The Evolution of Industrial AI: How IFS Loops Transforms ERP from a System of Record to a System of Action
For years, the promise of Artificial Intelligence in manufacturing has been hindered by a fundamental disconnect. While modern ERPs can predict a machine failure or a supply chain delay with startling accuracy, the “last mile” of that insight – getting a human or a system to actually do something about it – in many cases remains manual, fragmented, and slow. This is the Industrial AI Paradox: we are data-rich but execution-poor. With the introduction of IFS.ai and the 2025 acquisition of TheLoops — now integrated as IFS Loops — ERP is evolving into something fundamentally different: a system of action, capable of autonomous execution, real-time decision-making, and continuous operational orchestration. This shift is not incremental. It is architectural. IFS.ai: Intelligence As An Infrastructure IFS has fundamentally rejected the “AI-as-an-add-on” philosophy. Through IFS.ai, they have built an infrastructure where artificial intelligence is a core component of the ERP architecture. This isn’t just about generating text; it’s about industrial-grade predictive and prescriptive logic. For a Logistics Manager, this means the system doesn’t just record that a shipment is late. IFS.ai analyzes the impact of that delay on downstream production schedules, evaluates the shelf-life of the raw materials involved, and recommends a specific rerouting strategy to minimize financial loss. It is pervasive, touching everything from Enterprise Asset Management (EAM) to Service Management. For more insights on IFS.ai check out: IFS Cloud – IFS.ai The Strategic Shift: Why IFS Acquired TheLoops To understand where industrial software is heading, we must look at the 2025 acquisition of TheLoops. Traditional ERP systems act as “systems of record,” storing and reporting data after events occur. With the emergence of agentic AI platforms like IFS Loops, ERP evolves into a system of action — autonomously executing multi-system processes and making context-driven decisions while humans focus on high-value exceptions. IFS Loops: The Rise of the Digital Worker IFS Loops introduces the concept of the Digital Workers, specialized autonomous AI agents capable of context-aware decision making and execution across enterprise systems. Unlike rigid RPA scripts, they dynamically plan and perform complex tasks such as order management or maintenance scheduling with significant operational impact. To understand the breadth of this technology, we can categorize these agents by the operational “Villains” they defeat: The Supplier Order Manager (The Procurement Sentinel): In a traditional setup, if a supplier changes a delivery date via email or a portal, a human must read the notification, check the ERP, assess the impact on production, and manually update the purchase order. The Loop: The Digital Worker monitors these external signals autonomously. It identifies a 48-hour delay, cross-references it with current safety stock levels in IFS Cloud, and—if the delay doesn’t risk a line-stop—it updates the PO and notifies the planner. If it does risk a line-stop, it automatically flags the exception for immediate human intervention. The Demand & Inventory Replenisher (The Capital Optimizer): Manual replenishment often relies on “gut feeling” or static reorder points that don’t account for seasonality or sudden market shifts. The Loop: This agent continuously analyzes consumption patterns against external market signals. If it detects a trend—for example, a sudden spike in demand for a specific […]
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