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31 Jul 2025
Why 2026 is the Year for Industrial AI
31 Jul 2025
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Industrial AI is already helping companies accelerate their digital transformation across a range of sectors, from advanced manufacturing to infrastructure and energy systems.
And the future potential is enormous. But to realise the benefits, there are two things we have to take into consideration.
Firstly, we must ensure the technology is industrial grade, designed to optimise performance and ensure safety and reliability in highly constrained industrial settings.
This is different from the Generative AI that every business is adopting, which empowers creation through natural-language prompts.
In summary, industrial grade AI must be robust, democratised and deliver applications with real purpose in industry.
Robustness is essential as industrial processes must be reliable and ensure the highest levels of security and trust, or adoption will never scale.
Democratisation means we can empower non-AI experts to access and operate the technology.
And through purpose, the deployment of AI in industry has to support the goals of the company, from increasing productivity to sustainability, while being simple to scale across different processes at speed.
While generative AI can already achieve many things with competence, the answers an LLM gives are not always predictable and can give different answers from the same prompt.
These tools are great at understanding how to answer open queries, but they struggle to consistently answer right-or-wrong maths problems involving complex calculations. This means that any AI used in industry must be industrial grade.
At Siemens, we’ve worked in AI for decades and this is why we’re developing the first Industrial Foundation Model, which can understand the language of engineering and ensure the benefits of Generative AI can be applied in the industrial world.
Secondly, we must make sense of the noise and hype around AI.
Much of it is warranted. But it’s created a wariness of the technology and indecision on how best to get started, not least because of the number of different tools and platforms that have emerged over the last 12 months.
In the conversations I have, it’s clear that businesses often feel overwhelmed by the options available to them and are stuck on where to begin.
Outlining the practicalities is always helpful, so here are five starting points to help companies leverage industrial AI to deliver measurable impact:
An important first step is ensuring that you can identify a purpose before jumping into the complexity of integration, and that means investing time into considering the right use cases and applications.
Our work with Yorkshire Water is a powerful example. Working alongside the University of Sheffield, the focus was on safeguarding natural water systems by preventing pollution risk.
The project concentrated on integrating AI into the monitoring of 55,000 km of sewers to increase the speed and accuracy of spotting overspills, and to learn the unique rainfall runoff pattern for each combined sewer outlet site so Yorkshire Water could predict blockages up to two weeks ahead.
This replaced legacy methods that were prone to false alarms and late detections, cutting pollution incidents by half and realtime operational improvements that weren’t achievable before.
The next step should take that purpose into creating a culture of strategic experimentation in engineering teams.
This could start with a small, scalable pilot that should not only focus on providing a strong case for further investment and scaling digitalisation, but in building skills and confidence in using the technology.
Take Entocycle, a pioneering manufacturer of insect farming technology focused on creating a more circular food system that will reduce the UK’s food waste and reliance on imported soya.
We used AI to model a small but groundbreaking hi-tech insect farming pilot in the arches under London Bridge and optimise how the space was used.
The technology was also integrated to enhance the yield by continually monitoring the health and size of the colony, ensuring the insects get the right amount of food and that precise temperature and humidity levels are maintained.
We believe that the complexity of the world’s challenges can’t be solved by the capabilities of one organisation on its own, which is why we increasingly work with partners to deliver outcomes for customers.
Collaboration is critical and industrial AI succeeds when it’s built on partnerships that combine deep domain expertise with proven digital platforms.
At Siemens, we work with a range of partners, from Microsoft and AWS to pioneering AI start-ups and scale-ups, to translate generative AI into industrial-grade tools that can be applied to complex processes and existing hardware.
For any business, collaboration with technology providers who understand your sector’s regulatory and operational context is essential.
Robust governance and security is vital, particularly if you’re deploying AI in environments where safety, continuity and compliance are non-negotiable.
This should include comprehensive data protection, explainable models, clear validation frameworks, and importantly, human oversight for decision making and verifying actions across a process.
Building in structured human intervention is key to scaling its use responsibly and in establishing trust among employees, customers and other stakeholders.
And this means that ensuring you have the right skills in place to support AI integration will be key.
Recognise that now is the time for action
The UK‘s track record for adopting new technologies has been mixed and while many businesses have embraced digital tools, overall investment in digitalisation has lagged behind international peers.
Failure to take advantage of AI now will risk that gap widening further, which will only serve to keep the brakes on productivity.
At an organisational level, now is the time to harness the technology or lose ground on global competitors.
By defining a clear purpose, forging the right partnerships, experimenting strategically and embedding trust, businesses can unlock the benefits of AI safely and effectively.
At Siemens, we combine the real and digital worlds to empower our customers to accelerate their digital and sustainability transformation, helping them uncover new possibilities and create more resilient, efficient businesses.
In a world of constant change, taking the first step is the most important. Now is the time to act.
Our AI Leader's Series continues in 2026 with a session on Neuro AI on 5 March. This event will explore how insights from neuroscience can inspire the next generation of AI systems, focusing on adaptive, energy-efficient neuro-inspired architectures that mirror the brain's remarkable computational capabilities.
Join us for the next instalment of our AI Leader's Series on 28 April, focusing on Bio Intelligence. This event will explore how biological systems can inspire the next generation of AI, examining bio-intelligent systems that integrate biological and digital components to create hybrid architectures with unprecedented capabilities.
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Head of AI and Data, techUK
Head of AI and Data, techUK
Kir Nuthi is the Head of AI and Data at techUK.
She holds over seven years of Government Affairs and Tech Policy experience in the US and UK. Kir previously headed up the regulatory portfolio at a UK advocacy group for tech startups and held various public affairs in US tech policy. All involved policy research and campaigns on competition, artificial intelligence, access to data, and pro-innovation regulation.
Kir has an MSc in International Public Policy from University College London and a BA in both Political Science (International Relations) and Economics from the University of California San Diego.
Outside of techUK, you are likely to find her attempting studies at art galleries, attempting an elusive headstand at yoga, mending and binding books, or chasing her dog Maya around South London's many parks.
Programme Manager - Artificial Intelligence, techUK
Programme Manager - Artificial Intelligence, techUK
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
He leads techUK’s AI Adoption programme, supporting members of all sizes and sectors in adopting AI at scale. His work involves identifying barriers to adoption, exploring solutions, and helping to unlock AI’s transformative potential, particularly its benefits for people, the economy, society, and the planet. He is also committed to advancing the UK’s AI sector and ensuring the UK remains a global leader in AI by working closely with techUK members, the UK Government, regulators, and devolved and local authorities.
Since joining techUK, Usman has delivered a regular drumbeat of activity to engage members and advance techUK's AI programme. This has included two campaign weeks, the creation of the AI Adoption Hub (now the AI Hub), the AI Leader's Event Series, the Putting AI into Action webinar series and the Industrial AI sprint campaign.
Before joining techUK, Usman worked as a policy, regulatory and government/public affairs professional in the advertising sector. He has also worked in sales, marketing, and FinTech.
Usman holds an MSc from the London School of Economics and Political Science (LSE), a GDL and LLB from BPP Law School, and a BA from Queen Mary University of London.
When he isn’t working, Usman enjoys spending time with his family and friends. He also has a keen interest in running, reading and travelling.
Director, Technology and Innovation
Director, Technology and Innovation
Sue leads techUK's Technology and Innovation work. This includes work programmes on AI, Cloud, Data, Quantum, Semiconductors, Digital ID and Digital ethics as well as emerging and transformative technologies and innovation policy. In 2025, Sue was honoured with an Order of the British Empire (OBE) for services to the Technology Industry in the New Year Honours List. She has also been recognised as one of the most influential people in UK tech by Computer Weekly's UKtech50 Longlist and was inducted into the Computer Weekly Most Influential Women in UK Tech Hall of Fame.
A key influencer in driving forward the tech agenda in the UK, in December 2025 Sue was appointed to the UK Government’s Women in Tech Taskforce by the Technology Secretary of State. She also sits on the UK Government’s Smart Data Council, Satellite Applications Catapult Advisory Group, Bank of England’s AI Consortium and BSI’s Digital Strategic Advisory Group. Previously, Sue was a member of the Independent Future of Compute Review and co-chaired the National Data Strategy Forum. As well as being recognised in the UK's Big Data 100 and the Global Top 100 Data Visionaries in 2020, Sue has been shortlisted for the Milton Keynes Women Leaders Awards and has been a judge for the Loebner Prize in AI, the UK Tech 50 and annual UK Cloud Awards. She is a regular industry speaker on issues including AI ethics, data protection and cyber security.
Prior to joining techUK in January 2015, Sue was responsible for Symantec's Government Relations in the UK and Ireland. Before that, Sue was senior policy advisor at the Confederation of British Industry (CBI). Sue has an BA degree on History and American Studies from Leeds University and a Master’s Degree in International Relations and Diplomacy from the University of Birmingham. Sue is a keen sportswoman and in 2016 achieved a lifelong ambition to swim the English Channel.
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Head of Industrial AI – Digital Industries , Siemens UK & Ireland