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Sector — Industry, Logistics & Manufacturing

AI strategy for industry, logistics and manufacturing. From production efficiency to intelligent operations.

Generative AI adds €250–420 billion in value annually to the global manufacturing and supply chain sector. A 30%+ productivity increase in industrial operations is achievable. But 70% of success depends on people and processes — not algorithms. The 10/20/70 ratio (algorithms/technology/people) determines who wins.

The Challenge

Four forces making AI governance inevitable

1. Labour shortage and physical AI: Persistent labour shortages and rising costs are pushing manufacturing towards adaptive robots and autonomous systems. But physical AI requires fundamentally different governance than software AI — safety, human-machine interaction and real-time decision-making.

2. Pilot-to-scale gap: Manufacturing is among the sectors with the fastest AI cost savings, yet only 6% of companies achieve enterprise-wide EBIT impact. Companies optimise processes rather than reinventing the operating model.

3. OT/IT convergence: The merging of operational technology and IT for AI creates new cybersecurity risks. NIS2 mandates board-level accountability for ICT risk management that most manufacturers have not established.

4. EU Machinery Regulation: From 20 January 2027, the new regulation replaces the current Machinery Directive. AI components in machines fall under new conformity requirements — on top of the EU AI Act.

Regulatory Landscape

Regulation. Your obligations.

EU AI Act

High-risk classification for robotics, autonomous transport and workforce management AI. Conformity assessments, transparency and human oversight mandatory. Deadline: August 2026.

EU Machinery Regulation

AI components in machines: new safety requirements and cybersecurity for digitally connected machines. Replaces current Machinery Directive. Deadline: 20 January 2027.

NIS2

Cybersecurity for essential and important entities. Board-level accountability for ICT risk management including AI systems in OT environments.

CSRD

Sustainability reporting for large enterprises. AI-driven data collection for Scope 1, 2 and 3 emissions in production and supply chain.

ISO 3691-4 / ISO 10218

Safety standards for autonomous mobile robots and industrial robots. Prerequisite for safe deployment of physical AI.

Schedule an AI Opportunity Scan for your industrial organisation

Within the standard Scan timeframe, you gain visibility on gaps for the EU AI Act, Machinery Regulation and NIS2 — and a prioritised roadmap for production AI, warehouse automation and supply chain intelligence.