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AI is moving beyond chatbots and onto the factory floor, helping manufacturers boost productivity, with industrial AI becoming a bigger part of the conversation. Joining us now is Semens CEO Roland Bush, who recently met with European Commission President Ursula Vonderleon and other tech leaders to discuss AI's role in Europe's industrial future. But I would note as well, Roland, you were the first conversation I had this year. We started twenty twenty six with Jensen Wang talking about the
transition into the physical world. Just very simply to start. Why Semens is bedding so much on industrial AI.
Actually, big ass Siemens is really geared for this moment to bring AI into the real world because its industrially. I why you need a couple of things. Number one is you need a technology stack, and the stack includes hardware and software. Both is super relevant. Number two is domain or how we know how to build things we are on the shop floor. The next one is data. We have a lot of data, our own data, data shared with our customers and partners, and we have the
trust of our customers. Because when the AI hits the real world. Pallucination is not an option, so you need hardcore results. They should work. So we have all this and we can bring it now to the real world and husband at least we have great partners like in media, like some others who are with us in making this transformation for our customers.
I asked you at CES in January, give me a case study, an example. There's some evidence of AI in a factory anywhere in the world. Fast forward to June. Is it real now? Is there to please? Can point to please?
It's really now, and we can talk about the design face, the manufacturing face, and the operation phase when your assets are in the field. But you talked about an example on the on the shop floor. Actually, we now launched our iding engineering agent. What is it. It is an agent which programs an industrial PC for you. So if you have a cutting chop on the shop floor and the cutting is not precise anymore, now an engineer has to go there reprogram your PLC and so on. Iing
engineering agent does it for you. You say, I mean, my cutting machine is not person they're not working precisely. Iron engineering agent analyzes the problem, breaks the problem down, looks for all the data, the machines the job which has to be done, analyzes it, develops a code, runs it, compiles it. If it doesn't work, it compiles it over again, fixes it until you can say now go and you push a bottom and then PLC is running with the
same position as before. So we are brought about fifty percent higher productivity while the quality of your programming is increasing by eighty percent. So this is real factor. And now we're introduced using another function where electrical design comes also into this into the place. Well, there's a real and this also not available in the market. So far we brought it to the market and ready to expand to other use cases.
To either by geography or bi sector. Is there a market where there's just more speed here? You know, we reflected on your meeting with European Commission. Notoriously red tape can get in the way. What are you seeing in different markets around the world.
I mean the hardest market as we can imagine currently is AI factories in data centers. And yeah, we are really in the design phase together. It's in DDIA. We create a blueprint a white paper for how an a high factor in the future looks like guess what it's based on a digital twin, and this digital twin is optimized with AI obviously, But if you talk about other markets, for example, the fast growing markets which need really need
productivity and speed. Semiconductors, a lot of investment going there, a lot of VABs bills, pharmaceutical there's a lot of investment also going to the United States and aerospace and defense. We are ramping up our capabilities to produce stuff. So there are a lot of sectors. And then last part of lease, I mean the car industry is also under pressure. They need to evolve faster, having faster cycles, being more flexible in their production. So I can go on and on, and
the topic is always the same. You will be faster in your design process using AI, coming from simulation which verifies to simulation which creates new designs, and all the way in the factory, way down to the point that you were deploying more and more robots, and guess what robots are also AI based automation devices.
Semens has an almost one hundred and eighty year history as an industrial company, an engineering company. You know the sense I've had from you, Roland in the times we've spoken over the last twelve months and more is you are positioning the Semens as a technology company. How will your investments, your attitude towards M and A reflect that.
And when you think about the market of today, the volatility we see in the technology sector, do you think that Semens is being treated and valued as a technology company.
Well, the short answer to the last point not yet, but we're working working on it. But the ons the point. Over the last fifteen years or so, we invested thirty billion dollars in building up our software suite. It's the most comprehensive digital twin can be built with Semen's technology, and it's a physics based digital twin with a fully realistic representation using a media technology for example, and that's unique.
All in all, we have nine point four billion in twenty twenty five, nine point four billion euros in digital revenue including software. We are going to double it until twenty thirty so and this is a fast growing, high margin business and it's now even super charged with AI. We rewrite our software so it can be used by
engineers and agents. So that means you can see higher growth rates because you can democratize it and the accelerating simulation and again we are supercharging our operation software on the shop floor. We say AI technology, so yes, and we have that advantage again to combine the real inted world, you need to both. Hardware is more important than ever. I think about the data centers built, think about how how robotics school there is through the market to the
shop floor. So therefore this combination is unique and we keep on going investing. It's a transformation. You mentioned it almost on eady the years then the fastest transformation or history, and we are on the right track. But it requires again I was super fast adoption, but also for our customers, which we are supporting.
Fresh from one of Europe's biggest keynotes, fresh from meeting with Europe's most important leaders, Roland versch seman CEO back on Bloomberg Tech, thank you very much. Indeed,