AI and sustainability: a look at the future of industry
A keynote presentation at a major European manufacturing conference in September has put a spotlight on how industrial firms are rethinking their business models around data, artificial intelligence and long-term customer service. For UK manufacturers and engineering businesses, the discussion offers a practical view of what servitization actually requires when you move beyond the technology itself.
Scm Group, an Italian machinery manufacturer, used the IFIP International Conference on Advances in Production Management Systems to explain how it has shifted from selling equipment to providing technology partnerships across the full lifecycle of its products. The argument presented was that AI becomes commercially useful only when organisations change how they work, not simply when they add algorithms to existing processes.
This matters for UK businesses navigating net zero, procurement compliance and supply chain resilience. Servitization, where manufacturers sell services rather than just products, can improve asset utilization and reduce waste. However, it also demands new skills, data governance and customer relationships. Consequently, companies need to understand what the transition actually involves before committing resources or making claims in tenders.
Conference focus on sustainable and data-driven production
The conference took place in Bergamo, Italy, from 13 to 17 September 2026. It was organised under IFIP Working Group 5.7 and brought together researchers and industry practitioners to discuss how sustainability, data and human factors are reshaping production systems.
Published themes included artificial intelligence and machine learning in manufacturing, digital transformation strategies, smart manufacturing, service systems design, and eco-efficient circular industrial systems. The event's stated aim was to shape the future of industry through sustainable, data-driven and human-centric production systems.
For businesses exploring carbon reduction or circular economy models, these topics are no longer abstract. They increasingly appear in procurement specifications, regulatory requirements and customer expectations. As a result, understanding how other manufacturers are integrating these elements can help UK firms benchmark their own progress.
Scm Group's shift from machinery sales to lifecycle services
Alessandra Benedetti, Enterprise Transformation and Technologies Director at Scm Group, delivered a keynote titled "Leveraging AI to Accelerate Servitization." The presentation described how the company has moved from selling machinery to offering technology partnerships that support customers throughout the full lifecycle of their equipment.
The company explained that its digital transformation integrates technologies, data, expertise and organisational structure. The goal is to create new services and customer relationships based on machine and process data, rather than one-off equipment sales.
Scm Group emphasised what it calls "collective intelligence," which combines machine-generated data with human expertise. This approach enables after-sales services, diagnostics, predictive maintenance, knowledge access and greater customer autonomy. Importantly, the presentation argued that AI value in industry depends not only on connectivity or algorithms, but on broader organisational change involving technology, people, processes, customer interfaces and ecosystem relationships.
This perspective aligns with the conference's broader interest in human-centric AI and data governance in production systems. It also highlights a practical challenge: deploying AI tools is relatively straightforward, but changing how your business operates around those tools is far more demanding.
What servitization means for manufacturing businesses
Servitization describes a business model where manufacturers sell outcomes, uptime or performance rather than physical products alone. For example, instead of selling a machine, a company might sell guaranteed operating hours, predictive maintenance contracts or performance-based service agreements.
This model can improve sustainability outcomes because it creates financial incentives for manufacturers to design products that last longer, consume less energy and are easier to repair. It also allows customers to access equipment without large capital outlays, which can improve cash flow and reduce asset write-offs.
However, servitization requires significant changes. Manufacturers need reliable data from installed equipment, which means investing in sensors, connectivity and data infrastructure. They also need analytical capability to interpret that data and customer-facing teams who can deliver service contracts rather than transactional sales.
For UK SMEs, this presents both opportunity and risk. Businesses that successfully transition to service models can build recurring revenue streams and strengthen customer relationships. On the other hand, companies that adopt the language of servitization without changing their operations may find themselves unable to deliver on service commitments or meet procurement requirements that expect genuine lifecycle support.
AI as a business model enabler, not just a technical tool
The Scm Group presentation positioned AI as something that enables new business models rather than simply improving existing processes. This distinction is important because it changes how businesses should evaluate AI investments.
If AI is treated as a technical tool, the business case is built around efficiency gains, cost reductions or productivity improvements within current operations. However, if AI enables a shift to servitization, the business case must account for new revenue streams, customer retention and competitive positioning in markets where service matters more than price alone.
For example, predictive maintenance powered by machine learning can reduce unplanned downtime. That saves money. Nevertheless, it also allows a manufacturer to offer uptime guarantees to customers, which creates a new service product that competitors without the same capability cannot match.
This framing has implications for how UK businesses approach digital transformation. Investing in AI without considering how it changes your customer relationships or revenue model may deliver only marginal gains. In contrast, businesses that redesign their operations around data and service can create defensible competitive advantages.
Organisational change and ecosystem relationships
The reported view from Scm Group is that successful servitization requires changes in processes, organisational structure, customer interaction and partner ecosystems, not just software deployment. This echoes findings from wider research on digital transformation, which consistently shows that technology adoption fails when organisations do not address culture, skills and workflows.
For UK manufacturers, this means that servitization projects should include workforce training, process redesign and investment in customer-facing capabilities. It also means working with supply chain partners who can support service delivery, not just component supply.
In practical terms, this might involve training engineers in data analysis, developing service contracts with clear performance metrics, or establishing partnerships with software providers, connectivity specialists or maintenance contractors. The investment is broader than buying equipment or licensing software.
Commercial and sustainability implications for UK businesses
Better maintenance, more efficient use of assets and stronger product lifecycle support can reduce waste and improve resource utilization. Consequently, servitization aligns with circular economy principles and net zero strategies that prioritize asset longevity and material efficiency over disposal and replacement.
For businesses tendering for public sector contracts, servitization can help meet requirements under PPN 06/21, which asks suppliers to publish carbon reduction plans and demonstrate how they will reduce emissions. Service models that extend product life, reduce energy consumption or improve maintenance efficiency contribute directly to those objectives.
There are also financial considerations. Shifting from product sales to service contracts changes revenue recognition, cash flow and risk profiles. Service models can create recurring revenue, which improves financial stability. However, they also expose manufacturers to performance risk, because they are now responsible for uptime and outcomes, not just delivery of equipment.
This risk can be managed through data, which is where AI becomes commercially relevant. Predictive analytics can identify potential failures before they occur, allowing manufacturers to schedule maintenance proactively rather than reactively. This reduces warranty costs, improves customer satisfaction and makes service contracts financially viable.
Key facts from the conference and presentation
- The IFIP International Conference on Advances in Production Management Systems took place in Bergamo, Italy, from 13 to 17 September 2026.
- Conference themes included AI and machine learning in manufacturing, digital transformation, smart manufacturing, service systems design, and eco-efficient circular industrial systems.
- Scm Group's keynote, delivered by Alessandra Benedetti, was titled "Leveraging AI to Accelerate Servitization."
- The company described a shift from selling machinery to providing technology partnerships that support customers across the full lifecycle of their equipment.
- Scm Group's approach combines machine-generated data with human expertise to enable after-sales services, diagnostics, predictive maintenance and greater customer autonomy.
- The presentation argued that AI value in industry depends on broader organisational change, not just technology deployment.
- The conference was organised under IFIP Working Group 5.7 and focused on sustainable, data-driven and human-centric production systems.
How UK manufacturers can apply these insights
Businesses considering servitization should start by assessing whether their current data infrastructure can support service delivery. This means understanding what data you collect from installed equipment, whether that data is accessible in real time, and whether you have the analytical capability to turn data into actionable insights.
Next, evaluate whether your team has the skills to deliver service contracts. This includes technical skills such as data analysis and predictive maintenance, but also commercial skills such as contract design, pricing of service agreements and customer relationship management.
It is also worth considering how servitization affects your supply chain. If you are responsible for uptime and performance, you need suppliers who can respond quickly to maintenance needs and component failures. Therefore, supplier selection criteria may need to change to prioritize responsiveness and reliability over cost alone.
From a sustainability perspective, servitization can support net zero strategies by improving asset utilization, reducing waste and encouraging design for longevity. However, these benefits need to be measured and documented. Businesses should track metrics such as product lifespan, energy consumption per unit of output, maintenance frequency and end-of-life recovery rates. This data supports carbon reporting and helps demonstrate compliance with procurement requirements.
Finally, be realistic about timescales. The Scm Group presentation highlighted that servitization requires organisational change, not just technology deployment. Consequently, businesses should plan for multi-year transitions rather than quick wins. This includes investing in training, developing service capabilities and building customer trust in new service models.
Where to find further information and guidance
The IFIP Working Group 5.7 publishes research and case studies on advances in production management systems. This material can help businesses understand how other manufacturers are addressing similar challenges.
The Department for Energy Security and Net Zero provides guidance on net zero strategies and how businesses can reduce emissions through improved asset management and circular economy practices.
For businesses preparing carbon reduction plans to meet procurement requirements, the SBS net zero program offers practical support on carbon reporting, Scope 3 emissions and supply chain engagement.
The British Standards Institution publishes standards on asset management, maintenance and service design that can help businesses develop robust servitization models. Similarly, the Institution of Engineering and Technology provides resources on digital transformation and data governance in manufacturing.
Businesses exploring sustainable procurement practices can find guidance through SBS procurement support, which covers how to align service models with public sector procurement criteria and demonstrate environmental performance in tenders.