IFS Boosts Its Offerings in the Unsung Hero of AI: Industrial AI

ORLANDO, Fla.— Enterprise AI discussions have been dominated by generative AI, particularly around making individual workers more efficient. However, a different breed of AI quietly toils away behind the scenes, keeping our infrastructure humming and propelling us toward a sustainable future. This is industrial AI, the workhorse cousin of the AI family.

Many feel industrial AI does not get enough love from the expanding AI universe. That may be true, though companies like IFS are looking to change that.

What is industrial AI? This subset of artificial intelligence is specifically designed to address the challenges and opportunities within industrial settings. It leverages machine learning, deep learning, the industrial internet of things (IIoT), and other capabilities to analyze vast amounts of data generated by industrial processes, machines, sensors, and people. This analysis enables businesses to optimize operations, improve efficiency, drive innovation, and move toward sustainability goals.

IFS, a global enterprise software company, is a prominent proponent of industrial AI. The company provides comprehensive enterprise resource planning (ERP), enterprise asset management (EAM), and service management (FSM and ITSM) solutions that are tailored to six industries. IFS’s approach to industrial AI involves integrating AI capabilities into its existing software platforms, enabling businesses to leverage AI-driven insights to enhance decision-making and optimize operations.

IFS touted its substantial growth in industrial AI, corporate revenue, its partnership with Microsoft Copilot, and other areas at its customer and partner conference in Orlando, Fla., this week. It rolled out many new additions and use cases to IFS.ai, which is the backbone of its ERP, EAM, and service management solutions. When applied to the six industries IFS serves, the data points are surprising. They speak volumes about the crucial role that the unsung hero of AI plays behind the scenes:

• Eight out of 10 of the US’s leading energy companies use IFS.ai to deliver power to US homes
• 200 million-plus Americans connect every day using cell phone networks maintained with IFS.ai
• 200 billion packages a year are sustainably produced and distributed across the world using IFS.ai
• Nine billion square feet of construction projects globally are managed with IFS.ai
• 310 million passengers a year fly in aircraft maintained by IFS.ai
• Two billion people are moved on elevators and walkways maintained by IFS.ai every day

The potential for industrial AI is clearly enormous. IFS customers that have deployed IFS.ai have many use cases, including the following.

• Advanced robotics integration: Manufacturing firms optimize workflows with AI-powered robotic systems for enhanced automation, safety, and efficiency.
• Predictive safety measures: Companies leverage AI to analyze data and predict potential safety hazards, allowing for proactive prevention.
• Augmented reality for maintenance: More companies are integrating AR with AI to provide technicians with real-time information and instructions on complex repairs.
• Supply chain management: IT organizations using IFS.ai can predict potential disruptions in the supply chain and recommend alternative options, minimizing delays and maintaining production flow.
• Asset performance management (APM): IFS has strong APM capabilities. Its customers use AI to analyze data to understand asset health, optimize maintenance schedules, and maximize asset lifespan.
• Sustainability optimization: Companies using IFS.ai can identify and implement energy-saving practices and track environmental impact for more sustainable operations.

Although, as one speaker from MIT put it, when it comes to industrial AI, “the future is already here; it’s just not evenly distributed.” Meaning, some industrial companies are already fully capitalizing on it, but many more need to do so. One interesting moment occurred in the keynote when the speaker conducted a live poll, with the audience using their phones to answer questions. The speaker then asked the companies who are fully using IFS.ai to stand up. Then he had them announce their industries, standing in sections like doing “the wave” at a ballgame. Those standing shouted out “manufacturing,” then “food and beverage,” etc., as the wave moved across the convention hall.

“This is a unique moment in our history, and the potential for IFS is huge,” IFS’s new CEO Mark Moffat (pictured above) said. “And that potential includes IFS enabling our customers and partners to consume vast quantities of AI innovation at scale, available in a very digestible way. That’s what we are focusing on.”

“It’s really interesting for me, because the consumer applications of AI, they’re getting regular discussion in the mainstream,” Moffat continued. “But there are literally tens of thousands of discovered and undiscovered applications from AI in this industrial setting, specifically in the hardcore industries that we serve.”

Deep Roots

IFS’s approach to industrial AI includes the following:

• Deep industry expertise: IFS has a long history of serving six specific industries, providing a deep understanding of their challenges and requirements. This expertise allows IFS to develop AI solutions that are tailored to the needs of each sector. (IFS focuses on manufacturing; energy, utilities and resources; construction and engineering; service and retail; healthcare and life sciences; and the public sector.) IFS says this focus on just six industries is a key differentiator for them.
• Integrated platform: IFS’s AI capabilities are integrated into its existing platforms, providing a comprehensive solution for businesses. This eliminates the need for separate AI systems and simplifies implementation.
• Focus on business outcomes: IFS emphasizes the value of AI in driving tangible business outcomes, such as increased efficiency, reduced costs, improved customer satisfaction, and better sustainability outcomes. The company works closely with its customers to understand their goals and tailor AI solutions accordingly.

“No Hallucinations?”

The three-pronged approach that IFS takes to industrial AI is highly important. Why? Because, as Christian Pedersen, chief product officer at IFS, put it, IFS’s industrial AI solutions do not suffer from hallucinations, which is a pernicious issue in AI systems that generate false or misleading information.

IFS’s claim had this analyst scratching his head. IFS took great pains to explain this “no hallucinations” statement, but it must be noted that, while IFS strives for zero hallucinations, they are unlikely to be completely eliminated. The risk is certainly minimized, but some level of error might still be present.

IFS says it minimizes hallucinations with the following approach:

• Domain-specific knowledge: IFS’s deep understanding of specific industries allows it to train its AI models on relevant data and information, reducing the likelihood of hallucinations.
• Data quality and governance: IFS emphasizes data quality and governance to ensure that the data used to train its AI models is accurate and reliable. This helps to prevent the generation of false or misleading information.
• Continuous validation: IFS regularly validates its AI models to ensure that they are producing accurate and reliable results. This involves comparing the model’s output to known data and making adjustments as needed.

“Generative AI creates a lot of buzz, with broad applications and so forth, but industrial AI really stands apart,” Pederson said, “because industrial AI needs laser-focused precision, with no hallucinations. That’s the key difference.”

Pederson continued:

“I just met with a defense manufacturer. And for them, guess what is absolutely essential? One hundred percent precision. They use AI, they want to continue to use AI, and they want to go much deeper in industrial AI. But without a hundred percent precision, it’s not going to work for them.”

“They cannot allow just 1% of hallucination. The example we all know from having used ChatGPT is where you go in and ask for something. It gives you a response back, and you can correct it. And next time you ask it provides a different answer. That’s the power of that type of technology. But that doesn’t work in industrial AI. So, I want to stress that IFS industrial AI has context. It understands your industry. It understands your business and your data, and it understands your people. So, when it generates action, it does it in the context of real-world challenges. We think this is critical.”

Challenges for IFS

Despite its advantages, IFS faces several challenges in the industrial AI market:

• Competition: The market for industrial AI is highly competitive, with numerous big players (see below for more on that) offering similar solutions. IFS must continually innovate and differentiate itself to maintain its market position.
• Data privacy and security: As AI systems rely on large amounts of data, ensuring data privacy and security is a critical concern. IFS must implement robust measures to protect sensitive information.
• Talent acquisition: The development and deployment of industrial AI solutions require specialized skills and expertise. IFS must attract and retain top talent to remain competitive.
• Converting legacy customers: IFS has many long-standing customers using its legacy systems, many of them on-prem. It will be interesting to watch how it does in converting them to using IFS.ai. This migration-to-the-cloud journey has been a challenge for many ERP companies in the cloud era.

The market for industrial AI is growing rapidly, driven by the increasing adoption of digital technologies and the need for businesses to optimize operations. While exact figures are not easy to predict, estimates suggest that the market is worth billions of dollars and is expected to continue expanding in the coming years.

Competitors in the industrial AI space include:

• SAP: The global software giant offers a wide range of enterprise software solutions, including those focused on industrial AI.
• Oracle: Another major player in the enterprise software market, Oracle provides AI-powered solutions for various industries.
• PTC: A software company specializing in product lifecycle management and augmented reality, PTC also offers AI-driven solutions for manufacturing and other industries.
• GE Digital: The digital arm of General Electric, GE Digital provides IIoT and AI solutions for various industries.

As the demand for efficiency, innovation, and sustainability rises, industrial AI is poised to play a pivotal role. By continuously innovating and adapting, IFS and other industry leaders can harness the power of industrial AI to ensure a more efficient, sustainable, and technologically advanced future for all.

By Tom Dunlap, Research Director