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Embedded AI

Stefan Issing / Redaktion: Alexandra Hose,

Embedded in the heart of the software

Artificial intelligence has become an integral part of everyday industrial life. But not all AI is the same. Its successful use depends much more on how well the AI functions are integrated into workflows, how practically they are used and how effectively they can be utilized. The logical consequence: companies need 'embedded AI' instead of AI clutter.

© stock.adobe.com/talkative.studio

The application pressure is enormous: in practically all industrial segments, the use of AI promises previously unimaginable leaps in efficiency, modernization options and cost benefits. However, it is not a sure-fire success and must be used in a targeted and coordinated manner. A patchwork of AI tools or even AI silos in the company is not only counterproductive, but also raises critical questions regarding security and compliance. The logical consequence is the embedding of AI tools in the company's IT as 'embedded AI'. And in an industrial context, this can only be in the software heart of every productive company. Through native integration, the company software with its ERP, FSM and EAM systems mutates into the central platform for AI use.

Seamless integration instead of isolated tools

Unlike generic AI tools, this makes it possible to tailor contextual intelligence to the specific requirements of industrial processes. The application scenarios are virtually inexhaustible. AI can be used in all its various forms: as analytical, predictive, generative or agentic AI. By embedding all these functions centrally in the business software, the IT confusion that often occurs in companies is systematically eliminated and the security risks posed by the uncontrolled use of AI tools are minimized. This also prevents the latent danger of shadow IT, which is becoming more topical and explosive in the AI environment.

Embedded AI functionalities also lower the entry barrier for users. Instead of searching for the right tool, they can immediately access the AI functions they need within their familiar environment, which are integrated directly into the industry-specific solution. Thanks to the connection to the cloud, they are also highly scalable. This makes it quicker and easier to provide additional resources. And the standardized user interface simplifies operation and makes work easier. This benefits effectiveness and efficiency.

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Embedded AI in industrial practice

Typical application scenarios for embedded AI in the industrial environment include product development, demand and sales forecasting, production control and dynamic workflows, service control and predictive maintenance. Their potential use begins in advance with the identification and forecasting of new business opportunities. For this purpose, the historical data of previous transactions is analyzed and the probability that a new transaction can be successfully concluded is calculated. Users have the option of retraining the model using their own data. This results in a customized model that fits far more precisely. Not only can sales prioritize prospects with a higher probability, they also gain more transparency on key factors that influence sales performance. The data-driven insights enable better strategic planning and more effective decision-making. Sales potential is recognized more accurately through AI-supported demand and sales forecasts.

As a result, this has the advantage that inventory and resource management can be adapted more precisely and superfluous warehousing can be reduced. The more precise resource planning that this enables in turn results in a more efficient use of resources. Historical data is also used for this and analyzed using machine learning to provide more precise time data for the various work tasks. This supports the operational business through greater planning efficiency.

Production companies benefit from embedded AI across the entire value chain. © Pixabay

Practical examples of the use of embedded AI range from the analysis of documents, such as incoming invoices or delivery bills, to the optimization of production planning and control and the detection of anomalies and errors. Embedded AI is used to plan and assign tasks autonomously. Critical areas that require special attention are highlighted where necessary. Resources are allocated automatically, taking into account the relevant qualification requirements. Restrictions that could hinder planning or resource allocation are automatically detected and reported. This makes it possible to continuously adapt and optimize workflows in production, as this is no longer rule-based, but situational.

Embedded AI takes predictive maintenance to a new level

What applies to production optimization is also an efficiency accelerator for service management. AI-supported anomaly detection plays a fundamental role in predictive maintenance, for example to automatically identify relevant patterns and trends. The ability of embedded AI to detect anomalies at an early stage and respond to them with appropriate maintenance work gives predictive maintenance a new quality. The target variables and configurations for the respective assets can be defined flexibly. The parameters required for multi-variant anomaly detection can be set precisely, changed if necessary and constantly monitored. An anomaly score shows which parameters contribute most frequently to an anomaly. This makes the causes of errors more transparent and makes it easier to avoid them in the future. In addition, work orders can be created automatically based on the threshold values for reported anomalies. In this way, embedded AI not only contributes to cost optimization, but also to increasing operational resilience.

From compliance to resilience - using the full range

Depending on the specific requirements of a company, the enterprise software with its integrated AI functions must be able to map all conceivable deployment models. In industries with special legal requirements or in critical infrastructures, this freedom of choice is limited, as companies must take into account concerns or restrictions regarding data security with cloud-based AI solutions. It is therefore important to cover the entire range of infrastructure models for IT. Regardless of the industry, secure gateway solutions for data processing are important for security and compliance reasons, without caching sensitive data in the cloud.

Stefan Issing, Presales Director DACH at IFS © IFS

In addition to optimizing industrial processes with the resulting cost benefits, embedded AI reduces the complexity of the IT and AI landscape, increases the speed of development, boosts operational resilience and is an effective tool against skills shortages, data overload and inefficient knowledge acquisition. It supports employees with routine tasks and enables them to focus on value-adding activities. In this way, it reduces personnel requirements, optimizes capacity utilization, makes workflows more dynamic and increases sustainability.

Web tip
Read more about 'Embedded AI' in our article series "The path to embedded AI"
https://bit.ly/3K3wf19
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