5 Trends Shaping the Future of Manufacturing: Delaying AI and Digital Twins Adoption Risks Manufacturers’ Competitiveness

Web Editor

May 16, 2025

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Introduction

Emerging technologies driven by Artificial Intelligence (AI) are revolutionizing sectors like manufacturing, enhancing efficiency, adaptability, and resilience for future-ready companies.

According to the TCS Digital “Twindex for a Future-Ready Manufacturing” report, based on insights from industry leaders and technologies such as Siemens, Schneider Electric, NVIDIA, and JLR, the report highlights how AI-powered digital twins, collaborative robots (cobots), AI agents, physical AI, and peripheral computing are converging to create smarter, more sustainable, and human-centric manufacturing ecosystems. This enables the transition to proactive, AI-focused businesses.

AI and Human Experience

The study emphasizes that while AI will play an increasingly important role in data analysis and process optimization, human experience will remain central to decision-making.

Moreover, the report warns that delaying AI and digital twin adoption could jeopardize manufacturers’ competitiveness.

Anupam Singhal, President of Manufacturing at TCS, adds that we are on the cusp of a new era of manufacturing driven by digital twins, generative AI, quantum advancements, and a deep commitment to security and sustainability.

Strategic Plan for Manufacturers

Given the growing need for automation and sustainability, the report offers a strategic plan for manufacturers to thrive in an AI and digital twin-driven era.

Key Trends

  1. Industry 4.5: The next phase of manufacturing, where AI, automation, and digital twins combine to create anticipatory and adaptive businesses.
  2. Digital Twins as Real-Time Data Fabric: Acting as the connector of business intelligence, synchronizing real-time data to provide predictive insights and operational resilience.
  3. AI as Intelligence Orchestrator: AI evolves beyond specific use cases to make decisions, perform simulations, and optimize the entire manufacturing value chain.
  4. Modular and Intelligent Manufacturing: Transitioning to decentralized, plug-and-play production models driven by AI and digital twins, enabling scalable, hyperlocal intelligent manufacturing.
  5. The Human-AI Symphony in Production: Enhancing human capabilities, improving decision-making, safety, and collaboration between people and intelligent systems in the production plant.

Expert Insights

Rev Lebaredian, Vice President of Omniverse and Simulation Technology at NVIDIA, notes in the report that industrial and physical AI originate in simulation, where they can be tested and validated before real-world implementation.

“By bridging the gap between the digital and physical worlds, major industries are paving the way for software-defined, autonomous intelligent manufacturing,” Lebaredian adds.

Helenio Gilabert, Global Director of Offer Creation in Industrial Automation at Schneider Electric, warns about the urgency of starting with digitalization before automating. “Without automation, there can be no intelligence over it. To fully leverage AI and digital twins, a clear digitalization strategy must be defined first,” Gilabert advises.

Virtual Testing through Digital Twins

The report emphasizes that virtual testing through digital twins is crucial for developing resilient autonomous systems. Refining processes in virtual environments reduces errors and improves efficiency before real-world application.

Key Questions and Answers

  • Q: What is the significance of AI and digital twins in manufacturing?

    A: AI and digital twins are transforming manufacturing by enhancing efficiency, adaptability, and resilience. They enable the creation of anticipatory, human-centric, and sustainable businesses.

  • Q: Why is it important not to delay AI and digital twin adoption?

    A: Delaying AI and digital twin adoption could jeopardize manufacturers’ competitiveness, as these technologies are crucial for future-ready businesses.

  • Q: How do digital twins contribute to manufacturing resilience?

    A: Digital twins act as a real-time data fabric, synchronizing information to provide predictive insights and operational resilience.

  • Q: What role does human experience play in this AI-driven manufacturing era?

    A: Human experience remains central to decision-making, as AI takes on data analysis and process optimization tasks.

  • Q: Why is digitalization crucial before automating manufacturing processes?

    A: A clear digitalization strategy must be defined before automating, as it lays the foundation for leveraging AI and digital twins effectively.