Defined as a vision of industrial evolution that emphasises a human-centric, sustainable, and resilient approach to manufacturing, building upon the technological advances of Industry 4.0, Industry 5.0 focuses on integrating human expertise and creativity with the capabilities of smart systems and automation. It aims for a more balanced and equitable relationship between technology and society.
Its advent will see robots and smart machines working alongside humans to deliver improved efficiency and productivity, while also enhancing sustainability and worker wellbeing. How will this happy state of affairs be achieved, and what role will AI play?
Industry 5.0 represents a pivotal shift from pure automation to human-machine collaboration, where technology complements human skills rather than replaces them, says Cuty Gupta, CEO and founder of Cozmo Tec.
“This evolution will be achieved not through radical disruption, but through intentional integration, embedding AI and smart technologies into everyday workflows in a way that enhances productivity, decision-making, and creativity.”
RM Block
In European industry today, the most common robots remain traditional industrial robots, which are primarily used in structured settings like manufacturing and assembly lines, says Sara Riso, senior research manager of Working Life at Eurofound.
“These robots are highly effective at performing repetitive, physical tasks with precision and efficiency, but they cannot generally interact with humans or adapt to dynamic environments – they operate in standardised ways without advanced capabilities.
“Integrating AI into industrial and service robots – enabling them to autonomously move, sense, learn, and adapt like humans – remains a significant technical challenge.”
One example of robots in real life is BMW’s AI-enabled “smart factory,” powered by Nvidia. Real-time data optimises performance, computer vision spots anomalies (for example, a bent carton top before it leaks), and predictive maintenance cuts unplanned downtime, says Mark Kelly, founder of AI Ireland.
“Digital-twin simulations run side-by-side with physical lines so engineers can monitor and fine-tune production without stopping the machines.”
The adoption of robots in Europe is still relatively limited, says Riso. “According to Eurostat, only 6.3 per cent of enterprises across the EU were using either industrial or service robots in 2022, with Ireland falling below the EU average at just 4 per cent. Usage is closely tied to company size: over one in five large enterprises use industrial robots, while one in 10 use service robots.
“Smaller companies lag significantly behind, both in robot and AI adoption, only 6 per cent of small enterprises use at least one AI system, compared to 30 per cent of large enterprises.”
There is some adoption hesitation among firms, especially when it comes to more complex applications like AI-powered robotics in manufacturing, which are designed for close collaboration between humans and machines, says Riso. “While AI is increasingly being adopted in areas such as sales, marketing, and logistics, applying it in production environments is a different story. It demands highly precise AI, big investment, and often a complete rethink of workflows and processes.”
She adds that there is “a broader mindset shift” that hasn’t taken hold yet. “The real power of AI lies in enabling humans and machines to work together. But not many companies have figured out how to make that collaboration work in practice.”
Eurofound’s research on human – robot interaction has shown just how much companies struggle to implement robotic technologies that are genuinely designed with human – robot collaboration principles in mind.
Gupta believes “we’re on the verge of a significant uptick in adoption, particularly among SMEs. The technology is more accessible than ever, and even no-code tools allow businesses to build smart workflows without hiring full dev [development] teams.
“Ireland’s upcoming digital transformation funding initiatives, combined with rising labour and operational costs, will accelerate adoption. Businesses are starting to realise that scaling sustainably requires smarter systems, not just more staff.”
