Digital Transformation Viewpoints

The energy at AWS re:Invent 2025 in Las Vegas was undeniable. The narrative has shifted decisively from the passive "Industrial Copilots" of last year to active, autonomous Agentic AI. Everywhere you looked, the talk was of autonomous swarms, "Supervisor Agents," and the new Strands Agents SDK empowering developers to build digital workers that can reason and act. However, as I (Colin Masson of ARC Advisory Group) noted in my recent Top 10 Takeaways for Industrial AI from AWS re:Invent 2025, there is a stark divergence between the "hyperscaler dream" and the "brownfield reality." For manufacturers dealing with 20-year-old assets, proprietary protocols, and disparate silos, building these agents often hits a brick wall—the "Factory Wall." An AI agent is only as intelligent as the context it is fed, and in most factories, that context is trapped in the machine layer. To explore how the industry is breaking through this barrier, I sat down at re:Invent with Joe Rosing, Worldwide Head of Smart Manufacturing at AWS, and Torey Penrod-Cambra, Co-Founder and Chief Communications Officer at HighByte. We discussed the critical role of Industrial DataOps in untangling the mess of industrial data to fuel the next generation of AI. Would you like to be a guest on our growing podcast? Do you have an intriguing or thought provoking topic you'd like to discuss on our podcast? Please contact Our Producer Tom Cabot at: Tcabot@Arcweb.com View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

It's impossible to ignore the tidal wave of excitement and hype surrounding Generative AI. However, at ARC Advisory Group, we consistently advise our Industrial Sector clients that success in this new era requires understanding the entire Industrial AI Toolbox, not just the newest, shiniest instrument. This ongoing Industrial AI (R)Evolution is fundamentally reshaping operations and architecture across IT, OT, ET, and Data Science domains. To cut through the noise and provide clear guidance, I've been hosting a detailed podcast series on Industrial AI with thought leaders across the ecosystem. In this context, I was thrilled to welcome Dustin Johnson, CTO of Seeq Corporation, back for our third conversation. Would you like to be a guest on our growing podcast? Do you have an intriguing or thought provoking topic you'd like to discuss on our podcast? Please contact Our Producer Tom Cabot at: Tcabot@Arcweb.com View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

In our first ARC Advisory Group SPARC podcast, Steve Blackwell of AWS and I explored the vision for Software Defined Manufacturing, where Agentic AI acts as the "brain and central nervous system." Our second conversation brought that vision to the factory floor, examining the "muscles" of the operation with the rise of Physical and Embodied AI. In this third installment of our ongoing dialogue, we connect the brain and the muscles. A central theme in my new ARC research series on the Voyage to Physical Intelligence is that for any system to perceive, reason, and act in the physical world, it needs a deep, contextual understanding of that world. This brings us to the critical role of the digital twin—not as a static model, but as a live, learning environment that serves as the foundation for the next wave of industrial autonomy. Would you like to be a guest on our growing podcast? Do you have an intriguing or thought provoking topic you'd like to discuss on our podcast? Please contact Our Producer Tom Cabot at: Tcabot@Arcweb.com View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

In our first ARC Advisory Group SPARC podcast, Steve Blackwell of AWS and I explored the vision for Software Defined Manufacturing, where Agentic AI acts as the "brain and central nervous system." Our second conversation brought that vision to the factory floor, examining the "muscles" of the operation with the rise of Physical and Embodied AI. In this third installment of our ongoing dialogue, we connect the brain and the muscles. A central theme in my new ARC research series on the Voyage to Physical Intelligence is that for any system to perceive, reason, and act in the physical world, it needs a deep, contextual understanding of that world. This brings us to the critical role of the digital twin—not as a static model, but as a live, learning environment that serves as the foundation for the next wave of industrial autonomy. Would you like to be a guest on our growing podcast? Do you have an intriguing or thought provoking topic you'd like to discuss on our podcast? Please contact Our Producer Tom Cabot at: Tcabot@Arcweb.com View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

As manufacturers and processors globally navigate through an era marked by rapid technological advancements, trade and geopolitical uncertainties, and evolving consumer demands, the need for flexible, interoperable, and software-centric automation systems has never been more critical. Open software-defined automation is not just an incremental improvement; it's a strategic imperative that enables industries to enhance their competitiveness, operational resilience, efficiency, and sustainability. In this podcast, Craig Resnick, Vice President, from the ARC Advisory Group. and Hany Fouda, Senior Vice President, Process Automation, Industrial Automation Business, at Schneider Electric, will provide their insights on the transformative impact of open software-defined systems, explore the challenges faced by industry leaders, the role of Schneider Electric in driving this transformation, the benefits of adopting open software-defined automation, and real-life applications and future directions that affect industrial automation users globally. Would you like to be a guest on our growing podcast? Do you have an intriguing or thought provoking topic you'd like to discuss on our podcast? Please contact Our Producer Tom Cabot at: Tcabot@Arcweb.com View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

In our first ARC Advisory Group SPARC podcast, I had the pleasure of speaking with Steve Blackwell, Head of the Manufacturing Center of Excellence at Amazon Web Services (AWS), about the transformative shift towards Software Defined Manufacturing (SDM) in the Era of Agentic AI.1 We explored how Agentic AI is becoming the "brain and central nervous system" of the future factory, orchestrating complex digital workflows across the enterprise.2 In this second episode, we bring that vision down to the factory floor. We're moving from the digital intent to the physical action—from the brain to the "muscles" of the operation. Steve and I discuss the physical embodiment of SDM through robotics, exploring AWS's evolving strategy and the rise of a new, more capable class of automation: Physical and Embodied AI. Would you like to be a guest on our growing podcast? If you have an intriguing, thought provoking topic you'd like to discuss on our podcast, please contact our host Colin Masson at cmasson@arcweb.com or Our Producer Tom Cabot View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

In the first three episodes of this series, we rediscovered our industry’s foundational challenges, tracked the rise of what ARC calls the Industrial Data Fabric, and highlighted the domain-specific innovators driving much of the momentum. This journey has established the critical need for clean, organized, and AI-ready data as the bedrock for future innovation. Now, we take the next logical step. In this fourth episode, we explore how all that AI-ready data gets activated. How do we move from data foundations to the new wave of reliable, agentic AI solutions? As I teased in my recent blog, Industrial AI Needs Context Engineers, NOT Prompt Engineers, this transition requires a deliberate and structured approach. I was thrilled to welcome Vatsal Shah, co-founder and CEO of Litmus Automation, to discuss this critical link. Vatsal's journey from a hands-on industrial automation engineer frustrated by integrating systems from Rockwell, Siemens, and Yokogawa to founding a company at the heart of Industrial DataOps provides a unique and pragmatic perspective on what it takes to succeed. Would you like to be a guest on our growing podcast? If you have an intriguing, thought provoking topic you'd like to discuss on our podcast, please contact our host Colin Masson at cmasson@arcweb.com or Our Producer Tom Cabot View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

Welcome to the third installment of our ongoing conversation on Industrial Systems Engineering in the Era of AI. In this series, I’m joined by my good friend and serial entrepreneur Rick Bullotta to unpack the profound shifts AI is driving in the industrial world. Our journey began in Episode 1, where we explored the historical evolution and foundational data challenges that have long constrained industrial operations. In Episode 2, we moved from problems to potential solutions, diving deep into the concept of the Industrial Data Fabric as the critical enabler for this new era. We laid the groundwork, discussing the need for openness, the limitations of traditional data lakes, and the shift in focus from assets to processes. Now, with that foundation in place, we pivot from the theoretical to the practical. This episode gets to the heart of where immediate, tangible value is being created. We move beyond the hype surrounding large-scale infrastructure and generic AI platforms to focus on the agile, domain-focused startups that are translating AI’s potential into real-world industrial outcomes. These are the companies on the front lines—the "guerrilla innovators," as I’ve called them—who are demonstrating not just what AI can do, but what it is doing today to solve specific, high-value problems on the factory floor and beyond. Would you like to be a guest on our growing podcast? If you have an intriguing, thought provoking topic you'd like to discuss on our podcast, please contact our host Colin Masson at cmasson@arcweb.com or Our Producer Tom Cabot View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

Craig Resnick and Mark Sen Gupta from the ARC Advisory Group host a discussion on the evolving landscape of functional safety in automation in the age of Digital Transformation. Joined by special guest Noah Greene, Product Marketing Specialist for Functional Safety from Phoenix Contact, the conversation delves into the critical role of safety devices, such as configured controllers, safety relays, and safety PLCs in enhancing operational resilience and productivity. The podcast explores how the convergence of smart technologies and digital transformation is driving the development of smart safety solutions, enabling better data collection and processing to improve safety and efficiency. Noah Greene shares insights on the implementation of safety systems in both machine and process industries, highlighting the importance of adhering to safety standards and leveraging advanced technologies, such as AI and machine learning to predict and mitigate risks. Would you like to be a guest on our growing podcast? If you have an intriguing, thought provoking topic you'd like to discuss on our podcast, please contact our host Colin Masson at cmasson@arcweb.com or Our Producer Tom Cabot View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

In this episode, we'll dive deeper into the changes and challenges brought about by AI, particularly since the November 22 moment with ChatGPT. We'll explore how AI has impacted industrial systems engineering, data quality, and the utilization of massive amounts of data in factories and supply chains. Introduction Let's start with the big picture. AI has been around for a while, but the renewed focus on data quality and the challenges of handling vast amounts of data have become more prominent. The November 22 moment with ChatGPT triggered a significant shift in how we approach AI and data. Importance of Discovery One of the key aspects of an industrial-grade data fabric is the importance of discovery. Access to data, metadata, and data models is crucial for understanding and comprehending the information. This enables tooling, whether AI-assisted or analytics environments, to work effectively. Normalization is another critical factor. Ensuring common data formats at the consumption layer, such as everything in degrees Fahrenheit, is essential for consuming, discovering, and transforming data. Multistream contextualization also plays a significant role in this process. Data Storage and Manipulation Where does the data live? This is a separate issue that needs to be addressed. Whether the data is dumped into a data lake or handled ad hoc, the ability to manipulate data at cloud scale has seen significant changes. The technical obstacles are dropping, making it easier to bridge into source systems using well-described interfaces. Overall, the changes brought about by AI have had a tremendous impact on industrial systems engineering. The focus on interoperability, open systems, and solving large-scale problems has become more prominent. The technical obstacles are getting easier to overcome, and the opportunities for using AI and data fabrics are exciting. Let's continue the conversation and explore more about industrial-grade data fabrics and their role in the era of AI. Would you like to be a guest on our growing podcast? If you have an intriguing, thought provoking topic you'd like to discuss on our podcast, please contact our host Colin Masson at cmasson@arcweb.com or Our Producer Tom Cabot View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

IEEE 802.11ax Wi-Fi 6 and 6E represent major advancements in wireless technology, particularly for industrial environments, due to their incremental efficiency, scalability, and bandwidth. Key features like OFDMA allow multiple devices to communicate simultaneously on subdivided channels, reducing latency and improving spectrum use. Wi-Fi 6E introduces the 6 GHz band, significantly expanding available bandwidth and alleviating congestion. While private cellular network alternatives are increasingly popular, they are often more expensive and complex to implement. Wi-Fi 6E provides a cost-effective, reliable alternative that supports digital transformation initiatives like Phoenix Contact’s Digital Factory Now, enabling efficient data transport for AI, digital transformation, and automation.Learn more about the Innovative benefits of Wi-Fi 6 and 6E in Industry in this informative podcast. Additional Resources are available at: Industrial WLAN with Wi-Fi 6 | Phoenix Contact Industrial and Outdoor Wireless LAN Market Size Forecast | ARC Advisory Group Also feel free to reach out If you have any questions or would like further information about industrial Wi-Fi: Danny Walters, Product Marketing Specialist for Wireless Products, Phoenix Contact USA Danny Walters | LinkedIn dwalters@phoenixcontact.com Chantal Polsonetti, Vice President Industrial Network Infrastructure & Industrial Edge, ARC Advisory Group Chantal Polsonetti | LinkedIn cpolsonetti@arcweb.com Industrial WLAN with Wi-Fi 6 | Phoenix Contact Wireless LAN – the standard for wireless Ethernet. Benefit from the advantages of the new generation of Wi-Fi 6 in your applications. Would you like to be a guest on our growing podcast? If you have an intriguing, thought provoking topic you'd like to discuss on our podcast, please contact our host Jim Frazer or Our Producer Tom Cabot View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

In a recent ARC Advisory Group SPARC podcast, I had the pleasure of speaking with Steve Blackwell, Head of the Manufacturing Center of Excellence at Amazon Web Services (AWS). We dove deep into one of the most transformative shifts happening in the industrial sector today: Software Defined Manufacturing (SDM) in the Era of Agentic AI. Would you like to be a guest on our growing podcast? If you have an intriguing, thought provoking topic you'd like to discuss on our podcast, please contact our host Jim Frazer or Our Producer Tom Cabot View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

In this edition of the ARC Digital Transformation Podcast, we talk to Grant Vanderbrake and Arnold Offner from Phoenix Contact about a new technology called Ethernet APL (Advanced Physical Layer), which essentially brings Ethernet technology to the field device level at the physical networking layer. Ethernet APL is a great technology, and every major process automation vendor seems to be supporting it, but what about the cybersecurity implications associated with it? This podcast goes into the details of Ethernet APL and security, what users need to know, and how this technology could actually make OT security much more effective. Find out more at Phoenix Contact's Website: https://www.phoenixcontact.com/en-us/technologies/communication-technologies/ethernet-apl Or the Ethernet APL Organization Website: https://www.ethernet-apl.org/ ARC Advisory Group is the leading technology research and advisory firm for energy, manufacturing and infrastructure. Our coverage of technology and trends extends from business systems to Industrial AI, product and asset lifecycle management, Industrial IoT, Industry 4.0, supply chain management, operations management, energy transition, and automation systems. Our analysts and consultants have the industry knowledge and the first-hand experience to help find the best answers to the complex business issues facing organizations today. ARC’s global influence across industrial operations is unparalleled. It is driven by the passion and expertise of our analysts and consultants, who keep abreast of industry trends and developments through research and actively engaging with clients. ARC's analysts and consultants have spent most of their careers working with industrial companies and are truly passionate about helping companies achieve superior performance. ARC has 100 professionals worldwide with extensive, first-hand experience servicing a multitude of business issues, technologies, and vertical industries. Our offices are located in the US, Germany, Belgium, Japan, India, China, Singapore, and Brazil.

For industrial manufacturers, the role of Industrial Automation Distributors and a partner ecosystem has never been more important or critical than it is today. There is an urgency for industrial manufacturing companies to modernize their operating practices and technologies to successfully compete in today’s dynamic and continuously evolving marketplace. The industrial manufacturing companies that have been most successful with their digital transformation are the ones who have best leveraged their Industrial Automation Distributors and partner ecosystem. Just as how industrial manufacturers must rapidly progress on their digital transformation journey, so do the Industrial Automation Distributors and partner ecosystem, who face similar challenges with regarding technology advancement, including workforce reskilling, talent management, training, supply chain resilience, and technology specialization. This has led Schneider Electric to develop its Alliance Partner Program that provides these services to its Industrial Automation Distributors and partner ecosystem. Discussing this important topic are Amit Bhatia, Distribution Channel Director at Schneider Electric; Rakesh Jain, CEO of Rexel India; and Craig Resnick, Vice President of the ARC Advisory Group.

For those who may not know him, Rick is a true titan in the industrial technology landscape. As a co-founder of Lighthammer (which evolved into SAP Manufacturing Integration and Intelligence) and ThingWorx (later acquired by PTC), Rick has consistently been at the forefront of innovation. His pivotal work has shaped connected systems, driven digital transformation, and advanced intelligent automation. I consider Rick a serial entrepreneur, a valued advisor to startups and investors, and a leading expert in industrial AI, particularly in advanced manufacturing and the crucial intersection of data-driven insights with industrial operations. In our first discussion, we laid the groundwork by exploring the foundational data challenges Rick has encountered and tackled over his decades of experience – from the early days of connecting disparate systems on the factory floor to the rise of Industrial IoT and the evolving nature of industrial data.

Examine of cutting-edge digital technology with industry experts Luciano Botto and Libanio Souza. In this compelling podcast episode, recorded live at the ARC 29th Annual Conference, we explore the transformative power of new digital solutions in process control. Discover how these innovations are enhancing maintainability, interoperability, and quality improvement in the industry. Learn about the groundbreaking OPC UA and OPA standards, and how they are paving the way for smarter, more efficient operations. Join us as we discuss the challenges and opportunities of adopting these technologies. Don't miss this insightful conversation that promises to reshape the future of process control!

Are you interested in taking your sensor-driven real-time insights to the next level? The latest trends in real-time solutions driving operations excellence for anomaly detection with emissions and corrosion monitoring leveraging Artificial Intelligence of Things (AIoT) come to the forefront in my recent discussion with Molex executive Krishna Uppuluri, from mPACT2WO. #AIoT #RealTimeSolutions #Innovation #OperationsExcellence

In this episode of ARC Advisory's Industrial AI Series, Jim Frazer sits down with Colin Masson, ARC's Director of Research, to delve into the transformative world of Industrial AI. Together, they dissect how Industrial AI stands apart from general AI, exploring the powerful tools and techniques that drive data insights, optimize operations, and enhance safety in mission-critical environments. From the nuances of supervised learning to the promise of causal AI, Frazer and Masson provide a comprehensive introduction to AI’s role in reshaping the industrial landscape. Whether you're navigating AI's complexity or curious about its business applications, this episode is packed with insights that highlight how technology is revolutionizing industrial processes today. -------------------------------------------------------------------------- Would you like to be a guest on our growing podcast? If you have an intriguing, thought provoking Digital Transformation topics you'd like to discuss on our podcast, please contact our host Colin Masson or Our Producer Tom Cabot View all the episodes here: https://thedigitaltransformationpodcast.buzzsprout.com

This podcast features Colin Masson of ARC Advisory Group and Dustin Johnson, CTO of Seeq - a global provider of advanced analytics, AI, and enterprise monitoring for industrial companies - discussing the evolving role of artificial intelligence (AI) in industrial settings. Key topics include the transformation of user interfaces through generative AI, the challenges of applying large language models to time-series data, and the distinctions between AI assistants and agents. Johnson emphasizes the importance of human-in-the-loop systems and the need for AI tools to be both powerful and user-friendly. The conversation concludes with predictions for the future of industrial AI, acknowledging both the hype and the potential for significant advancements in 2025 and beyond.

In this episode, Colin Masson, Research Director for Industrial AI at ARC Advisory Group, and Bryan Saunders, Global Director and Head of IoT Industry Consulting at SAS, delve into the critical aspects of the AI and analytics lifecycle in the industrial sector. They explore key areas, including: Data Management:Model Development:Deployment of Insights:The Role of Gen AI: During their conversation, Colin and Bryan also discuss the transformative potential of Gen AI, particularly in synthetic data generation, assisting with code creation, and as a digital assistant to upskill the workforce. Gen AI is also seen as a way to address the skills gap and improve knowledge transfer in the industrial sector. This episode offers a pragmatic view of AI in the industrial sector, emphasizing the need to focus on business outcomes, use cases, and the importance of data governance. It provides valuable insights for those looking to leverage AI and analytics effectively in their operations.