Industrial artificial intelligence, or industrial AI, usually refers to the application of artificial intelligence to industry and business. Unlike general artificial intelligence which is a frontier research discipline to build computerized systems that perform tasks requiring human intelligence, industrial AI is more concerned with the application of such technologies to address industrial pain-points for customer value creation, productivity improvement, cost reduction, site optimization, predictive analysis and insight discovery.

Artificial intelligence and machine learning have become key enablers to leverage data in production in recent years due to a number of different factors: More affordable sensors and the automated process of data acquisition; More powerful computation capability of computers to perform more complex tasks at a faster speed with lower cost; Faster connectivity infrastructure and more accessible cloud services for data management and computing power outsourcing.

Possible applications of industrial AI and machine learning in the production domain can be divided into seven application areas:

Each application area can be further divided into specific application scenarios that describe concrete AI/ML scenarios in production. While some application areas have a direct connection to production processes, others cover production adjacent fields like logistics or the factory building.

An example from the application scenario Process Design & Innovation are collaborative robots. Collaborative robotic arms are able to learn the motion and path demonstrated by human operators and perform the same task. Predictive and preventive maintenance through data-driven machine learning are exemplary application scenarios from the Machinery & Equipment application area.

In contrast to entirely virtual systems, in which ML applications are already widespread today, real-world production processes are characterized by the interaction between the virtual and the physical world. Data is recorded using sensors and processed on computational entities and, if desired, actions and decisions are translated back into the physical world via actuators or by human operators. This poses major challenges for the application of ML in production engineering systems. These challenges are attributable to the encounter of process, data and model characteristics: The production domain's high reliability requirements, high risk and loss potential, the multitude of heterogeneous data sources and the non-transparency of ML model functionality impede a faster adoption of ML in real-world production processes.

In particular, production data comprises a variety of different modalities, semantics and quality. Furthermore, production systems are dynamic, uncertain and complex, and engineering and manufacturing problems are data-rich but information-sparse. Besides that, due to the variety of use cases and data characteristics, problem-specific data sets are required, which are difficult to acquire, hindering both practitioners and academic researchers in this domain.

The domain of production engineering can be considered as a rather conservative industry when it comes to the adoption of advanced technology and their integration into existing processes. This is due to high demands on reliability of the production systems resulting from the potentially high economic harm of reduced process effectiveness due to e.g., additional unplanned downtime or insufficient product qualities. In addition, the specifics of machining equipment and products prevent area-wide adoptions across a variety of processes. Besides the technical reasons, the reluctant adoption of ML is fueled by a lack of IT and data science expertise across the domain.