Industry 5.0, AI and India: Schneider Electric’s Barbara Frei on making factories smarter – Crypto News

Artificial Intelligence (AI) is now expected to drive the next industrial revolution. Factories already have sufficient automation, but AI-driven manufacturing can soon bring about significant changes and has taken centre stage in the Industry 5.0 era. Unlike Industry 4.0, which focused on automation, connectivity, and data-driven decision-making, Industry 5.0 integrates human intelligence with advanced technologies such as AI, robotics, and open automation—fostering more agile, adaptive, and sustainable industrial ecosystems.

Barbara Frei, EVP – Industrial Automation at Schneider Electric, in a freewheeling conversation with Debashis Sarkar, shares crucial insights on the next industrial revolution. Excerpts.

Q: AI is increasingly being integrated into industrial automation. How do you see its role evolving?

A: AI has been integral to industrial solutions for many years. About 17 years ago, we introduced products with embedded AI, including machine learning and advanced process control. Today, AI has evolved to encompass real-time edge computing and generative AI.

Generative AI, in particular, holds significant potential in engineering. In the future, engineers may no longer need to manually design systems on large screens. Instead, they might simply input application requirements, and AI will generate optimised automation solutions. This shift could redefine how industrial automation is approached, making it more efficient and innovative.

Moreover, the widespread adoption of AI and Machine Learning (ML) for predictive maintenance and intelligent decision-making is transforming industries. AI-driven machine vision is addressing the shortage of nearly 8 million workers in quality inspection roles. Beyond quality control, AI reduces engineering time and improves operational efficiency, driven by the need to enhance productivity and compensate for labour shortages.

Q: Industries worldwide are rapidly adopting AI and automation. Do you think this shift is being driven by necessity or external pressures?

A: The adoption of AI and automation is primarily driven by necessity, as businesses seek to enhance productivity, address labour shortages, and remain competitive in an evolving industrial landscape. While external factors such as regulatory policies and sustainability goals play a role, the core driver remains the need for greater efficiency, agility, and resilience.

One of the most significant AI applications today is visual inspection, improving quality control and reducing errors in manufacturing. Additionally, industrial decarbonisation is accelerating AI adoption. The industrial sector—including buildings and factories—accounts for over 40% of global CO₂ emissions, making it the largest contributor to climate change. AI-driven energy optimisation and automation technologies are critical in reducing emissions, improving resource efficiency, and achieving sustainability targets.

Beyond energy management, the Industrial Internet of Things (IIoT) is transforming operations by enabling real-time data exchange, while collaborative robots (cobots) are redefining human-machine interaction. The convergence of AI, robotics, and energy technologies—coupled with advanced data management—is revolutionising industries, driving both sustainability and competitiveness in the era of digital transformation.

Q: What are the key global trends in industrial automation over the past year? How does India compare in terms of adoption?

A: Over the past year, industrial automation has been shaped by key trends such as AI and ML-driven predictive maintenance, industrial decarbonisation, increased adoption of IIoT and collaborative robots, and the shift towards software-driven, open automation for greater flexibility and efficiency. Sustainability remains a top priority, with automation optimising resources and reducing emissions. While digital transformation is critical for competitiveness, a McKinsey study found that fewer than 26% of companies successfully implemented it due to organisational challenges like cross-functional collaboration. However, adoption is improving as leadership teams actively drive digital initiatives. In India, automation adoption is accelerating, driven by government initiatives like ‘Make in India’ and a growing focus on smart manufacturing.

Q: You mentioned leadership support. Do you think there are deliberate efforts to resist automation and AI due to concerns about job losses or lack of expertise?

A: At Schneider Electric, we believe that successful automation and AI implementation goes hand in hand with upskilling. When organisations embark on these projects, it is crucial to invest in continuous learning so that employees understand not only the possibilities but also the limitations of these technologies.

We focus on equipping our people with the right skills to drive this transformation effectively, ensuring alignment across the organisation. A clear vision is essential—one that empowers employees to adapt and thrive in an evolving industrial landscape. This approach is at the core of Industry 5.0, where technology and human expertise come together to create sustainable and efficient systems.

Q: Open automation is gaining momentum. What is your perspective on it?

A: The momentum behind open automation is undeniable, and its impact on industries is transformative. With industries contributing nearly 40% of global emissions, optimising, digitising, and electrifying operations is critical to addressing sustainability challenges. While digitisation and automation improve efficiency, many existing automation solutions are proprietary, restricting data access at the IT level and limiting integration capabilities.

Open automation bridges this gap by seamlessly integrating data from operational technology (OT) to IT. Since approximately 80% of factory data is generated through automation, open automation enables companies to orchestrate systems across different levels and decouple hardware from software. This flexibility allows software updates without hardware dependencies, ensuring agility, reducing unnecessary costs, and enhancing overall efficiency.

Q: How do you see the future of industries in India with regards to automation and AI?

A: India has a tremendous opportunity to become a global leader in industrial automation, driven by AI, digitisation, and open automation. The country is making significant strides in upskilling, investing in digitalisation, and adopting advanced technologies, positioning itself for a future of smart manufacturing. However, for this transformation to be successful, a highly skilled workforce, sustainable energy sources, and a robust logistics infrastructure must align. While challenges like skill gaps and legacy infrastructure remain, India’s commitment to digitalisation, government initiatives like ‘Make in India,’ and increasing automation adoption across sectors like energy, manufacturing, and infrastructure indicate strong momentum.