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- [00:00]
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Bloomberg Audio Studios Announcer
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Interviewer
AIR is moving beyond chat bots and onto the factory floor, helping manufacturers boost productivity. With industrial AI becoming a bigger part of the conversation. Joining us now is Siemens CEO Roland Bush, who recently met with European Commission President Ursula von der Leyen and other tech leaders to discuss AI's role in Europe's industrial future. But I would note as well, Roland, you the first conversation I had this year we started 2026 with Jense Wang talking about the transition into the physical world, just very simply to. To start. Why Siemens is betting so much on industrial AI?
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Roland Busch
Actually, because Siemens is really geared for this moment to bring AI into the real world. We call it industrial. Why? You need a couple of things. Number one is you need a technology stack. And the stack includes hardware and software. Both are super relevant. Number is domain. Know how. We know how to build things. We are on the shop floor. The next one is data. We have a lot of data, our own data, data shared with our customers and partners. And we have the trust of our customers because when the AIR hits the real world, hallucination is not an option. So you need hardcore results. They should work. So we have all this and we can bring it now to the real world. And last but not least, we have great partners like in media, like some others who are with us in making this transform for our customers.
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Interviewer
I asked you at CES in January, give me a case study, an example, some evidence of AI in a factory anywhere in the world. Fast forward to June. Is it real now? Is there a deployment you can point to?
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Roland Busch
Please, it's really no. And. And we can talk about the design phase, the manufacturing phase and the operation phase when your assets are in the field. But you talked about example on the. On the shop floor. Actually, we now launched our Eigen Engineering Agent. What is it? It is an agent which programs an industrial PC for you. So if you have a cutting chop on the shop floor and the cutting is not precise anymore, now an engineer has to go there, reprogram your PLC and so on. Eigen Engineering Agent does it for you. You say, I mean my cutting machine is not working. Precisely. Eigen Engineering Agent analyzes the problem, breaks the problem down, looks for all the data, the mach genes, the job which has to be done, analyzes it, develops a code, runs it compiles it. If it doesn't work, it compiles it over again, fixes it until you can say now go and you push a bottom. And then PLC is running with the same precision as before. So we are brought in about 50% higher productivity while the quality of your programming is increasing by 80%. So this is real fact. And now we're introducing another function where elect electrical design comes also into this, into the place. But it's a real, a real. And this, this was not available in the market so far. We brought it to the market and ready to expand to other use cases
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Interviewer
to either by geography or by sector. Is there a market where there's just more speed here? You know, we reflected on your meeting with the European Commission. Notoriously, red tape can get in the way. What are you seeing in different markets around the world?
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Roland Busch
I mean the hottest market as you can imagine currently is AI factories and data centers. And here we are really in the design phase. Together with Nvidia, we create a blueprint, a white paper for how an AI factory in the future looks like. And guess what? It's based on a digital twin. And this digital twin is optimized with AI obviously. But if you talk about other markets, for example, the fast growing markets which really need productivity and speed, semiconductors, a lot of investment going there that a lot of fab spills, pharmaceutical, there's a lot of investment also going. United States aerospace and defense. We are ramping up our capabilities to produce stuff. So there are a lot of sectors. And then last but not least, I mean the car industry is also under pressure. They need to evolve faster, having faster cycles, being more flexible in their production. So I can go on and on and the topic is always the same. It will be faster in your design process using AI, coming from simulation which verifies to simulation which creates new designs. And all the way in the, in the factory, way down to the point that you are deploying more and more robots. And guess what, Robots are also AI based automation devices.
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Interviewer
Siemens has an almost 180 year history as an industrial company, an engineering company. You know, the sense I've had from you, Roland, in the times we've spoken over the last 12 months and more is you are positioning Siemens as a technology company. How will your investments, your attitude towards M and A reflect that? And when you think about the market of today, the volatility we see in the technology sector, do you think that Siemens is being treated and valued as a technology company?
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Roland Busch
Well, the short answer to the last point, not yet, but we are working on it. But here comes the point. Over the last 15 years or so we invested $30 billion in building up our software suite. It's the most comprehensive digital twin can be built with Siemens technology. And it's a physics based digital twin with a photorealistic representation using Nvidia technologies for example. So and that's unique. All in all, we have 9.4 billion in 2025, 9.4 billion euros in digital revenue, including software. We are going to double it until. So this is a fast growing high margin business and it's now even supercharged with AI. We rewrite our software so it can be used by engineers and agents. So that means you can see higher growth rates because you can democratize it and the accelerating simulation. And again, we are supercharging our operations software on the shop floor with AI technology. So yes, and we have the advantage again to combine the real and digital world. You need both. Hardware is more important than ever. I think about the data centers built about how you, how robotics go through the market to the shop floor. So therefore this combination is unique and we keep on going investing. It's a transformation, you mentioned it almost 80 years. We're in the fastest transformation of history and we are on the right track. But it's, it requires again super fast adoption. But also for our customers, which we are supporting.
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Interviewer
Fresh from one of Europe's biggest keynotes. Fresh from meeting with Europe's most important leaders. Roland Bush, Siemens CEO, back on Bloomberg Tech. Thank you very much indeed.
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