory floor to behave the way it was designed, describing the partnership as bringing together two companies that each own a critical piece of the puzzle. He added that agentic AI is the critical frontier, and that industrial leaders need closed-loop models with rich context that will not hallucinate in active operations.

The Implementation Gap in Numbers

McKinsey's survey Transforming factories: The power of continuous, connected insights found that while 74% of manufacturers say their company has a global production system — an interconnected, international network that designs and manufactures goods — just 29% report full implementation across all sites.

Separately, McKinsey's State of AI in 2025 report found that 88% of companies now use AI in at least one function, while 62% are either experimenting with or scaling agentic AI — highlighting how far adoption has outpaced full-scale, connected deployment.

Key Takeaways

  • IFS and Siemens have partnered to integrate AI-native production planning with asset management across the manufacturing lifecycle.
  • Siemens contributes its comprehensive digital twin, while IFS brings service history, asset behaviour and lifecycle data.
  • The partnership aims to deliver an "executable Digital Twin" connecting design, manufacturing and asset lifecycle data.
  • Siloed production, maintenance and supply chain systems remain a major barrier to manufacturing performance.
  • Only 29% of manufacturers with a global production system report full implementation across all sites, per McKinsey.
  • IFS's Mark Moffat says closed-loop, hallucination-resistant agentic AI is critical for active industrial operations.
Tags: Industrial AI Asset Management Planning Manufacturing Technology AI Manufacturing Partnerships Digital Twin Agentic AI