00:00AI is moving beyond chatbots and onto the factory floor, helping manufacturers boost productivity
00:05with industrial AI becoming a bigger part of the conversation. Joining us now is Siemens CEO,
00:11Roland Bush, who recently met with European Commission President Ursula von der Leyen and
00:15other tech leaders to discuss AI's role in Europe's industrial future. But I would note as well,
00:19Roland, the first conversation I had this year, we started 2026 with Jensen Wang talking about
00:27the transition into the physical world. Just very simply to start, why Siemens is betting so much
00:34on industrial AI? Actually, because Siemens is really geared for this moment to bring AI into the real
00:46world, we call it industrial AI. Why? You need a couple of things. Number one is you need a technology
00:52stack. And the stack includes hardware and software. Both are super relevant. Number two is domain
00:58know-how. We know how to build things. We are on the shop floor. The next one is data. We
01:02have a lot
01:03of data, our own data, data shared with our customers and partners. And we have the trust of our customers
01:10because when the AI hits the real world, hallucination is not an option. So you need
01:16hardcore results. They should work. So we have all this and we can bring it now to the real world.
01:22And
01:22last but not least, we have great partners like NVIDIA, like some others who are with us in making this
01:28transformation for our customers.
01:31I asked you at CES in January, give me a case study, an example, some evidence of AI in a
01:37factory
01:38anywhere in the world. Fast forward to June. Is it real now? Is there a deployment you can point to?
01:44Please. It's real now. And we can talk about the design phase, the manufacturing phase and the
01:51operation phase when your assets are in the field. But you talked about an example on the shop floor.
01:57Actually, we now launched our eigenengineering agent. What is it? It is an agent which programs
02:04an industrial PC for you. So if you have a cutting chop on the shop floor and the cutting is
02:10not precise
02:11anymore. Now, an engineer has to go there, reprogram your PLC and so on. Eigenengineering agent does it for you.
02:19You say, I mean, my cutting machine is not working precisely. Eigenengineering agent analyzes the
02:27problem, breaks the problem down, looks for all the data, the machines, the job which has to be done,
02:33analyzes it, develops a code, runs it, compiles it. If it doesn't work, it compiles it over again, fixes it
02:42until you can say, now go. And you push a button and then PLC is running with the same precision
02:49as before.
02:49So we are putting about 50% higher productivity while the quality of your programming is increasing by 80%.
02:58So this is real fact. And now we're introducing another function where electrical design comes also
03:03into this place. But it's a real, a real, and this was not available in the market so far.
03:12We brought it to the market and ready to expand to other use cases too.
03:16So, either by geography or by sector, is there a market where there's just more speed here?
03:23You know, we reflected on your meeting with the European Commission,
03:27and notoriously red tape can get in the way. What are you seeing in different markets around the world?
03:32I mean, the hottest market, as you can imagine, currently is AI factories and data centers. And
03:38here we are really in the design phase. Together with Zendidia, we create a blueprint,
03:42a white paper for how an AI factory in the future looks like. And guess what? It's based on a
03:47digital twin.
03:49And this digital twin is optimized with AI, obviously. But if you talk about other markets,
03:54for example, the fast growing markets, which really need productivity and speed. Semiconductors,
04:01a lot of investment going there. A lot of fabs built. Pharmaceutical, there's a lot of investment
04:07also going to the United States. Aerospace and defense. We are ramping up our capabilities to produce
04:13stuff. So, there are a lot of sectors. And then, last but not least, I mean, the car industry is
04:18also under pressure. They need to evolve faster, having faster cycles, being more flexible in their
04:23production. So, I can go on and on. And the topic is always the same. It will be faster in
04:29your design
04:29process using AI, coming from simulation, which verifies to simulation, which creates new designs,
04:36and all the way in the factory, where you're down to the point that you are deploying more and more
04:41robots. And guess what? Robots are also AI-based automation devices.
04:47Siemens has an almost 180-year history as an industrial company, an engineering company. You know,
04:55the sense I've had from you, Roland, in the times we've spoken over the last 12 months and more,
04:59is you are positioning Siemens as a technology company. How will your investments, your attitude
05:07towards M&A reflect that? And when you think about the market of today, the volatility we see in the
05:13technology sector, do you think that Siemens is being treated and valued as a technology company?
05:19Well, the short answer to the last point, not yet, but we are working on it. But here comes
05:26the point. Over the last some 15 years or so, we invested $30 billion in building up our software
05:32suite. It's the most comprehensive digital twin that can be built with Siemens technology. And it's a
05:40physics-based digital twin with a fully-realistic representation using NVIDIA technologies, for
05:46example. And that's unique. All in all, we have 9.4 billion in 2025, 9.4 billion euros in digital
05:54revenue, including software. We are going to double it until 2030. And this is a fast-growing,
06:00high-margin business. And it's now even supercharged with AI. We rewrite our software so it can be used
06:07by engineers and agents. So that means you can see higher growth rates because you can democratize it.
06:13And we're accelerating simulation. And again, we are supercharging our
06:17operation software on the shop floor with AI technology. So, yes. And we have that advantage,
06:23again, to combine the real and virtual world. You need both. Hardware is more important than ever.
06:28Think about the data centers built. Think about how robotics goes through the market,
06:33to the shop floor. So, therefore, this combination is unique. And we keep on going investing. It's a
06:38transformation. You mentioned it, almost 180 years. We're in the fastest transformation in our history.
06:44And we are on the right track. But it requires, again, a super-fast adoption,
06:49company declarations, and pre-foundation, but also of our customers, which we are supporting.
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