By Alex Smith |
Accenture and Avanade are collaborating with Microsoft to develop an ‘agentic factory’ intelligence system designed to support manufacturing operations. The product has been presented at Hannover Messe 2026 and is being tested by early adopters ahead of planned general availability later in 2026.
The system is intended to assist factory operators with status checks, diagnostics and troubleshooting when production lines or machines are not performing as expected. It analyses operational context, historical machine behaviour and production data to identify potential causes and recommend actions. Where additional support is required, it can also prepare maintenance tickets or spare parts orders.
“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 is built on Accenture and Avanade’s Factory Agents and Analytics offering and uses Microsoft technologies including Microsoft Azure, Microsoft Fabric, Microsoft Foundry and Microsoft Copilot. It is delivered through a subscription model intended to allow phased deployment.
The platform integrates structured data from manufacturing execution systems, condition monitoring and control systems, as well as machine and sensor telemetry, with unstructured data such as maintenance records, manuals and failure analysis documentation. Using Microsoft Fabric as a data layer and Foundry for analysis, the system provides role-specific guidance through conversational interfaces at the point of use.
“What makes agentic AI real for manufacturers is how it shows up for the people running the factory every day,” said Michael Schleuss, global supply chain and engineering lead at Avanade. “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.”
Early adopters include Kruger, a North American producer of tissue and recycled paper-based products and renewable energy, and Nissha Metallizing Solutions, a manufacturer of metallised paper for packaging and labelling applications. Both companies are evaluating system performance and operational impact to inform further development.
“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 per cent 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 NMS, we see prescriptive analytics and AI as a strategic imperative, helping unlock significant value across our organisation,” said Edoardo Palmo, global operations manager at Nissha Metallizing Solutions. “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 development forms part of ongoing efforts by Accenture, Avanade and Microsoft to integrate artificial intelligence into manufacturing operations, with a focus on safety, productivity, decision-making and operational consistency.
“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 of 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.”