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5 July 2026

Transforming manufacturing: Siemens and IFS partner for industrial AI innovation

Siemens and IFS have formed a strategic partnership to enhance industrial AI capabilities and manufacturing performance through a closed-loop digital twin system

Transforming manufacturing: Siemens and IFS partner for industrial AI innovation

In an era where industrial artificial intelligence is becoming increasingly pivotal, Siemens and IFS have announced a strategic partnership aimed at transforming manufacturing processes. This collaboration seeks to address long-standing challenges in factory operations, such as unplanned downtime, disconnected maintenance schedules, and siloed production data.

The partnership combines Siemens’ expertise in automationengineering and manufacturing execution with IFS’s strengths in enterprise asset management and field service. Together, they aim to create an integrated closed-loop digital twin that bridges the gap between design and real-world performance.

Closing the loop on industrial AI

The core of this partnership is the development of a closed-loop digital twin that integrates Siemens’ digital twin technology with IFS’s service history and operational lifecycle data. This system is designed to track service records, manage simulations, and improve factory execution, offering a scalable solution for the industrial sector.

Tony Hemmelgarn, President and CEO of Siemens Digital Industries Software, emphasizes the importance of grounding industrial AI in both engineering intent and real-world performance. He states, “Together with IFS, we are bringing these domains together by connecting design, manufacturing, and asset lifecycle data in a secure, contextualized data fabric.”

Mark Moffat, CEO of IFS, highlights the critical need for solutions that do not “hallucinate” in active operations. He notes, “Agentic AI is the critical frontier, and industrial leaders need solutions with closed-loop models and data, and a rich set of context that will not hallucinate in active operations.”

The impact on manufacturing performance

The collaboration aims to empower manufacturers with an executable digital twin that accelerates innovation with confidence. By converging their strengths in industrial AI, Siemens and IFS aim to help manufacturers close the loop between design and reality, unlocking real, measurable performance gains.

According to McKinsey’s State of AI in 2026 report, 88% of companies now use AI in at least one function, while 62% are either experimenting with or scaling agentic AI. Despite this progress, many manufacturers continue to operate with siloed, disconnected systems, leading to inefficiencies and lost productivity.

The partnership seeks to address these challenges by integrating AI-native production planning and asset management systems. This integration aims to enhance productivity and adaptability for manufacturers, ultimately fostering a higher level of innovation.

Additional procurement partnerships

In 2026, Siemens entered into a procurement relationship with Samsung C&T Corporation Engineering & Construction Group to generate infrastructure solutions. This partnership, under the ‘ONE Tech Company’ model, combines Siemens’ Smart Infrastructure and Digital Industries portfolio with Samsung C&T’s EPC expertise into a sole delivery method.

Stephan May, CEO of Electrification and Automation at Siemens, comments, “This partnership marks an important step in our mission to redefine how next-generation infrastructure is designed and delivered.” By combining Siemens’ integrated technology portfolio with Samsung C&T’s proven EPC expertise, the partnership aims to shape the future of sustainable and digital infrastructure.

Siemens continues to transform its procurement practices through innovations, sustainability, and resilience. This strategic collaboration with IFS represents a significant step forward in advancing industrial AI and manufacturing performance.

Author

Beatrice Mitchell

Beatrice Mitchell, Manchester-rooted and classically elegant, famously commissioned a rebuttal series after a controversial council planning meeting in Stockport, insisting on community testimony. Holds a firm editorial line on accountability and narrative fairness, and collects vintage city planning maps as an idiosyncratic hobby.