Accenture and Avanade, in collaboration with Microsoft, have introduced a new “agentic factory” intelligence system designed to help manufacturers reduce downtime and improve shop floor performance through AI-driven operations.
The solution is aimed squarely at manufacturing environments where unplanned downtime, inefficiencies and fragmented data remain persistent challenges. Early adopters, including Kruger Inc. and Nissha Metallizing Solutions, are already testing the system ahead of its planned general availability later in 2026.
The agentic factory moves beyond traditional dashboards and analytics tools by deploying AI agents that actively support frontline workers. These agents assist with initial status checks, diagnostics and guided troubleshooting when production lines or machines are not producing at the intended rate.
By analysing operational context, historical machine behaviour and production data, the system identifies likely root causes and recommends corrective actions. It can also prepare maintenance tickets or initiate spare parts orders when escalation is required.
“Manufacturers are looking to reinvent their shop floor operations with AI for improved safety and productivity,” said Tracey Countryman, Global Supply Chain and Engineering lead at Accenture. “This includes moving beyond visibility toward systems that support frontline workers in critical moments. Our agentic factory helps production supervisors, machine operators, electricians, mechanics and quality controllers resolve issues faster and with greater confidence, remaining in control of final decisions.”
The system aggregates both structured and unstructured data sources, including manufacturing execution systems, sensor telemetry, maintenance records and operator manuals. Built on Microsoft technologies such as Azure, Fabric, Foundry and Copilot, it delivers “contextual, role-specific guidance directly at the point of work through conversational interfaces.”
Michael Schleuss, Global Supply Chain and Engineering lead for Avanade, emphasised the practical application of the technology: “What makes agentic AI real for manufacturers is how it shows up for the people running the factory every day. Our agentic factory combines Microsoft technology expertise with hands-on industry and manufacturing know-how to help clients and their teams move quickly from concept to measurable impact on the shop floor.”
Initial deployments are focused on validating performance and quantifying business impact. At Kruger, the focus is on reducing downtime and improving maintenance efficiency.
“Unplanned downtime impacts safety, productivity and performance across our operations,” said Eric Ashby, Chief Operating Officer at Kruger. “The financial and operational value lever is significant. A 10–15% reduction in mean-time-to-repair quickly translates into multimillion dollar savings when scaled across production lines and sites. With this agentic factory, we can help our teams respond faster to issues, capture operational knowledge, and continuously improve how our factories run.”
At Nissha Metallizing Solutions, the emphasis is on improving quality and reducing waste. Edoardo Palmo, Global Operations Manager, said: “At NMS, we see prescriptive analytics and AI as a strategic imperative, helping unlock significant value across our organization. With Accenture’s and Avanade’s agentic factory, we can improve root cause exploration in order to significantly reduce scrap and unplanned downtime for a competitive edge in an increasingly dynamic market.”
The collaboration reflects a broader industry shift toward integrating AI, automation and human expertise on the shop floor.
“Agentic AI is the next step for manufacturers like Kruger and Nissha Metallizing Solutions to turn data into outcomes,” said Dayan Rodriguez, Corporate Vice President, Manufacturing and Mobility Industry at Microsoft. “By bringing together Microsoft’s AI, Accenture and Avanade’s manufacturing expertise, and client validation, we’re building factory agents and analytics that help teams work smarter and make better decisions.”
The agentic factory is designed to enable closer collaboration between people, machines and data, helping manufacturers “improve safety, increase productivity, strengthen decision-making, and enable more consistent performance across sites.”
* Accenture, Avanade and Microsoft are presenting the agentic factory at Hannover Messe at the Accenture booth (Hall 16, Stand A15) and the Microsoft booth (Hall 17, Stand G06).
