Systems of Change: Innovation in an Age of Disruption
Five years ago, a plant manager would walk the factory floor listening for problems. A grinding sound meant a bearing was failing. An unusual smell could be a leak. Today, artificial intelligence (AI) helps that same industrial manager produce better results. Building on existing factory data, AI technologies can predict bearing failures weeks before they happen, and schedule maintenance during idle moments. From steel to shipping, AI is helping improve productivity, cut costs and reduce greenhouse gas emissions—upending the assumption that environmental progress drives down productivity.
As industries navigate this rapid shift, the role of AI and analytics is no longer limited to improving machinery performance—it has become central to how companies respond to broader economic and operational pressures. The same industrial intelligence that can anticipate equipment failures is now helping leaders rethink how they manage market volatility and workforce transitions. This growing capability to take action based on data‑driven insight sets the stage for a deeper transformation across the industrial landscape.
"Business conditions are less stable and less predictable than they were, 10 or 15 years ago," states Caspar Herzberg, CEO of global industrial software leader AVEVA. "There is more uncertainty and there are a lot of additional geopolitical tensions. At the same time, these tensions create new opportunities. Companies that leverage new technologies to create new products and remodel value streams can leapfrog the rest and build competitive advantages."
Industrial intelligence for smarter decisions
As businesses rethink operations to meet the moment, digital technologies can help them innovate and decarbonize. AVEVA's industrial intelligence technology not only gathers data, but it transforms data into information and insights from every point along the value chain, applying AI to identify anomalies and opportunities. The foundation of this capability is the integrated digital twin—a complete data replica of a physical asset, from its construction specs to its process information, and live data feeds. This complete view enables operators to assess asset performance in real time, compare actual activities against those planned in the design, and identify gaps or opportunities for improvement.
The bio-based plastics manufacturer Covestro, for example, uses process simulation based on its experience with hydrocarbon-based plastics to experiment with new processes to build bio-based polymers. The simulation runs in the virtual system, assuring safety while enabling Covestro's engineers to explore the possibilities of the new chemical process, explains Lisa Wee, chief sustainability officer at AVEVA. "This inventive use of AI accelerates the cycle of innovation at a time when companies need to move fast."
Digital decarbonization to reduce costs
The same principle can support decarbonization of industrial processes at scale. "There are real questions we need to answer about the carbon impact of AI itself, but there is also a lot of opportunity to leverage AI to measurably reduce the environmental and carbon impacts of industrial processes," Arti Garg, chief technologist, AVEVA, says. "Companies are finding that when they optimize their processes, they can run energy more efficiently, reducing their carbon footprint."
These are not isolated examples. Ninety-two percent of the world's economy has decoupled growth from emissions, according to the Energy & Climate Intelligence Unit.
"Companies recognize that although we live in very complex times, technologies like industrial intelligence and digital twins offer an incredible opportunity to operate more efficiently, conserve energy and reduce emissions – while also accurately baselining data and measuring progress," Lisa Wee adds. "It is possible to grow industrial output, raise living standards and reduce carbon emissions at the same time because digital transformation can drive efficiency, transparency and competitiveness."
This advertiser content was paid for and created by Acumen. Neither CBS News nor CBS News Brand Studio, the brand marketing arm of CBS News, were involved in the creation of this content.