Industrial ai

Why 95% of All AI Projects Fail - Boris Scharinger | Podcast #174

Why 95% of All AI Projects Fail - Boris Scharinger | Podcast #174

Boris Scharinger, Industrial AI Strategist at Siemens and author of "Industrial AI: From Pilot to Profit," discusses why 95% of AI proofs of concept fail in industrial settings. He highlights the 5-10x cost multiplier from pilot to production, the critical role of the "harness" around AI models, and the unique challenges of data access and legacy systems in physical environments. Scharinger advocates for a two-tiered investment strategy, separating foundational data capabilities from use-case-specific ROI, and addresses cultural resistances from engineers. He provides guidance on differentiating commodity from strategic AI applications and how to effectively scale industrial AI for profit.

Semantic Blindness: 500,000 Sensors Confused an LLM - Raahul Singh & Vanč Levstik, Phaidra

Semantic Blindness: 500,000 Sensors Confused an LLM - Raahul Singh & Vanč Levstik, Phaidra

Modern LLMs struggle with combinatorial engineering problems in industrial settings due to "Semantic Blindness" – an inability to understand physical system topology, scale efficiently, or handle repetitive naming conventions. This talk introduces a hybrid AI architecture that combines LLMs for high-level planning with deterministic systems for execution, leveraging hierarchical structures and pattern-based search. This approach achieves 100% accuracy and flat operational costs at massive scales, demonstrating an "inversion" of the Software 1.0/3.0 paradigm where AI-native systems mature by integrating deterministic code for reliable, structured tasks.