January 05, 2024
In a world still grappling with geopolitical tension and global challenges, COP28 shone as a beacon of hope, bringing together governments, industry leaders, and civil society. They united under a common goal: to create a more sustainable future by doubling efficiency, tripling renewables, and transitioning toward regenerative practices. A harmonious relationship between people and the planet can be realized through circular, ethical practices underpinned by digitalization. Specifically, a new, ecosystem-first approach to information and insight, driven by the integrated digital twin, could be the key to accelerating Industry 5.0 and bringing about the sustainable improvements we need.
Speed is of the essence. As the UN Framework Convention on Climate Change highlights, the next two years are critical. To meet the Paris Climate Agreement goals, emissions must start decreasing next year and drop 43% by 2030, compared to 2019 levels. This urgency calls for rapidly deploying available technologies and accelerating industrial innovation—to reduce carbon emissions, expand sectors like green hydrogen, build smarter infrastructure, and set new global standards for waste reduction and efficiency.
Three key technologies — digital twins, industrial artificial intelligence (AI), and industrial intelligence that spans your entire business ecosystem — are set to drive this acceleration from 2024 and beyond.
As McKinsey states, the shared-insight approach acts as a “centrifugal force” within organizations. Democratizing insights from the field and edge back to labs enables operators, developers, and experts to co-innovate, unlocking groundbreaking solutions in real time.
When teams have access to the same insights, they can collaboratively solve complex problems, making projects easier to execute on time and within budget. Operational innovation then scales quickly. For instance, Vista Projects, a Canadian engineering firm, saw a 16% cost reduction and a 10-15% reduction in engineering hours when deploying integrated software on a large-scale energy project.
From the discussions at COP28, it's evident that the partnership between the public and private sectors is the engine driving global sustainable innovation. Initiatives like Digital India and Saudi Arabia’s vision of smart cities, like Neom, are transforming sectors from power generation to manufacturing by reshaping sustainability approaches.
By combining the capabilities of industrial AI with the breadth and scale of the digital twin, we can significantly speed up decision-making and uncover new value. Industrial AI supports tasks like optioneering, predictive maintenance, and real-time operational optimization, while digital twins form the backbone for predictive modeling, scenario simulation, and efficient lifecycle management.
Together, these technologies provide stakeholders with data-driven insights, empowering proactive decision-making and enhancing operational resilience. For example, in the critical infrastructure sector, a power plant can reduce fuel costs by 28%, maintenance costs by 20%, and operational costs by 19.5% by adopting integrated digital solutions.
How do democratized insights and cutting-edge capabilities unlock new sustainability outcomes? The digital twin supports the entire value chain—from design to optimization. It identifies inefficiencies, resource-saving opportunities, and addresses labor and skills shortages. An integrated ecosystem approach not only drives operational efficiency but also aligns with sustainability goals. AI and machine learning improve these capabilities by enabling continuous self-optimization through autonomous processes.
A great example of this in practice is Salem, Oregon, where integrated data and AI help predict conditions that lead to toxic algae blooms, allowing the city to proactively prevent these events and ensure resilience.
This kind of thinking is also being applied to power generation and smart manufacturing.
Looking ahead to 2024, IDC forecasts that spending on Generative AI (GenAI) solutions will reach $143 billion by 2027, with an annual growth rate of 73%. This explosion in AI investment will accelerate the adoption of Industry 5.0, where intelligent machines work alongside humans.
In industries already advanced in digital twin and AI adoption, companies will begin merging digital insights with human, environmental, and social knowledge. This fusion of data analytics, AI, and human insight enables industrial intelligence, allowing businesses to intuitively predict opportunities and inefficiencies.
For example, Covestro, a global leader in chemicals, is pioneering the development of bioplastics to achieve its 2035 carbon neutrality goal. By leveraging AI-enhanced process modeling based on the digital twin, Covestro's engineers can rapidly simulate and test various new polymers, quickly discarding non-viable options and accelerating the development of successful innovations.
This test-and-learn approach—where AI and the scope of digital technologies combine with human expertise—exemplifies the innovation-at-the-edge mindset we expect to see more of in 2024 and beyond.
Companies face the growing pressure of delivering on the triple bottom line—planet, people, and profit. With the power of augmented intelligence and digital twins, Industry 5.0 is already enabling a new era of efficiency, lower waste, and greater equity. The integration of AI and digital twins is transforming business models, ensuring that industries can meet the demands of sustainability, innovation, and profitability.
To discover how building a connected data ecosystem can transform your business, visit ENI and unlock the potential of the digital twin.