Siemens targets up to 80% factory automation with AI, board member says

Erlangen, GERMANY, Oct 19 : AI could help preserve manufacturing jobs in high-wage countries such as Germany by boosting factory automation to as much as 80 per cent, Siemens executive board member Cedrik Neike said on Monday.

Speaking at the company's electronics plant in Erlangen, Neike said manufacturers need annual productivity gains of 7 per cent-9 per cent to remain competitive.

• Siemens aims to harness AI to raise the level of automation in factory manufacturing to 70 per cent-80 per cent from 30 per cent-40 per cent currently, Neike said.

• Siemens and Nvidia are working on the use of "physical AI" in manufacturing, using digital twins and AI models to simulate and optimise factory operations before they are deployed on the factory floor.

• The German engineering company aims to turn its Erlangen electronics plant into a showcase for AI-powered manufacturing and will invest €500 million ($561 million) to expand the site by 2030.