Industry 5.0: The Future of Manufacturing, Human and AI Collaboration

Revisiting the 1957 blockbuster Hindi movie “नया दौर” (“New Era”), we are reminded of the timeless struggle against technological change. The film vividly portrays the fear and resistance people experience towards new technology, anticipating job loss. This happens because industrial revolutions have historically prioritized shareholder value maximization, often at the perceived expense of human contributions to the business.

Fast forward to the present, Industry 4.0 is making waves. It utilizes cutting-edge technologies such as industrial IoT, robotics, automation, simulation, data analytics, machine learning, and AI. Its goal is to enhance agility, quality, and efficiency while enabling new business models. However, this era has also seen a reduction in human involvement, with a significant emphasis on process automation, often pitting humans against machines to achieve outcomes at greater speed and lower cost.

On a positive note, looking ahead, Industry 5.0 aims to reintroduce the human element into the industrial landscape. It envisions a future where machine intelligence and human creativity collaborate seamlessly, fostering increased interaction and cooperation between humans and machines. Let’s take a moment to understand more about Industry 5.0 and its implications.

What is Industry 5.0?

The European commission defines it as:

“An industry that aims beyond efficiency and productivity as the sole goals and reinforces the role and the contribution of industry to society. It places the wellbeing of the worker at the centre of the production process and uses new technologies to provide prosperity beyond jobs and growth while respecting the production limits of the planet.”

“It complements the existing Industry 4 approach by specifically putting research and innovation at the service of the transition to a sustainable, human-centric and resilient European industry.”

In industry 5.0, the focus will shift from merely generating economic value to creating broader societal value. Let us examine each of the three key values of Industry 5.0 in detail:

Industry 5.0: Pioneering a Sustainable Future

Sustainability in Industry 5.0 goes beyond just reducing or mitigating environmental damage; it seeks to create positive environmental change, a concept referred to as ‘Net Positive.’ This goal envisions a world where companies are part of the solution, rather than contributors to the problem or mere practitioners of ‘greenwashing.’

Renewable Energy: Leveraging wind, solar, and other renewable sources helps companies reduce their carbon footprint.

Reducing Waste with Technology: Traditional maintenance practices, such as time-based (annual car servicing) or usage-based (servicing after every 10,000 km), often lead to the unnecessary replacement of perfectly functional parts. This not only generates waste but also incurs additional costs. Predictive analytics enables a shift to need-based maintenance, where parts are replaced only when they are on the verge of failure. This approach conserves resources and enhances operational efficiency.

Industry 5.0 aims to integrate these technologies to foster more sustainable operations, ensuring that businesses contribute positively to the environment while maintaining economic viability.

Human-Centric Approach in Industry 5.0

The term "human resources" has long been familiar to us. Until Industry 5.0, humans were often viewed merely as resources to drive organizational profit. However, Industry 5.0 marks a significant shift, with organizations now focused on serving people rather than the other way around. The traditional mindset of "adding value to customers" is evolving to include "adding value to employees" as well.

Industry 5.0 is characterized by the synergy between humans and intelligent machines. A prime example is the emergence of "cobots" or collaborative robots, designed for seamless and intuitive interaction with humans.

By taking on repetitive and hazardous tasks, cobots allow humans to concentrate on creative and problem-solving activities. This collaboration enhances productivity while increasing employee satisfaction by enabling them to focus on more meaningful, value-added tasks.

Resilience in Industry 5.0

Traditionally, industries have optimized their operations for maximum efficiency. However, the COVID-19 pandemic and other unforeseen events have exposed the vulnerabilities of such "efficient" organizations. These disruptions can severely impact supply chains and overall business operations.

Resilient organizations must anticipate crises and responding swiftly to maintain business continuity. Instead of solely focusing on growth, profit, and efficiency, these organizations prioritize stability and preparedness, ensuring they can navigate through challenging times without significant disruptions.

Moreover, predictive analytics enhances resilience by identifying potential issues before they arise, allowing organizations to take proactive measures to mitigate risks and maintain stability.

Challenges for Industry 5.0

Despite the many benefits that Industry 5.0 brings to the table, there are still several challenges to overcome. While these may seem daunting, they can be addressed over time. Some of these challenges are:

· Energy and Infrastructure Demands: Industry 5.0 technologies, like Industry 4.0, require extensive instrumentation, data transfer, storage, and computational power. This results in significant energy and cooling demands. For Industry 5.0 to align with sustainability goals, these energy demands must be carefully managed.

· Complex Implementation of Advanced Technologies: Integrating automation, industrial robots, and AI is a complex process. Beyond the high initial investment, businesses must meticulously plan and test these systems to identify and resolve any bugs or hazards.

· Skill Development and Training: The shift to Industry 5.0 requires new skills, demanding substantial investment in workforce training. Companies may face challenges in upgrading their production lines and ensuring their workforce is adequately prepared for new roles.

· Human Resources Challenges: Industry 5.0 aims to create more fulfilling roles for employees displaced by automation, but this introduces HR challenges such as training, redefining responsibilities, reassessing compensation, and persuading staff that role changes are beneficial.

Perhaps the most significant challenge is the willingness to adopt Industry 5.0 principles. Unlike the immediate profit focus of traditional business models, Industry 5.0 emphasizes long-term benefits for the business, employees, and the community. Companies will have to realign their objectives to successfully embrace this new industrial revolution.

Despite these challenges, Industry 5.0 is on the horizon and companies are preparing to embark on this journey. It will be fascinating to see how the human + machine approach can push boundaries and create new frontiers for generations to come.

By Sujal Shah, Director – Solution Architecture at eInfochips, an arrow company