Industry Talks by ARC Advisory Group

AI is everywhere - from trade shows to boardrooms. But where is it really creating value in industrial digital services?

In this episode, Luciano and Alexey move beyond the hype and break AI down into two practical streams: machine learning and Generative AI. Machine learning is already proving its impact in predictive maintenance, helping companies analyze sensor and process data to prevent failures and reduce downtime.

Generative AI adds a new layer: industrial voice assistants trained on machine documentation and operational data. Instead of digging through manuals, operators can simply ask questions in natural language - and receive clear, contextual instructions in seconds.

But here’s the reality check: without high-quality, structured and accessible data, AI initiatives stall. Many industrial sites still struggle with fragmented documentation and legacy systems. The real competitive advantage lies not just in algorithms, but in building the right data foundation.

Key themes in this episode:

• Practical AI use cases in digital services
• Predictive maintenance and actionable insights
• Generative AI as an operator interface
• Why data quality determines success or failure

The key question is not whether AI matters - but whether organizations are prepared with the right data foundation to unlock its potential.

Want to get in touch?

We welcome your topic suggestions, ideas, feedback and criticism. Feel free to leave us a comment on Spotify or write to us at: [email protected]. You can also reach us on LinkedIn (@arcweb-europe) or YouTube (@ARCadvisory). Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters 

Further readings

We’ve linked relevant ARC reports and resources in the show notes or visit: www.arcweb.com 

• https://www.arcweb-europe.com/
• ARC Automation Survey
• ABB’s Automation Extended: Flexible, Open, Sustainable | ARC Advisory Group
• Software-Defined Automation: Foxboro SDA and the Shift Toward Open Control Architectures | ARC Advisory Group

Enjoyed the episode? Subscribe, leave a review and share it with your network! Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters 

Chapters

(00:00) Introduction to Industry Talks
(00:26) ARC Orlando Forum – Atmosphere & Attendance
(01:25) AI, Data Fabrics & Digital Twin Developments
(03:00) Human Digital Twins & AstraZeneca Insights
(04:43) Digital Twins in Entertainment Engineering
(06:16) AI as Dominant Theme Across All Sessions
(08:06) PepsiCo & Jabil Keynotes – AI along the value chain
(12:17) IT–OT Collaboration & NAMUR Learnings
(15:31) Interoperability, O‑PAF & MTP
(20:06) ABB Extended – Open DCS Modernization
(24:53) Schneider Electric Open SDA – Software‑Defined Automation
(30:24) Coffee Talk: Digital Services, ML & GenAI
(33:00) Data Quality, Training Challenges & Market Outlook

Hosts: David Humphrey, Florian Güldner

Guests: Alexey Grechko, Luciano Narcisi

Produced by: ikone productions

More episodes at:

• Spotify (https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e)
• Apple (https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518) 
• Youtube https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE) 

China has long been viewed as a predictable engine of global manufacturing growth. In this episode, ARC’s Florian Güldner and David Humphrey discuss why those assumptions are increasingly under pressure - and what that means for manufacturers and automation suppliers worldwide.

They explore the shift from macroeconomics to shop-floor reality: slowing demographics, saturated consumer markets and persistent overcapacity across key industries are reshaping China’s industrial landscape and its role in global value chains.

The discussion then turns to automation, where China has moved well beyond copycat products. Local suppliers are rapidly building competitive PLC, DCS, MES and software portfolios, changing the balance between global and domestic vendors.

Key themes touched on include:

• The end of China as an “easy” high-growth market
• Overcapacity and price pressure in industries like automotive, steel and cement
• The rise of innovative Chinese automation suppliers and business models
• A growing split between export-oriented factories and China’s domestic market

A concise, reality-based look at how China’s manufacturing and automation markets are evolving - and why understanding this shift is now critical for global industry.

Want to get in touch?

We welcome your topic suggestions, ideas, feedback and criticism. Feel free to leave us a comment on Spotify or write to us at: [email protected]. You can also reach us on LinkedIn (@arcweb-europe) or YouTube (@ARCadvisory). Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters 

Further readings

We’ve linked relevant ARC reports and resources in the show notes or visit: www.arcweb.com 

·       https://www.arcweb-europe.com/

·       ARC Automation Survey

·       Siemens and NVIDIA Expand Partnership to Build the Industrial AI Operating System | ARC Advisory Group

·       Siemens, NVIDIA, and the Industrial AI Revolution | ARC Advisory Group

·       ARC Industry Leadership Forum Manufacturing Energy Execs | ARC Advisory Group

·       ARC Industry Leadership Forum Europe | ARC Advisory Group

·       How Green Hydrogen Supports China’s Energy Transition and Deep Decarbonization | ARC Advisory Group

·       US NIST Launches Centers for AI in Manufacturing and Critical Infrastructure | ARC Advisory Group

Enjoyed the episode? Subscribe, leave a review and share it with your network! Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters 

Chapters

(00:00) Introduction to Industry Talks

(00:26) ARCwire Analysis & January Market Trends

(01:25) Siemens at CES and Industrial AI Developments

(03:00) Siemens–Nvidia Partnership & Industrial AI Operating System

(04:43) ARC Industry Forum Orlando – Registration & Highlights

(06:16) Global Sponsors and Event Significance

(08:06) Hydrogen, Renewables & China’s Energy Strategy

(12:17) NIST, EU Cybersecurity & AI Threat Landscape

(15:31) Coffee Talk: China’s Changing Economic Reality

(20:06) Industry Overcapacity & Rise of Chinese Innovation

(24:53) Chinese Automation Champions & Market Shift

(30:24) From the Plantfloor: Rita Liu

Hosts: David Humphrey, Florian Güldner

Guests: David Humphrey, Florian Güldner, Rita Liu

Produced by: ikone productions

More episodes at:

·       Spotify (https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e)

·       Apple (https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518) 

·       Youtube https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE) 

Edge, Cloud, virtualization, real time - and a shop floor full of legacy systems. In this episode, ARC’s Florian Güldner sits down with David Humphrey to unpack why IT/OT convergence in manufacturing feels painfully slow and why that might actually be okay.

They explore how virtualization - a technology IT has used for decades - is finally gaining traction on the shop floor, helping manufacturers reduce hardware sprawl, extend the life of legacy software and simplify maintenance. From “little gray boxes” and ancient code to software-defined factories, the discussion highlights what’s changing, what isn’t and why culture and machine lifecycles matter just as much as technology.

The conversation gets concrete withreal-world examples, including machine builders already delivering software instead of hardware, and Audi’s EC4P initiative - where even PLCs and safety PLCs are virtualized and run in a private cloud kilometers away from the production line.

Key topics include:

·  Why IT/OT convergence is slow - and why that’s not necessarily a failure

· How virtualization cleans up decades of scattered shop-floor software

· The difference between real-time, hard real-time and “good enough” real time

· Why machine builders are being pushed to deliver software, not boxes

· How Edge and private cloud come together in real production environments

· Why virtual PLCs aren’t killing the PLC market - just reshaping it

A grounded, experience-based look at wheremanufacturing really stands today on Edge, Cloud, and virtualization - andwhere it’s realistically headed next.

Want to get in touch?
We welcome your topic suggestions, ideas, feedback, and criticism. Feel free toleave us a comment on Spotify or write to us at: [email protected]. You can alsoreach us on LinkedIn (@arcweb-europe)or YouTube (@ARCadvisory). Furthermore, you can subscribe to ARCwire IndustryNewsletter at: https://www.arcweb.com/about/newsletters

Further readings
We’ve linked relevant ARC reports and resources in the show notes or visit: www.arcweb.com

· https://www.arcweb-europe.com/

· https://www.arcclientportal.com/_entity/sharepointdocumentlocation/c56713b5-96db-f011-8544-002248246bc9/05084dd2-21cb-4b68-9387-9e42c8536d55?file=SPS%202025%20-%20Light%20on%20Innovation%2C%20Rich%20on%20Future%20Visions.pdf

· https://www.arcweb.com/blog/will-virtual-plcs-succeed-where-soft-plcs-failed

· https://www.arcweb.com/blog/new-era-industrial-automation-benefits-challenges-sda

· https://www.arcweb.com/blog/audi-siemens-reimagining-shop-floor-virtuals-plcs

· https://www.arcweb.com/industry-best-practices/ec4p-audi-ag-creating-it-based-factory-automation

Enjoyed the episode? Subscribe, leave areview, and share it with your network! Furthermore, you can subscribe toARCwire Industry Newsletter at: https://www.arcweb.com/about/newslettersChapters:

(00:00) Introduction and Welcome

(00:30) Discussing Industry Trends and Analysis

(01:23) Insights from the SPS Show

(02:31) AI and Automation Innovations

(07:05) NAMUR General Assembly Highlights

(09:30) Autonomous Operations and AI in Industry

(17:07) Finding the Sweet Spot of AI

(18:16) Introduction to Edge and Cloud Architectures

(19:33) Virtualization in Manufacturing

(21:38) Challenges and Benefits of Virtualization

(24:49) Real-Time and Practical Examples

(29:43) Future of Edge Technology

Hosts: David Humphrey, Florian Güldner
Guests: David Humphrey, Florian Güldner
Produced by: ikone productions
More episodes at:

·  Spotify (https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e)

·  Apple (https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518)

·  Youtube https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE)

In this episode, David Humphrey and FlorianGüldner from ARC Advisory Group discuss the latest industry trends anddevelopments, with a deep dive into one of the most pressing topics of today:Industrial Electrification.

We kick things off with an overview ofrecent market developments, highlighting new product launches, advances in AIacross industrial operations and key moves in the supplier landscape - includingmajor partnerships, strategic shifts and evolving approaches to energy andautomation.

Then, for our Coffee Talk, we’re joined byThomas Menze and Luciano Narcisi from ARC Advisory Group. They explore:

· The challenges faced by end users in implementing industrial electrification

· The crucial role of energy efficiency as a first step toward electrification

· The promising but still maturing technologies in the field

· The expected timeline for industry transformation, with many companies aiming for net-zero objectives

· The rise of consulting and digital services to support these goals

Luciano shares insights from ARC's latestresearch, shedding light on the roadmap that companies are following in theirelectrification journeys and how they’re preparing for a decarbonized future.

This episode offers valuable perspectives for companies navigating the energy transition.

Want to get in touch?We welcome your topic suggestions, ideas, feedback, and criticism. Feel free toleave us a comment on Spotify or write to us at: [email protected]. You can alsoreach us on LinkedIn (@arcweb-europe)or YouTube (@ARCadvisory). Furthermore, you can subscribe to ARCwire IndustryNewsletter at: https://www.arcweb.com/about/newsletters

Further readings

We’ve linked relevant ARC reports and resources in the show notes or visit: www.arcweb.com

· https://www.arcweb-europe.com/

· https://www.arcweb.com/industry-best-practices/arc-advisory-group-industry-market-update-september-2025

· https://de.surveymonkey.com/r/QBCK2LD

· https://www.arcweb.com/blog/rockwell-automation-launches-controllogix-5590-controller-advanced-industrial-control

· https://www.arcweb.com/industry-best-practices/arc-champions-radar-ai-ml-solutions-automation-suppliers

· https://www.arcweb.com/blog/aramco-yokogawa-achieve-major-milestone-commissioning-multiple-autonomous-control-ai-agents

· https://www.arcweb.com/blog/tpg-acquire-ptcs-kepware-thingworx-businesses

· https://www.arcweb.com/blog/hitachi-energy-blackstone-partner-strengthen-power-grid-services-north-america

· https://www.arcweb.com/blog/schneider-electric-launches-schneider-boost-pro-battery-energy-storage-system-smarter-building

· https://www.arcweb.com/blog/google-nextera-energy-revive-decommissioned-iowa-nuclear-facility

· https://www.arcweb.com/blog/ge-vernova-acquire-full-ownership-prolec-ge-strengthen-electrification-grid-operations

· https://www.arcweb.com/blog/schneider-electric-lays-out-strategic-vision-electrification-automation-digitalization

Enjoyed the episode? Subscribe, leave areview, and share it with your network! Furthermore, you can subscribe toARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters

Chapters

(00:00) Introduction to Industry Talks

(00:35) Recent Updates in Industrial Indices

(01:28) Key Topics in Industrial Automation

(02:40) PTC's Major Announcements

(04:26) AI Champions Radar

(05:57) Main Topic: Electrification

(06:25) Electrification News Highlights

(07:01) Schneider Electric's Innovations

(08:47)  Energy and Sustainability Trends

(13:27) Challenges in Industrial Electrification

(17:19) Future of Industrial Electrification

Hosts: David Humphrey, Florian Güldner
Guest: Luciano Narcisi, Thomas Menze
Produced by: ikone productions
More episodes at:

· Spotify (https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e)

· Apple (https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518)

· Youtube https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE

In our debut episode, David Humphrey and Florian Güldner from ARC Advisory Group sit down for a conversation on industrial transformation - from automation strategies and AI integration to evolving end-user demands and ecosystems.

Then, for a Coffee Talk, we are joined by Thomas Menze, ARC Senior Analyst and expert for process automation and OT cybersecurity, to explore:

• The real-world challenges industrial end users face when securing their control systems

• Why cybersecurity in operations is no longer a one-off project, but a continuous process

• How AI is being used to build both attacks and defenses

• What’s driving the growth of managed services in OT environments

• How companies can respond to the skills gap in cybersecurity and automation

Thomas also shares what plant managers, system integrators, and operations leaders need to consider when building a resilient cybersecurity strategy - especially in complex industrial environments.

This episode kicks off a series of conversations from ARC Advisory Group Europe, focused on technology, strategy, and transformation across the industrial world.

Want to get in touch?

We welcome your topic suggestions, ideas, feedback, and criticism. Feel free to leave us a comment on Spotify or write to us at: [email protected]. You can also reach us on LinkedIn (@arcweb-europe) or YouTube (@ARCadvisory). Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters 

Further reading
We’ve linked relevant ARC reports and resources in the show notes or visit: www.arcweb.com 

• GE Vernova Sells Proficy Industrial Software Portfolio to TPG for $600 Million | ARC Advisory Group

• Schneider Electric, NVIDIA Co-Engineer GB300 NVL72 Power and Cooling Frameworks | ARC Advisory Group

• Hitachi to Acquire Synvert to Accelerate Agentic and Physical AI Growth | ARC Advisory Group

• COPA-DATA Announces Virtual DCS for Pharma Industry | ARC Advisory Group

• IAA and Drinktec: A Tale of Two Trade Fairs | ARC Advisory Group

• Champions Radar: European Industrial Cybersecurity Services | ARC Advisory Group

• @ARCadvisory WebWindow on Industrial Cybesecurity Services - YouTube

• ARC Champions Radar: Industrial Data Platforms | ARC Advisory Group

Enjoyed the episode? Subscribe, leave a review, and share it with your network! Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters 

Chapters:

(00:39) Key Industry Trends Overview

(00:57) GE's Transformation and Software Trends

(03:24) The Future of DCS and Virtualization

(06:27) AI Partnerships and Market Impact

(09:13) Insights from the IAA Mobility Show

(11:44) Highlights from Drinktec

(13:28) Conclusion and Call to Action

(14:03) Discussion on Industrial Cybersecurity

(14:54) Latest Challenges in Cybersecurity

(17:05) Is my plant secure after one visit?

(18:44) Trends in the implementation of industrial Cybersecurity

Hosts: David Humphrey, Florian Güldner
Guest: Thomas Menze
Produced by: ikone productions
More episodes at:

• Spotify

• Apple

• Youtube (@ARCadvisory)