Industry 5.0

Definition

The term “Industry 5.0” was coined in 2021 in a white paper published by the European Commission on a competitive, sustainable and social industry of the future. The focus is no longer on technical feasibility, but on people who contribute their experience and problem-solving skills to the production process. Industry 5.0 is directly based on the fourth industrial revolution, often referred to as Industry 4.0. Key to the transition from Industry 4.0 to Industry 5.0 is a paradigm shift that harnesses advanced technologies to integrate the role of people – both employees and customers – into the production process. The goal is a hybrid production technology that, on the one hand, brings employees back into their central role, thereby strengthening and giving greater recognition to their workplace, and, on the other hand, offers customers a sustainable product. 

The convergence of digital technologies, big data and artificial intelligence (AI) will connect employees who control a production line in the manufacturing industry directly with customers who have a specific request for their product. AI systems, for example, evaluate the volumes of data obtained from customer relationships in real time and thus support decisions for ongoing product optimisation. Cobots (collaborative robots) are connected to employees via user interfaces and combine human creativity and problem-solving skills with the precision and endurance of machines in the production process. Augmented reality (AR) and virtual reality (VR) offer immersive training environments and support for complex assembly or maintenance work. Another aim is to improve the well-being of employees, for example through exoskeletons or bio-inspired wearables that support people in strenuous work processes. 

Current applications and opportunities

The applications of Industry 5.0 are currently still very limited. Early examples are AI apps in the area of customer service. AI systems can evaluate consumer data in real time and feed the results directly back into consistently customer-oriented products and services. What are known as matching engines are increasingly being used to adapt processes on production lines directly to customer needs. These are similar to the matching engines used in the financial industry, which use specific algorithms to compare buyer demand and seller offers in real time and establish the right connections. 

Further applications are being developed in the manufacturing industry. In semi-automated work processes, cobots combine the expertise of the specialists with the precision and endurance of machines. The robots do not replace employees but instead support them in monotonous or physically demanding tasks. The aim is for employees to be able to devote themselves to activities that are more creative or add more value. 

Industry 5.0 aims to use digital tools to keep familiarising employees with the ever-changing challenges in production. This kind of upskilling enhances the human workplace. The result is a boost to employee motivation and satisfaction, which not only alleviates the shortage of skilled workers, but also makes production processes more agile and resilient – which ultimately brings economic benefits.  

Enhancing the value of the human contribution has a positive effect on reliability, resource efficiency and productivity in all work processes of a company, giving it a competitive advantage in the markets of the future. Companies can also strengthen their commitment to sustainability, improve collaboration with stakeholders and make agile, data-driven decisions. 

Challenges

Implementing the Industry 5.0 concept requires secure networking and expanded programming capacities to cope with the increasing volumes of data in AI and automation applications. To achieve this, Switzerland needs to develop the infrastructure necessary for adequate connectivity and optimal data transmission. This is only possible if the 5G network is fully rolled out in Switzerland (see ultra-reliable low-latency communications). 

In addition, the rapid increase in the amount of data collected – including personal data of employees or customers – raises new questions regarding data security, data protection and data use, which are still largely unregulated. A new law regulating the use of AI data in Switzerland is not expected until 2028. Such regulations should adequately protect the right to one’s own data while also not inhibiting innovation, which is a major challenge for legislators given the complexity of the issue. 

The use of new technologies can lead to applications that focus on increasing control and monitoring of employees, which can have a negative impact on their satisfaction. In addition, the risk of discrimination against certain social groups is particularly high in AI systems that are used as decision-making aids. This is due to the fact that even the training data for the deep learning algorithms used for this purpose may contain a social bias or an insufficient factual basis, which usually leads to unfair decisions, for example in banking or insurance. 

Focus on industry

Swiss industry is in the midst of a challenging transformation process towards sustainable and resilient production. Industry 5.0 supports this process as it develops into an “economy of good jobs”. A “good job” is defined as a job that offers economic security, good social security benefits and a reasonable degree of autonomy. Employees in these roles tend to be happier, identify more with their job, use and initiate digital solutions, stay loyal to their company and stay healthy for longer. 

The ability to collect and analyse customer data in real time drives innovation in products and services, enabling companies to better meet the constantly changing demands of the market. For SMEs, in particular, it became apparent that technology-driven solutions of Industry 4.0 alone did not deliver the hoped-for efficiency gains, because industrial production was not sufficiently geared towards differentiated product ranges and frequent fluctuations in demand. 

The working environment of Industry 5.0 calls for a culture and awareness shift throughout the company that values collaboration between people and technologies and encourages employees to help shape this paradigm shift. This requires knowledge of the theory and application of advanced technologies such as AI, robotics and data analysis. However, there is a shortage of highly qualified specialist staff in Switzerland because the labour market has almost dried up as a result of the high demand from tech giants and multinationals. Targeted support should therefore be given to retraining and further training programmes. 

International perspective 

As an innovation hub in the international arena, Switzerland is well positioned to compete in the field of research and development. However, advances in the applications of Industry 5.0 are subject to significant economies of scale in terms of research investment and workforce. They also depend on the availability of sufficient data infrastructure. As a small country, Switzerland’s opportunities here are limited compared to other nations or even to tech giants such as Google, Amazon and Facebook. Efficient support mechanisms for technology transfer from research institutes to SMEs could partially offset this disadvantage. 

Future applications 

The concept of Industry 5.0 is set to expand into non-manufacturing sectors such as education and healthcare. In schools, it will be possible to adapt computer-assisted learning software to the individual needs of pupils. In the healthcare sector, new technologies can significantly improve the treatment skills of nurses and medical technicians. This would allow them to take on medical duties previously reserved for medical staff with many years of professional experience. This could help alleviate the shortage of skilled professionals in medicine, reduce healthcare costs and make the job profile of many non-medical professionals even more attractive. 

Overall, Industry 5.0 represents a promising future. The combination of human creativity and technological precision offers enormous potential for more efficient, personalised and sustainable production. Companies that recognise and seize these opportunities will be successful in the long term and make a valuable contribution to society.