Siemens targets up to 80% factory automation with AI

Siemens says AI could raise factory automation from roughly 30–40% today to 70–80%, with Erlangen planned as a showcase.

Oct 21, 2026 - 11:42
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Siemens targets up to 80% factory automation with AI
Official Siemens SIMATIC industrial automation product image. — Image: Courtesy of Siemens

Siemens targets up to 80% factory automation with AI

Siemens executive board member Cedrik Neike said AI could lift factory automation to 70–80%, from 30–40% now. He said manufacturers need annual productivity gains of 7–9% to remain competitive.

Siemens and Nvidia are working on “physical AI” using digital twins to simulate operations before deployment. Siemens plans to invest €500 million expanding Erlangen by 2030.

Neike said automation could help preserve manufacturing jobs in high-wage countries such as Germany by improving productivity.

The target is an executive forecast, not an industry outcome, but it ties AI adoption to factory economics and capital investment.

The approach puts simulation before physical deployment, potentially reducing commissioning risk. It also shifts the debate from replacing individual tasks to redesigning complete production systems.

The company’s stated range should therefore be read as a strategic ambition tied to its own factories and customers, not a forecast that every manufacturer will reach the same level.

Image: Courtesy of Siemens.

Sources

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jajoy39 I’m Nahid Hasan Joy, a technology writer, web developer, and digital enthusiast with a strong interest in the ever-changing world of technology.