AI was certainly the main theme at this year's conversations at the World Economic Forum in Davos – rightly, in my opinion. Yet looking back several months later, I believe one of the most important questions received far less attention than it deserves: The biggest challenge for industry is not whether companies will adopt AI. It is whether they will remain sovereign while doing so.
Buildings are becoming distributed energy resources
Industrial sovereignty is not about isolation or protectionism. It is about preserving the freedom to choose. The freedom to integrate new technologies without becoming dependent on a single vendor. The freedom to evolve instead of replacing entire infrastructures. And ultimately, the freedom to innovate at your own pace. In a world where technological progress is accelerating while geopolitical and economic uncertainty are becoming the norm, this freedom is turning into one of industry's most valuable strategic assets.
It’s not a single technology announcement or keynote what strikes me most from Davos. It’s the realization that transformation is no longer about predicting the future. It is about building organizations that can adapt to whatever comes next. As a lifelong Star Wars fan, I couldn't help but think of one of my favorite quotes from Master Yoda: “Always in motion is the future." This sentence perfectly captures today's industrial reality.
The real lesson from Davos: Adaptability is becoming the main competitive advantage
Manufacturers, utilities, and operators of critical infrastructure are facing unprecedented uncertainty. Artificial intelligence is evolving at breathtaking speed. Energy systems are becoming increasingly decentralized. Supply chains remain fragile. Regulatory requirements continue to grow. None of us knows exactly what industry will look like five years from now. What we do know is that adaptability has become a strategic capability. The future will not belong to companies that simply invest in the latest technologies. It will belong to those that build open, flexible foundations capable of integrating whatever comes next.
This is where software-defined automation becomes strategically relevant. It’s not simply another technological trend. It represents a fundamentally different way of thinking about industrial systems – one in which software enables how quickly organizations can respond to changing business requirements.
From vision to scale: What "Summer Davos" added
Another milestone reinforced this impression. At the World Economic Forum's Annual Meeting of the New Champions in Dalian the discussion shifted noticeably and concentrated on a far more practical question: How do we innovate at scale?
It’s one thing to discuss the enormous potential of artificial intelligence, digitalization, or industrial transformation. It’s something entirely different to deploy these technologies across factories, power grids, and critical infrastructure in ways that create measurable business value. Dalian confirmed that the next phase of industrial transformation will not be defined by individual breakthrough technologies alone. Success will depend on our ability to implement them reliably, securely, and at scale.
This is where industrial sovereignty becomes more than a strategic aspiration. It becomes a practical necessity. Organizations need digital foundations that allow them to adopt new technologies without locking themselves into proprietary ecosystems or sacrificing long-term flexibility. Technology should expand options, not limit them.
The importance of sovereignty is increasingly recognized beyond industry. At the European Political Community Summit in Yerevan, Canadian Prime Minister Mark Carney highlighted resilience and strategic independence as key priorities for the future. Industry faces a similar challenge: embracing innovation while maintaining the freedom to choose and adapt.
Why digital foundations matter more than ever
Many conversations in Davos focused on the tremendous opportunities AI offers industry. I share this optimism. AI has the potential to transform how we operate factories, optimize energy systems, and support decision-making across industrial environments. But AI alone will not transform industry. Its success depends on something far less visible: the quality of the digital foundations on which it is built. AI requires reliable data, interoperable systems, and software architecture that allow new capabilities to be integrated quickly and securely.
The same applies to the energy transition. Around the world, electricity networks are becoming more decentralized and increasingly dynamic. Renewable generation, energy storage, and flexible consumers are changing how grids operate every day. Managing this complexity requires more than intelligent algorithms. It requires software platforms that connect assets, orchestrate processes, and provide operators with the transparency needed to make millions of informed decisions in real time.
Industrial sovereignty starts with open digital foundations
This is where companies need to broaden their perspective. Software-defined automation is often discussed as a technological evolution, but it is something much more fundamental. It enables industrial sovereignty.
Open software platforms give organizations the freedom to integrate new technologies without replacing existing investments. They reduce dependencies on proprietary ecosystems, support interoperability across operational technology (OT) and information technology (IT), and provide the flexibility to continuously evolve as business requirements change.
Open ecosystems create resilient industries
Another encouraging observation from both World Economic Forum meetings was that no organization can master industrial transformation alone. Open standards, trusted partnerships, and interoperable technologies are increasingly becoming strategic advantages rather than technical preferences.
Industrial ecosystems are more connected than ever before. Manufacturers collaborate with energy providers. AI applications interact with automation platforms. Success depends less on individual technologies than on how effectively they work together. Industrial sovereignty does not mean doing everything yourself. It means having the freedom to collaborate without losing control over your own data, infrastructure, and strategic decisions.
Looking ahead to Davos 2027
As we look ahead to the World Economic Forum 2027, I expect the conversation to evolve once again. Artificial intelligence will undoubtedly remain a central topic. But I hope we will spend less time discussing its potential and more time discussing the conditions required for successful implementation and real positive impact of AI. The question is no longer whether industry will embrace AI. The question is whether companies will do so while preserving the openness, flexibility, and industrial sovereignty that will allow them to thrive for decades to come.
A blog article by Stefan Reuther.
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