High initial costs, implementation complexity, and lengthy return on investment remain: these misconceptions remain the primary barriers to artificial intelligence adoption in manufacturing. While most technology providers promote cloud-based solutions, an alternative approach is emerging: the gradual implementation of AI, starting at the component level. This strategy enables manufacturers of all sizes to harness AI potential effectively without significant upfront investment.
Intelligence at the component level
A significant proportion of manufacturing facility failures can be predicted through data analysis from individual components. Advanced yet effort-free analytics at the servo drive level enable self-monitoring and diagnosis of potential issues in surrounding machine parts. Frequency inverters utilize AI algorithms to diagnose the root causes of failures, while industrial robots enhance their paths in real-time, significantly boosting efficiency and improving quality.
A crucial element of this approach is the ability to respond instantly to equipment anomalies or predict them in advance. Intelligent components analyse data in real-time, enabling rapid parameter adjustment or machine shutdown before serious failures occur. “Based on feedback from vast amounts of manufacturing facilities of all sizes we know that components equipped with AI-driven intelligence greatly reduce unplanned downtime. Such analytics happens automatically and does not require any knowledge in data science”, explains Piotr Siwek, Digital Director EMEA at Mitsubishi Electric Factory Automation.
From intelligent components to smart factory
The scalability of this approach to AI implementation significantly reduces deployment costs compared to comprehensive cloud solutions. After implementing intelligence on the component level, whole production lines can benefit from data analysis by integrating PLC control systems with AI algorithms. As factories face increasing demands for data analytics, edge-level solutions can be deployed while keeping all the factory data in-house.

A significant advantage of this approach is enhanced data security. Local processing minimises the risk of cyber-attacks and data breaches, which is particularly crucial for manufacturing facilities working with sensitive data or technologies.
“The key to success is starting with small, measurable projects. In one European factory, we began with AI implementation in welding applications. Edge-level data analytics performed with MaiLab achieved nearly 100% accuracy of failure predictions. The quality results encouraged the client to expand the project across the entire production line”, adds Siwek.
When cloud makes sense
Industry experts predict the growing importance of hybrid AI solutions, combining component-level analytics with selective cloud utilisation. Cloud solutions excel in cases requiring historical data analysis across multiple facilities or supply chain optimisation.
The cloud offers unparalleled capabilities in advanced big data analytics and machine learning on large datasets. It is particularly valuable for global organisations needing to compare and optimise processes across multiple locations simultaneously.
“The future belongs to hybrid solutions. Our bottom-up strategy allows clients to build solid digital foundations and consciously choose which processes require cloud support”, summarises Siwek.
The future is scalable
The evolutionary approach to industrial AI implementation, beginning at the component level, presents a practical alternative to comprehensive cloud deployments. It enables the gradual development of digital competencies, reduces investment risk, and ensures quick returns. As both organisations and their analytical needs grow, the system can be expanded with additional layers, including selective cloud utilisation where it brings the most value.
About Mitsubishi Electric Factory Automation: it is a global leader in industrial automation and Industry 4.0 solutions. The company delivers innovative technologies that support sustainable industrial development in over 100 countries.
To learn more about Mitsubishi Electric’s solutions, please visit https://emea.mitsubishielectric.com/fa
About Mitsubishi Electric Corporation
With more than 100 years of experience in providing reliable, highquality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Mitsubishi Electric enriches society with technology in the spirit of its “Changes for the Better.” The company recorded a revenue of 5,257.9 billion yen (U.S.$ 34.8 billion*) in the fiscal year ended March 31, 2024.
About Mitsubishi Electric Factory Automation Business Group
Offering a vast range of automation and processing technologies, including controllers, drive products, power distribution and control products, electrical discharge machines, laser processing machines, computerized numerical controllers, and industrial robots, Mitsubishi Electric helps bring higher productivity – and quality – to the factory floor. In addition, its extensive service networks around the globe provide direct communication and comprehensive support to customers. The global slogan “Automating the World” shows the company’s approach to leverage automation for the betterment of society, through the application of advanced technology, sharing knowhow and supporting customers as a trusted partner.
For more about the story behind “Automating the World” please visit: www.MitsubishiElectric.com/fa/about-us/automating-the-world
About Factory Automation EMEA
Mitsubishi Electric Europe B.V., Factory Automation EMEA has its European headquarters in Ratingen near Dusseldorf, Germany. It is a part of Mitsubishi Electric Europe B.V. that has been represented in Germany since 1978, a wholly owned subsidiary of Mitsubishi Electric Corporation, Japan. The role of Factory Automation EMEA is to manage sales, service and support across its network of local branches and distributors throughout the EMEA region.
For more information, please visit: emea.mitsubishielectric.com/fa
About e-F@ctory
e-F@ctory is Mitsubishi Electric’s integrated concept to build reliable and flexible manufacturing systems that enable users to achieve many of their high speed, information driven manufacturing aspirations. Through its partner solution activity, the e-F@ctory Alliance, and its work with open network associations such as The CC-Link Partners Association (CLPA), users can build comprehensive solutions based on a wide ranging “best in class” principle.
In summary, e-F@ctory and the e-F@ctory Alliance enable customers to achieve integrated manufacturing but still retain the ability to choose the most optimal suppliers and solutions.
Further Information: https://emea.mitsubishielectric
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