From hype to reality: Why AI system integration is critical

The hype surrounding Artificial Intelligence in engineering is massive. Almost every software vendor now offers smart AI features. When applied correctly, AI-powered solutions deliver maximum leverage right where engineers and designers waste valuable time every day, whether on tedious routine work or background tasks. Examples include automated test case generation, understanding complex documents, or quickly assessing minor design changes.

But behind the scenes, the industry’s reality paints a sobering picture. According to a CIMdata study, while about 80% of software vendors already offer AI features in their portfolios, the actual adoption rate among industrial customers is only 8% to 33%. Nearly nine out of ten industrial companies use AI in less than a quarter of their projects, leaving most initiatives stuck in pilot mode. So why is adoption stalling?

The challenge: the invisible data wall

The biggest hurdle isn’t the algorithm itself, but what comes next: AI integration. For industrial customers, seamless connection to existing systems is a key selection criterion. Yet software and service providers systematically underestimate this barrier. In practice, service providers encounter unexpected issues with legacy systems 2.4 times more often than customers anticipate. When new AI tools are bolted onto existing systems in isolation, they fail when faced with the reality of complex engineering processes. As our Chief Product Officer Frank Patz-Brockmann puts it: “The real pain point isn’t buying the software but getting it activated.”

Integration over API patchwork

CONTACT Software is tackling this problem head-on with Fourier AI. We need to view AI system integration as a fundamental architectural decision, not an afterthought or a quick DIY project. Instead of connecting an isolated external AI via standard interfaces, Fourier AI is deeply embedded as a fully integrated intelligence layer within our proven CONTACT Elements platform.

In customer discussions, we sometimes encounter an urge to throw established data structures overboard and replace them with a “data lake” or even a “data swamp” in the hope that the AI will somehow piece the information together on its own. However, this is entirely the wrong approach, because AI thrives on structured data.

That’s why with Fourier AI, we rely on a clear, bottom-up layered architecture:

  1. A Single Source of Truth (PLM) as the foundation: At the very base is still the PLM system with its highly structured data. This foundation is essential and serves as the reliable starting point for any intelligence.
  2. Context building: Simply storing data somewhere isn’t enough. A precise context must be constructed for the AI. For example, if a user submits a prompt like “Give me all data on this Engineering Change,” this context layer needs to know exactly which data belongs to it, who created it, and how everything is connected.
  3. The model layer: Sitting above that is the model layer. In addition to leading external models, we offer our own specialized models, such as for 3D similarity search. The system automatically selects the right model for specific platform tasks while giving companies the freedom to choose which models they want to access for their custom use cases.
  4. AI orchestration & governance: To evaluate and continuously improve answers, generated execution traces are captured and logged. The system filters data so the model only returns information the specific user is authorized to see via integrated permission controls.
  5. User interaction (the PLM chatbot): At the top layer is the user, who interacts directly by typing a query into the PLM chatbot, for example.

Conclusion: Foundation first, value follows

This deep architectural approach initially requires more diligence when structuring data and preparing systems. But that’s precisely where the key advantage lies: because the foundation is cleanly built from day one, the AI layer automatically adapts whenever a customer expands their data model in CONTACT Elements – without writing a single line of additional code. This is how we bridge the gap between mere tech gimmicks and genuine, productive value in day-to-day engineering.

Learn more about this topic in our Live Talk:

Pontus-X: The backbone of the Gaia-X ecosystem

Pontus-X is a core ecosystem within Gaia-X. It was one of the first publicly available Gaia-X ecosystems with a large number of participating projects and companies from multiple countries. This has made it a crucial catalyst for the development and deployment of Gaia-X technologies. By connecting CONTACT Elements to Pontus-X, we enable federated data exchange that boosts operational efficiency and improves data governance. In this article, learn how companies can operate confidently in a world of distributed data.

Technically, Pontus-X is built on Distributed Ledger Technology (DLT) for the decentralized and trustworthy management of data and services. A key element of Pontus-X is the Ocean Protocol by Ocean Protocol Foundation, which puts data control in the hands of data owners and service providers.

One of Pontus-X’s most relevant features for ensuring data sovereignty is Compute-to-Data.

Compute-to-Data – Data flow while maintaining data sovereignty (© deltaDAO)

With the help of Compute-to-Data, data never leaves its owner’s infrastructure, thus remaining more effectively under their control. Instead, it allows algorithms to be brought to the data, extracting valuable insights without revealing the data itself. One exemplary use case is Federated Learning, which involves training AI models with distributed data. In this process, users receive only the trained model but no direct access to the sensitive training data.

Through this combination of various technologies, Pontus-X provides a solid foundation for secure, transparent, and sovereign data exchange within the Gaia-X ecosystem.

CONTACT Elements: Your data in Gaia-X

CONTACT Elements enables companies to seamlessly integrate their data into the Gaia-X ecosystem. A practical example is our partner GMN, a leading manufacturer of high-tech motor spindles. GMN uses sensor data from its spindles to offer data-driven services.

We’ve integrated CONTACT Elements to link quality data from a spindle on the shopfloor with the results of an end-of-line test bench. This data allows GMN to offer its customers comprehensive data-driven services, such as verifying correct assembly or performing digital commissioning.

Example of the vibration velocity of a grinding spindle as part of quality inspection measurements at GMN

We realized this data offering through the Pontus-X ecosystem. CONTACT Elements collects the relevant data from the spindles, aggregates it, and publishes it in the Pontus-X ecosystem. This process is largely automated and uses the AAS integration module as well as the data space integration of the Elements platform.
Through this integration, we empower companies like GMN to securely, reliably, and sovereignly share their data in order to develop new business models and innovative services.

Federated data exchange: Added value for your business

Federated data exchange offers significant advantages to companies. Unlike centralized platforms, data remains at its original storage location. Each organization retains control over its own data and determines who can access which data.

Increased operational efficiency:

  • Faster data availability: Access to real-time data without long transfer times or complex integration projects accelerates decision-making processes and responses to market changes.
  • Improved collaboration: Secure and controlled data exchange supports cooperation with partners, suppliers, and customers. This leads to more efficient processes, shorter lead times, and higher quality.
  • Process automation: Automated data exchange between different systems and organizations reduces manual tasks and errors.

Improved data governance:

  • Transparent data origin: Understanding data provenance is particularly important for companies operating in regulated industries or those that need to meet strict compliance requirements.
  • Controlled data access: Companies retain control over who can access their data and how it is utilized. This enables them to protect sensitive data and adhere to data protection regulations.
  • Meeting compliance requirements: Federated data exchange supports companies in meeting compliance requirements by ensuring adherence to defined rules and guidelines for data exchange.

Specific use cases:

  • Supply chain management: Data exchange between suppliers, manufacturers, and logistics providers enables transparent and efficient supply chain management.
  • Engineering: The exchange of design data between various engineering departments or external partners accelerates the development process and improves product quality.
  • Production: Exchanging production data between different production sites enables more efficient resource utilization and optimizes production planning.

Our approach: “Bring your own connector”

Building and operating proprietary infrastructure can be complex. That’s why we support companies with our “bring your own connector” approach, which adheres to the Gaia-X principle of portability. This avoids vendor lock-in by giving companies the freedom to choose which connector they integrate into their existing or new infrastructure and where they operate it.

What CONTACT Elements offers:

  • Integration into existing infrastructures: CONTACT Elements focuses on seamless integration into existing or new infrastructures required for participation in Gaia-X.
  • Interfaces to various data spaces: Whether it’s Pontus-X or Eclipse Dataspace Components (EDC), CONTACT Elements provides interfaces to both technologies. This allows companies the flexibility to choose which data space best suits their needs.

With our “bring your own connector” approach, companies leverage the benefits of the Gaia-X ecosystem without compromising on flexibility, portability, or data sovereignty.

CONTACT Elements paves the way for sovereign data exchange in the Gaia-X ecosystem

The vision of Gaia-X to create an open, secure, and trustworthy data ecosystem is drawing closer. By connecting CONTACT Elements to Pontus-X and through the “bring your own connector” approach, we give companies the flexibility and portability they need.

Federated data exchange offers companies a multitude of benefits: from increasing operational efficiency and improving collaboration to unlocking new business models.

We are convinced that Gaia-X has the potential to fundamentally transform the European economy and drive innovation across all industries. With CONTACT Elements, companies are well equipped to seize these opportunities and actively shape the future of data exchange.

Trustworthy data exchange with Gaia-X

In today’s data-driven world, secure and efficient data exchange is a crucial competitive advantage. Companies must be able to integrate and share data from various sources without losing control over their own data. This is where Gaia-X comes in: a flagship project of the European Union that creates a secure, trustworthy, and sovereign data infrastructure for Europe.

In our Research Area Data & Service Ecosystems at CONTACT, we’re working to make the vision of Gaia-X a reality. A key part of this is seamlessly connecting data management systems to Gaia-X-based data spaces.

What is Gaia-X, and why is it important?

In an increasingly globalized and data-driven world, it’s crucial for companies to maintain control over their data while still benefiting from data exchange. Gaia-X provides the framework for this: its core concept for a federated data infrastructure allows platform providers, cloud services, and data holders to communicate and exchange data securely and in compliance with legal requirements.

Gaia-X doesn’t aim to replace existing data infrastructures; instead, it connects them to create an open, interoperable ecosystem. To understand the significance of this shift, it helps to look at the differences between data platforms and data ecosystems:

Data platforms typically operate on a centralized model. Data is copied and uploaded to the platform, allowing other parties to download and use it. The problem with this is that copies of the data exist everywhere, and all participants must trust the platform operator to manage the data securely and correctly.

In contrast to a centralized data platform, in a data and service ecosystem, the operator’s role shifts to that of a federator. This federator offers “federation services” that enable participants to find each other, establish trust, and exchange data directly without a central entity managing or controlling the data.

The core pillars of Gaia-X form the foundation for a trustworthy and future-proof data ecosystem:

  • Trust & transparency: Gaia-X establishes clear rules for data governance, security, and data protection. The system is designed from the ground up to be compliant with the GDPR (General Data Protection Regulation), ensuring user privacy and data security.
  • Interoperability: By adhering to open standards and interfaces, data and services move freely between compliant providers.
  • Portability: Businesses can easily move their data and applications between different Gaia-X-compliant providers without vendor lock-in. This fosters competition and gives companies the flexibility to choose the solutions best suited for their operational needs.
  • Sovereignty: Data sovereignty remains with the owner at all times. Businesses retain control over the access and use of their data, in strict compliance with European laws and values.

Gaia-X is thus an important step towards Europe’s digital sovereignty, offering companies the opportunity to drive innovation, develop new business models, and simultaneously retain control over their valuable data.

Requirements for participating in the Gaia-X ecosystem

Participating in the Gaia-X ecosystem opens up numerous opportunities for companies but also requires fulfilling certain demands.

  • Compliance with the Gaia-X Trust Framework: This includes adherence to rules and guidelines for data governance, data security, data protection, and interoperability.
  • Operating your own infrastructure: Typically, operating your own infrastructure is necessary to ensure full data sovereignty. This might include running an object storage (like S3), a Self-Sovereign Identity (SSI) solution, or other necessary services.
  • Implementation of security measures: Companies must implement appropriate security measures to protect their data and systems from unauthorized access, loss, or damage.
  • Adherence to standards: Gaia-X relies on open standards and interfaces for interoperability between different systems and platforms.

Conclusion

Gaia-X is Europe’s strategic response to the challenges of the digital era. By creating a trustworthy, interoperable, and sovereign data ecosystem, Gaia-X enables companies and organizations not only to securely store their data but also to share it in a controlled manner and use it intelligently.

This not only fosters innovation and new business models across industries but also ensures a fair competitive landscape where even smaller players can benefit from the potential of data-driven value creation. Users and companies regain control over their data, forming the basis for transparency and trust in the digital space.


Discover in our next blog article how we are laying the foundation for federated data exchange by connecting CONTACT Elements to Pontus-X.