AI-enabled solutions help Siemens improve margins, says Global CTO
Subscribe to enjoy similar stories. Industrial technology major Siemens will be focusing on delivering artificial intelligence-based solutions to its customers over selling simple components to differentiate itself and enrich its margins, a top global executive at the firm said.
The German company, with a revenue of €77.8 billion in fiscal ended September 2023,is also exploring the development of large language model-based interface for its industrial solutions that will help its clients simplify industrial design and automation, according to Peter Koerte, who is the chief technology officer, chief strategy officer and a board member at Siemens AG. With these solutions, engineers can give natural language inputs for creating a design of their products instead of manually making designs in computer-aided design (CAD) software, Koerte said.
“Think about the amount of time saved, but also the many different variations you can create because of the saved time." Siemens’ recent acquisition of industrial simulation and analysis software maker Altair Engineering will form the basis of developing these solutions, he added. “Today, we are all fascinated by ChatGPT but show me where has it really transformed industry yet.
And this is where Siemens comes into play," he said. “We take those models, and we apply them and put them to productive use, for energy management, for resilient supply chains, whatever that is." Siemens, which has a listed subsidiary in India, is bullish on the market for the adoption of its AI-enabled smart industrial products.
The Indian arm, Siemens Ltd, has seen its profit margin improve 1.6 percentage points year-on-year to 11.6% in the April-June quarter. This has been partly attributed to higher margins
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