Siemens targets up to 80% factory automation with AI, board member says

Erlangen, GERMANY, Oct 19 (Reuters) - AI could help preserve manufacturing jobs in high-wage countries such as Germany by boosting factory automation to as much as 80%, Siemens executive board member Cedrik Neike said on Monday.

Speaking at the company's electronics plant in Erlangen, Neike said manufacturers need annual productivity gains of 7%-9% to remain competitive.

• Siemens aims to harness AI to raise the level of automation in factory manufacturing to 70%-80% from 30%-40% currently, Neike said.

• Siemens and Nvidia are working on the use of "physical AI" in manufacturing, using digital twins and AI models to simulate and optimise factory operations before they are deployed on the factory floor.

• The German engineering company aims to turn its Erlangen electronics plant into a showcase for AI-powered manufacturing and will invest €500 million ($561 million) to expand the site by 2030.

($1 = 0.8909 euros)

(Reporting by Alexander Huebner, writing by Cian Muenster)