Siemens unveils first industrial foundation model to bridge AI and manufacturing

Siemens has unveiled an industrial foundation model that combines decades of manufacturing expertise with cutting-edge AI capabilities, marking a significant step toward AI-driven industrial transformation. This collaboration with Microsoft creates the first model of its kind for industrial applications, integrating with Siemens’ existing digital twin technology and Industrial Copilot tool to potentially reshape how factories operate and address skilled workforce shortages.

The big picture: Siemens is positioning itself at the forefront of AI-driven industrial transformation with a new foundation model announced at Hannover Messe 2025, Germany’s premier industrial trade show.

• The company claims its industrial foundation model (IFM) is the first of its kind, leveraging Siemens’ extensive domain-specific production knowledge to optimize engineering and automation processes.
• This development represents a convergence of traditional manufacturing expertise with advanced AI capabilities, potentially accelerating the Industry 4.0 revolution.

Key details: The new industrial foundation model was developed in partnership with Microsoft and integrates with Siemens’ existing industrial technology ecosystem.

• The system works with Siemens’ digital twin software (their industrial “metaverse”), Industrial Copilot generative-AI tool, and new virtualized programmable logic controllers (vPLCs).
• The foundation model processes various industrial data formats including 3D models, 2D drawings, and technical specifications to enhance manufacturing operations.

What they’re saying: “We have domain knowhow – we understand our industries. And we have the data. Together with AI, this is a winning combination,” stated Roland Busch, president and chief executive at Siemens.

Strategic partnerships: Siemens has formed alliances with major technology players to enhance its industrial AI capabilities.

• Accenture has created a dedicated industrial AI practice with 7,000 staff to support implementation.
• The company is also working with AWS on smart and sustainable infrastructure solutions.
• Collaborations with Nvidia aim to enhance digital twin and simulation capabilities for industrial applications.

Real-world implementation: Audi has already begun deploying Siemens’ AI-driven industrial technologies in its production facilities.

• The automaker has implemented virtual Simatic S7-1500V PLCs at its Böllinger Höfe plant, featuring the first worldwide safety-certified virtual PLC by TÜV.
• AI systems are being used for optical inspections of weld spatters, with plans to expand to Audi’s Neckarsulm factory.

Why this matters: The industrial sector has historically lagged in digital transformation, but Siemens’ approach suggests that manufacturing may now have the right combination of domain expertise, data, and AI capabilities to enable significant productivity gains.

• These developments could help address skilled workforce gaps in manufacturing while increasing operational excellence.
• The industrial foundation model represents a significant shift from general-purpose AI toward domain-specific applications built for particular industrial contexts.