Closed-loop, model-based product lifecycle engineering THEME 1 AI-driven generative and circular design ecosystem THEME 2Evolutions of themes Build a digital-first, AI-driven engineering environment that shortens design cycles, reduces physical prototyping and enables adaptive, high- performance products. Engineering throughput Asset productivity Digital foundations for smart engineering — Model-based systems engineering (MBSE) connects design, simulation and manufacturing. — AI-powered 3D digital twins validate designs virtually before concept freeze, reducing early physical prototypes. — Unified digital models, with AI checks ensure manufacturability review and design traceability.Intelligent, data-driven co-engineering — Product and process twins link design, production and service. — AI simulates performance, cost and reliability, reducing physical prototypes and through virtual validation. — Real-time feedback from operations refines design continuously.Self-evolving engineering ecosystems — Generative and self-learning AI integrate product, process and supply-chain twins within a cross-company PLM ecosystem, incorporating partner and end-customer data to optimize design iterations virtually and accelerate sustainable innovation at scale.NOW (0-2 years) NEAR (3-5 years) NEXT (5+ years) Objectives Evolutions of themes Enable AI-driven circular design ecosystems that optimize performance, cost and sustainability through continuous feedback. Design lead time Material and energy efficiency Generative design foundations — Generative design platforms optimize geometry, materials and cost. — Sustainability metrics embedded in early design. — Virtual validation ensures manufacturability and compliance.Circular design intelligence — AI design agents co-create and test design variations across performance, cost and carbon. — Digital product passports track materials, lifecycle and circularity data. — Immersive digital twins validate complete product impact.Regenerative design ecosystems — Agentic AI autonomously evolves regenerative product families. — Designs adapt to operational feedback and circular supply flows. — “Design-to-regenerate” becomes the standard, balancing performance, resilience and sustainability.NOW (0-2 years) NEAR (3-5 years) NEXT (5+ years) ObjectivesPRODUCT DEVELOPMENT PRODUCT DEVELOPMENT Intelligent Industrial Operations Outlook 2026 34