Europe’s industrial manufacturers are caught in a bind. Profitability is slipping, productivity has plateaued, and traditional cost-saving levers have lost their edge. But now, Generative AI is emerging as more than a technological trend—it’s fast becoming a strategy for turning the sector’s fortunes around. This became evident in a study, conducted by Strategy& in partnership with VDMA Software and Digitalization, and presented at Hannover Messe in March 2025.

The term ”Industry 4.0” often emerges in conversations about the future of manufacturing. Industry 4.0 is not merely technological upgrade; it’s a fundamental transformation in how factories operate.

While global attention is focused on the conflicts in Ukraine and Gaza, and the changes in international trade rules, a crisis is unfolding in the background—one that threatens the very foundations of our economy and civilization: the climate crisis.