When Industry 4.0 was first coined (circa 2011), AI was primarily “Deterministic” and “Predictive.” It was about classifying defects or predicting when a something might fail. Since then, Generative AI (GenAI) and Agentic AI has emerged and has done significant advances in terms of core technology components and its applications. In my discussions with some industry colleagues on understanding where Industry 4.0 stands today with these AI advancements, the sense I got was there is a belief, albeit wrong, that Industry 5.0 has replaced Industry 4.0 due to these advancements. So, before we talk about what these AI advances do to Industry 4.0, first lets us first get the misunderstanding out of the way in one sentence – Industry 5.0 complements the existing Industry 4.0 paradigm, not replace it, by highlighting research and innovation as drivers for a transition to a sustainable, human-centric and resilient industrial model.
A helpful way to view this is as two distinct but integrated layers:
- Industry 4.0 is the “Technology Layer”: It focuses on machine-to-machine communication, IIoT connectivity, and autonomous digitalization to drive efficiency.
- Industry 5.0 is the “Value Layer”: It serves as the “mission statement” for manufacturing, providing an ethical and societal wrapper that gives the technology its purpose.
Industry 5.0 was formally codified by the European Commission (EC) in 2021 with learning from disruptions of Covid-19 pandemic (Ref 1).
This Value Layer transitions the industry from a “Human-Out-of-the-Loop” model to a “Human-at-the-Center” collaboration by prioritizing three core pillars:
- Human-Centricity: Technology is designed to adapt to the worker, treating them as an “investment / asset” rather than a mere cost or resource.
- Sustainability: The goal shifts from simple efficiency to “Net Positive” impact, incorporating circular economy principles and low-carbon manufacturing.
- Resilience: Influenced by the 2020–2022 global supply chain shocks, this pillar prioritizes a factory’s ability to pivot quickly (agility) over simply chasing the lowest possible unit cost.
If anybody is interested in the Intellectual Ancestor of Industry 5.0 – it is Japan’s “Society 5.0” (Ref 3).
One thing to guard against is – many technology vendors popularized an earlier, narrower version of Industry 5.0.
- The Version: In this view, Industry 5.0 is simply Human-Robot Collaboration. It’s the era of the “Cobot” (Collaborative Robot), where the precision of a machine meets the creativity/craftsmanship of a human.
- Cautionary Note: If you hear a hardware vendor talking about 5.0, they are usually referring to this “Man + Machine” technical setup. If you hear a policymaker or C-suite executive talking about it, they are usually referring to the broader “Human-Centric/Sustainable” EC framework.
Comparison at a Glance
| Feature | Industry 4.0 | Industry 5.0 (EC Formal) |
| Core Driver | Technology & Efficiency | Value & Purpose |
| Primary Goal | Automation & Connectivity | Human Wellbeing & Resilience |
| Role of AI | To replace/optimize human tasks | To augment/empower human talent |
| Success Metric | OEE (Overall Equipment Effectiveness) | ESG (Environmental, Social, Governance) |
Now let us get back to what does the advances in Generative AI (GenAI) and Agentic AI mean for Industry 4.0 as it is still the ‘Technology Layer’ today. From what you see in the industry, below are the key alignments and shifts that have occurred to accommodate this evolution. Each of the points below are larger subjects. The view below is high level. Most of the shifts and alignments below are either in very early prototypes or active research.
- From “Predictive” to “Generative” Digital Twins
In the original Industry 4.0 framework, a Digital Twin was a virtual replica that mirrored physical reality to monitor and predict (predictive mirrors).
- The Shift: With GenAI, Digital Twins have become Simulation Engines. Instead of just saying “this machine will fail,” GenAI can generate 10,000 synthetic failure scenarios to train models where real-world data is scarce (addressing the “small data” problem in niche manufacturing).
- Agentic Alignment: Efforts are moving toward Agentic Digital Twins. These are not just mirrors; they are “agents” that can autonomously run “what-if” simulations in the background and then execute a physical change in the factory via the PLC (Programmable Logic Controller) without human intervention – currently primarily seen in research and pilot deployments.
- The Evolution of “Interoperability” (Natural Language Integration)
Original i4.0 focused heavily on vertical and horizontal integration via rigid protocols (OPC UA, MQTT, etc.).
- The Shift: GenAI has introduced Semantic Interoperability. The “language barrier” between a legacy ERP system and a modern MES (Manufacturing Execution System) is being bridged by LLMs that can translate unstructured data and code.
- Impact: We no longer require a specialized data scientist to write SQL queries for a report; a floor manager can ask an “Agentic Orchestrator” in natural language: “Rebalance the assembly line for 15% higher throughput using the current available staff,” and the agent negotiates the parameters across systems.
However, production deployments must pair language interfaces with strong schema grounding, access controls, and transactional guarantees before trusting agentic orchestration to change plant state. So, this necessitates transactional safeguards, conflict resolution, and human oversight in early stage.
- Re-defining the “Cyber-Physical System” (CPS)
The original definition of a CPS was a mechanism controlled or monitored by computer-based algorithms.
- The Shift: We are seeing the rise of Cognitive-Physical Systems (Cog-PS).
- Non-Agentic GenAI: Used for “Copilots”—or example, assisting maintenance technicians by synthesizing thousands of pages of manuals into a 3-step repair guide.
- Agentic AI: These systems now possess multi-step reasoning. An agentic robot doesn’t just stop when it sees an obstacle (Traditional AI); it reasons through the delay, recalculates its path, notifies the next station of the delay, and adjusts its own speed to catch up.
But widespread closed‑loop autonomy requires staged validation, governance, and deterministic fallback. Agentic CPS are real and promising, but the path to safe, scalable autonomy is staged: build trust with copilots, validate with simulations and pilots, then expand agentic authority under strict governance.
- Convergence of Industry 4.0 and Industry 5.0
The emergence of GenAI has accelerated the transition to Industry 5.0, which adds “Human-Centricity” and “Resilience” to the efficiency of 4.0. This bridge can be referred to as Industry 4.0+, a reflection of how industries are extending beyond foundational digitalization to achieve higher autonomy, agility, and intelligence. A high-level view of differences is below.
|
Dimension |
Industry 4.0 (Traditional AI) |
Industry 4.0+ (GenAI / Agentic) |
| Worker Role | Operator of automated systems. | Collaborator with AI “Co-pilots.” |
| Optimization | Localized efficiency (OEE). | System-wide “Reasoning” and “Self-Healing.” |
| Design | CAD-based, human-led. | Generative Design (AI creates 100 iterations). |
| Maintenance | “If X, then Y” (Predictive). | “X happened, I’ve ordered parts and rescheduled.” |
Industry 5.0 emphasizes human‑machine collaboration, neuroergonomic design, and operator empowerment—outcomes that GenAI copilots (AR guidance, SOP summarization, personalized dashboards) directly enable. Combining generative simulation, RAG grounding (Ref 4), and agentic orchestration (Ref 5) lets factories reason across supply, scheduling, and maintenance to self‑heal after disruptions, aligning with the complementary nature of 4.0 and 5.0.
- Updated Standards and Frameworks
Organizations like Platform Industrie 4.0 and NIST have begun updating their reference architectures (like RAMI 4.0) to include these new “Agentic” layers:
- ISO/IEC 42001 (2023/2024): A new management system standard for AI that specifically addresses the governance needed for autonomous agents in industrial settings.
- Synthetic Data Protocols: New frameworks are emerging to validate “Synthetic Data” generated by AI to ensure it doesn’t lead to “Model Collapse” in industrial safety systems.
Note: For concept of Model Collapse, refer to my blog ‘Synthetic Data: A Double-Edged Sword?’ (Ref 2)
Many use the term “Industry 4.0+” mentioned above to bridge the gap between what industry was promised in 2011 and what is possible today. Below are some reasons why this informal term exists:
- The “Implementation Gap”
The original Industry 4.0 framework was highly theoretical. Many companies found that the “jump” to a fully autonomous, dark factory was too large.
- The Term’s Purpose: Practitioners began using “4.0+” to describe the pragmatic, incremental upgrades to the existing 4.0 roadmap. It usually signifies the integration of Generative AI and Edge Computing into a system that was originally designed largely for IIoT and Predictive Maintenance.
- Technical Maturity vs. Philosophical Shift
The reason we don’t have a formal “4.0+” definition is that the industry chose to move the “version number” to 5.0 to signal a change in intent, not just technology.
- Industry 4.0+ is seen as a Vertical Upgrade: Better algorithms, faster 5G/6G, more powerful Agentic AI. It’s about doing the same things (efficiency, throughput) much better.
- Industry 5.0 is a Horizontal Expansion: It adds new dimensions like worker well-being, CO2 neutrality, and supply chain resilience.
- How Different Groups Use “4.0+”
Because it isn’t formal, the definition potentially shifts depending on who you are talking to:
|
Player |
Their version of “Industry 4.0+” |
| Software Vendors | Usually means “Our software now has a GenAI Copilot.” |
| Academics | Refers to “Cyber-Physical-Social Systems”—the math of 4.0 meeting human behaviour. |
| System Integrators | Refers to “Brownfield 4.0″—upgrading legacy 3.0 machines with 4.0 intelligence using modern AI wrappers. |
The best way to ensure that the vendors are really talking about solutions that have accommodated the recent AI technology advancements and not get blindsided by ‘+’, is to look at the AI Agency Level:
- Level 1: AI observes / predicts / prescribes (Traditional 4.0). Based on patterns programmed. Very deterministic.
- Level 2: AI suggests (Copilots/Non-agentic GenAI). Cognitive, knowledge driven, multidimensional
- Level 3: AI executes & negotiates (Agentic 4.0+). Exhibits reasoning and multi-step autonomy.
These levels convey that the movement from Industry 4.0 to 5.0 as moving from “Smart Manufacturing” to “Thoughtful Manufacturing” as many in industry have started calling it.
In a separate blog post, we will explore how Industry 4.0 product vendors are responding to 4.0+ opportunity and 5.0 requirements.
References:
- Industry 5.0 , Towards a sustainable, human-centric and resilient European industry: https://op.europa.eu/en/publication-detail/-/publication/468a892a-5097-11eb-b59f-01aa75ed71a1/
and
https://op.europa.eu/en/publication-detail/-/publication/aed3280d-70fe-11eb-9ac9-01aa75ed71a1/language-en - Synthetic Data: A Double-Edged Sword?’: https://aithoughts.org/synthetic-data-a-double-edged-sword/
- Industry 5.0, seriously?: https://investigationsquality.com/2025/05/31/industry-5-0-seriously/#:~:text=While%20Industry%204.0%20focused%20primarily,termed%20an%20%E2%80%9CImagination%20Society%E2%80%9D.
- Grounding AI Responses in Factual Data: https://medium.com/@minh.hoque/retrieval-augmented-generation-grounding-ai-responses-in-factual-data-b7855c059322
- Agentic orchestration: https://www.uipath.com/ai/what-is-agentic-orchestration
