The disintermediation paradox

Key Takeaways

• Artificial Intelligence (AI) is transforming the product development process, including design, manufacture, and support.
• PLM-enabling software solutions, such as PDM, CAD, CAM, ERP, and simulation & analysis, are being enhanced with AI capabilities.
• Disintermediation, or the "hollowing out" of traditional software features, is a risk due to AI's potential benefits and rapid adoption.
• Leading PLM solution providers, such as Cadence, Dassault Systèmes, PTC, Siemens, and Synopsys, are adopting AI platforms like Nvidia's Omniverse to develop new applications.
• The future role of humans in production and service may be redefined as AI enables the engineering process.

Introduction to AI in Product Development

Artificial Intelligence (AI) is no longer a futuristic concept in product development, but a reality that is reshaping the tools used to design, manufacture, and support next-generation products. AI is being integrated into PLM-enabling software solutions, such as Product Data Management (PDM), Computer-Aided Design (CAD), Computer-Aided Manufacturing (CAM), Enterprise Resource Planning (ERP), and simulation & analysis.

The Disintermediation Paradox

The main issue is how solution providers are moving beyond traditional software features to offer AI-enhanced benefits, new user capabilities, and new revenue models based on usage or results rather than on user "seats" or headcounts. Disintermediation, or the "hollowing out" of traditional software features, is a risk due to AI's potential benefits and rapid adoption. This is digital transformation on steroids, disrupting the use of traditionally licensed PDM, CAD, and many other PLM-related solutions to an extent never before imagined.

Comparison of AI Adoption in PLM Solutions

The Future of PLM and AI

The future role of humans in production and service may be redefined as AI enables the engineering process. However, it is unlikely that AI will fully replace traditional PLM-enabling solutions. Instead, AI will augment and enhance these solutions, leading to new applications and revenue models. Companies like Aras are transforming PLM and digital engineering with a digital thread optimized for AI integration.

Bottom Line

In conclusion, AI is transforming the product development process, including design, manufacture, and support. While disintermediation is a risk, it is unlikely that AI will fully replace traditional PLM-enabling solutions. Instead, AI will augment and enhance these solutions, leading to new applications and revenue models. As the industry continues to evolve, it is essential to stay informed about the latest developments in AI and PLM to remain competitive. With 75% of companies already investing in AI, and the global AI market expected to reach $190 billion by 2025, the future of product development is undoubtedly tied to the adoption of AI.