How Manufacturers Are Scaling AI for Production Optimization
Key Highlights
- Companies are adopting AI gradually, prioritizing high-impact areas such as predictive maintenance and process optimization.
- Successful AI integration relies on phased implementation, ensuring measurable results before expanding across operations.
- Digital tools such as AI-enabled mobile devices and digital twins are transforming service and training processes.
- Scaling AI faces challenges including data security, costs and uncertain ROI, requiring strategic planning and change management.
- Human oversight remains crucial; AI is a decision support tool, not a replacement for skilled operators and engineers.
Asset management and production have gone through significant changes over the past decade, with digitalization at the forefront. Now, with AI in the mix, companies are figuring out where the technology can deliver the most value — and the manufacturers seeing the strongest results are taking a measured approach rather than trying to implement AI across the enterprise all at once.
Taking the pulse of the industry with the help of subject matter experts who work at some of the biggest providers of optimization tools offers a useful snapshot of where companies stand today.
In talking with Rahul Garg, Global VP of Industrial Machinery, Siemens Digital Industries Software, we went over some of the use cases for AI in industry. The companies incorporating AI into their digitalization and optimization strategies through a phased approach appear to be benefiting most. They are also better prepared to scale those applications into new areas of production.
Where AI is delivering the most value in industrial operations
The three big areas Rahul identified where he’s seen Siemens customers successfully implement AI as part of optimization are:
- Asset performance and predictive maintenance. Using AI to monitor equipment, predict failures before they occur and prioritize maintenance issues — essentially anything that reduces unplanned downtime. Moving from reactive to proactive.
- Closed loop optimization. Using AI to identify production bottlenecks, improve scheduling and optimize throughput, all to drive production efficiencies while taking into account change requirements, scheduling requirements, production equipment changes and even supply chain issues.
- Training. To meet the need for skilled operators, AI is proving to be a valuable tool, making training materials more interactive and learning more engaging and faster. Not just on the shop floor, but also on the engineering side, it is a tool for quickly familiarizing someone with the processes and equipment.
AI is accelerating processes, especially for training. Simulation tools, like digital twins, make it easier to gain valuable information, and learning how to use those tools can now be done much more quickly. Skills and knowledge that used to take years to build through daily interactions with the equipment can now be learned through interactive tutorials using AI.
Giving engineers and operators access to better, more accurate information helps them make faster and more informed decisions.
How manufacturers move AI from pilot to production
Rahul went on to explain that at a recent roundtable event in Amsterdam, he brought up AI with about 15 Siemens customers. He’d expected a few would be dabbling in AI, but the answers he got very pleasantly surprised him. “They were all deep into AI. They’ve been using it, trying to expand it and driving more adoption,” Rahul explained. “They’re moving from the initial piloting, prototyping phase to the production and industrialization phase.”
It’s not a matter of small tweaks; companies are diving in with both feet. However, they are being smart about it. They started by identifying areas where they were most likely to see good results, which they could then use to drive further adoption within the company. Rahul said these companies were moving aggressively to integrate AI into their engineering, production and maintenance processes. It is part of the broader digital transformation plans, and companies are seeing AI as a strategic capability.
“They’re taking a pragmatic approach,” Rahul says. “They’re not saying let’s get AI across the entire enterprise, deployed all the way. Instead, they are prioritizing high-value use cases, making sure they are getting the results they want before expanding the usage.”
What it takes to scale AI across industrial operations
One example he offered of how a process is optimized is when companies provide their service technicians with mobile tools. This in and of itself isn’t new, but what is new is that now their digital device, like an iPad or other tablet, comes with AI-based access. With all the product information at their fingertips, they can now identify and fix issues faster by uploading images or searching existing ones, but most importantly, by leveraging the experience of other service technicians within their own company.
While all this sounds impressive, the back-end reality is that scaling AI for optimization doesn’t come easily. To continue with the example of service technicians leveraging past experiences, Rahul added, “These companies have service logs going back 20, 30 years, but they are literally service logs on paper. So now, they have to go through the process to get all those paper logs scanned.”
Once those manual logs are scanned, that brings 30 years of knowledge straight to a service technician who’s doing his production job today. It’s helpful to note that much of the equipment in use today has been around for 30, 40 or even 50 years, which makes the information in old service logs extremely valuable for a technician working today.
AI is a decision support system, but it’s not a decision-making system.
Why human oversight still matters
A concern about possible hallucinations creeping into the process illustrates why keeping the human-in-the-loop is an important part of optimizing and scaling, just like the human is needed to oversee, monitor and use AI. AI should be seen as a tool, not a replacement of the human. “
AI is a decision support system, but it’s not a decision-making system,” Rahul said.
Optimizing and adopting at scale remains the hurdle many companies are still figuring out how to clear. A recent report released by Rockwell Automation, Scaling MES Across the Enterprise, puts some stats to the scaling challenge. Particularly in Chapter 3 of the report, their findings indicate that manufacturers expect 42% of manufacturing processes to become AI-supported within the next year. However, they also note that AI is scaling faster than the systems required to support it, with barriers to AI readiness listed as:
- Data security
- Cost
- ROI uncertainty
“Manufacturers are advancing AI strategies while still working to strengthen the system environment that supports secure, scalable and high-value AI use … Among those reporting that their data creates meaningful value, 38% point to AI and machine learning use cases, with quality (36%) and process optimization (35%) close behind.”
Closing the gap toward AI-led process and production optimization will require long-term planning, effective change management, and skills training for a workforce that can use AI as an effective helpmate.
About the Author

Lynn Hooghiemstra
Contributor
Lynn Hooghiemstra has many years of experience writing about technology, industrial automation, digital twin, and AI data services. She’s worked for Emerson and Rockwell Automation and has written freelance assignments for Siemens, Honeywell, and DATAmundi.
Skilled at taking complex information and writing it up into engaging and readable pieces for a broad audience, Lynn enjoys keeping up on the latest technologies and finding just the right stories in among the almost daily flow of information. You can find her at www.elynnhwriting.com.
Resources
Quiz
Stay ahead of the curve with weekly insights into emerging technologies, cybersecurity, and digital transformation. TechEDGE brings you expert perspectives, real-world applications, and the innovations driving tomorrow’s breakthroughs, so you’re always equipped to lead the next wave of change.



