TechnologyNovember 16, 2025

IEB Special Report: Industrial Ethernet in an AI World

Smart manufacturing is expected to be profoundly changed with the infusion of a wide array of AI technologies, and anticipated advances in cybersecurity, machine learning, use of Big Data and cloud computing architectures. The future of Industrial Ethernet networks will be fundamentally shaped by advances in artificial intelligence (AI) and virtual technologies.

As AI makes an impact, smart manufacturing is looking for solutions that combine automation, AI and secure architectures from edge-to-cloud to optimize operations and reduce exposure to cyber, compliance and operational risks. The immediate goals: cybersecurity, quality control, logistics and process optimization.

THE IMPACT OF AI ON INDUSTRIAL ETHERNET is expected to result in profound changes to the fundamental landscape of industrial networks according to industry experts that the IEB interviewed for this special report. Here are a few of the findings:

AI technology is poised to profoundly influence automation and control networking by requiring networks to become faster, more reliable, and more secure while also driving the adoption of smarter, more flexible architectures. Industrial Ethernet networks will be fundamentally shaped by advances in artificial intelligence (AI) and virtual technologies. AI will be used to create more adaptive, secure, and self-optimizing Industrial Ethernet networks.
Read on to learn details on how Industrial Ethernet will evolve and adapt in an AI world.

"AI technology is poised to profoundly influence automation and control networking by requiring networks to become faster, more reliable, and more secure while also driving the adoption of smarter, more flexible architectures. Because AI is limited by the quality of its input data, industrial networks must gear up to deliver pristine, comprehensive data to AI applications," -- Vivek Bhargava, Product Marketing Manager, Cisco Industrial IoT.

“AI technology is poised to profoundly influence automation and control networking by requiring networks to become faster, more reliable, and more secure while also driving the adoption of smarter, more flexible architectures. Because AI is limited by the quality of its input data, industrial networks must gear up to deliver pristine, comprehensive data to AI applications,” — Vivek Bhargava, Product Marketing Manager, Cisco Industrial IoT.

Speed, reliability and security

Industrial networks using AI must be scalable, flexible, and high bandwidth.

“AI technology is poised to profoundly influence automation and control networking by requiring networks to become faster, more reliable, and more secure while also driving the adoption of smarter, more flexible architectures,” Vivek Bhargava, Product Marketing Manager at Cisco told the Industrial Ethernet Book recently.

Bhargava said that, because AI is limited by the quality of its input data, industrial networks must gear up to deliver pristine, comprehensive data to AI applications. This data needs to be gathered from as many sources as possible to include all causalities, must be transmitted without hiccups so as not to lose any important packets, must be secured and protected, and delivered in near real-time to avoid delays.

“AI’s demands directly translate into specific network requirements. To gather the maximum data from all available sources, the network must be scalable, flexible, and high bandwidth. To maintain an uninterrupted data stream, it needs to be resilient, recovering from failures quickly without dropping packets. Furthermore, the network must offer robust security to protect sensitive data and guarantee low-latency, low-jitter data transmission for time-sensitive AI applications,” Bhargava said.

The industrial network connects assets to intelligence.

The industrial network connects assets to intelligence.

Industrial AI’s reliance on high-performance networking.

Industrial AI’s reliance on high-performance networking.

Technology megatrends

“Newer industrial switches offer key hardware features to meet modern network demands. They provide multiple high-speed 10 Gbps uplinks. high-density, high-wattage Power over Ethernet (PoE) to simplify deployment, and flexible connectivity options with both copper and fiber ports,” Bhargava said. “Designed for harsh environments, they feature compact form factors and IP67 ratings for use in confined or moisture-prone areas.”

Similarly, Industrial wireless is evolving to support industrial AI by delivering highly reliable, near-zero latency, seamless handoffs even at high speeds, and uninterrupted secure connectivity tailored for industrial applications.

He added that, from a software perspective, a number of features are critical for industrial AI. Software-defined networking enables scaling the network and making it flexible to adapt to changes quickly. Built-in visibility for connected devices and traffic, segmentation based on access policies and zero-trust principles, and secure remote access is critical for keeping out malware, protecting data, and easy access to configuring and monitoring devices.

Finally, comprehensive visibility across both owned and unowned networks is vital for proactively identifying and resolving potential issues.

From a connectivity perspective, it is important that the industrial networks seamlessly and securely connect to the enterprise network to reach to datacenters and cloud, enabling data-driven decision making, remote monitoring and control, and for regulatory compliance.

Key application areas

“Industrial Ethernet enables a broad and diverse set of AI and automation use cases. Some of the key ones that are gaining rapid popularity include machine vision systems, adaptive robotics, software-defined automation, and sustainability,” Bhargava said.

Machine vision systems, used for product quality assessment, barcode scanning, and robotic coordination, require industrial switches for high-wattage PoE and high-speed ports to connect cameras to continuously learning and inferencing AI applications in co-located servers.

AI-driven adaptive robotics for tasks such as tactile insertion and valve manipulation use a variety of sensors that need high-bandwidth, low-latency, and resilient connectivity to function effectively.

Software-defined automation technology used to virtualize industrial PCs (IPC) and programmable logic controllers (PLCs) also depend on low-latency low-jitter networks with a scalable fabric to tunnel Layer-2 control messages between machines and their controllers.

“By collecting vast data through their networks, manufacturers use AI to simulate scenarios that directly improve industrial efficiency, product quality, and reduce energy consumption, thereby increasing sustainability,” Bhargava added.

Looking into the future

Bhargava said that the challenges facing automation engineers in the future are largely driven by the demands of Industry 4.0 and the increasing complexity of OT networks due to the necessity of connecting an unprecedented number of sensors, actuators, and devices.

“Modern Industrial Ethernet switches are empowering automation engineers to upgrade operations and accelerate innovation. These switches with their high-speed ports, high-wattage PoE, low-latency switching, built-in security, and resiliency, enable a shift toward flexible software-based solutions and ensure engineers have the timely data needed for superior decision-making,” Bhargava said.

Modern switches also significantly benefit OT teams and automation engineers by enabling faster troubleshooting to minimize unplanned downtime, maintaining operational agility, and optimizing PoE power usage. Moreover, modern switches facilitate a necessary partnership between IT and OT. By standardizing the OT network to be compatible with IT infrastructure, organizations can leverage the same management tools, apply consistent security policies enterprise-wide, and utilize existing IT expertise within the operational domain.

“The future of Industrial Ethernet networks will be fundamentally shaped by advances in artificial intelligence (AI) and virtual technologies. Phoenix Contact views AI as a key driver in optimizing network management, fault diagnosis and predictive maintenance,” -- Julia Reker, Director Network Technology, Industry Management and Automation for PHOENIX CONTACT GmbH.

“The future of Industrial Ethernet networks will be fundamentally shaped by advances in artificial intelligence (AI) and virtual technologies. Phoenix Contact views AI as a key driver in optimizing network management, fault diagnosis and predictive maintenance,” — Julia Reker, Director Network Technology, Industry Management and Automation for PHOENIX CONTACT GmbH.

Paradigm shift for industrial networks

Industrial Ethernet networks will be fundamentally shaped by advances in artificial intelligence (AI) and virtual technologies.

“The future of Industrial Ethernet networks will be fundamentally shaped by advances in artificial intelligence (AI) and virtual technologies. Phoenix Contact views AI as a key driver in optimizing network management, fault diagnosis and predictive maintenance,” said Julia Reker, Director Network Technology, Industry Management and Automation for PHOENIX CONTACT GmbH. “AI-based systems analyze network data in real time, detect anomalies at an early stage, and enable automated responses-a crucial step towards self-healing networks.”

Reker said that virtual solutions such as digital twins, complement this development by creating virtual replicas of physical networks. These enable simulation-based planning, commissioning and optimization of communication structures-particularly in complex automation environments.

Combined with Industrial Ethernet and wireless technologies such as Wi-Fi 6 or 5G, highly available, adaptive networks are emerging that meet the growing demands for flexibility, security and data availability.

Phoenix Contact positions itself as a solution provider that integrates and further develops both traditional Ethernet infrastructures and AI-based, software-defined network concepts.

Key technology trends

According to Reker, industrial communication is on the brink of a paradigm shift. Phoenix Contact sees the combination of high-performance hardware, AI-driven software and flexible connectivity solutions as the key to the future of industrial Ethernet networks. Technologies such as Time-Sensitive Networking (TSN) enable the deterministic convergence of IT and OT worlds, while wireless real-time communication via 5G and Wi-Fi 6 creates new levels of freedom in automation.

“Virtual solutions such as digital twins and AI-based network diagnostics are transforming planning, commissioning and maintenance-shifting from reactive to predictive processes. REST APIs in communication modules open new avenues for automated machine integration. At the same time, cybersecurity is moving into focus, with IEC 62443-compliant solutions ensuring networks are resilient and future-proof,” said Reker.

Phoenix Contact is pursuing a holistic approach where Industrial Ethernet is becoming not only faster and more flexible, but also smarter serving as the backbone for tomorrow’s intelligent, connected production.

Industrial Ethernet solutions

“Industrial Ethernet is a key enabler for digital transformation in machine and process automation,” Reker said. “Phoenix Contact sees its role not only in technological advancement, but also as an active architect of the All Electric Society-a vision of the future where energy from renewable sources is used efficiently, intelligently and entirely electrically.”

In this context, she added that Industrial Ethernet enables seamless networking of machines, sensors and controllers, both wired and wireless via 5G and Wi-Fi 6. This is essential for mobile applications such as AGVs or modular production lines.

Virtual solutions such as digital twins and AI-based diagnostic systems support predictive maintenance and optimize energy flows in real time. In this way, Industrial Ethernet becomes the infrastructure for a connected, energy-efficient and CO2-neutral production environment-in line with the All Electric Society.

Automation engineering challenges

Reker said that automation engineers are facing increasing complexity: rising volumes of data, shorter innovation cycles and more stringent cybersecurity requirements. Phoenix Contact addresses these challenges with a future-oriented Industrial Ethernet portfolio that combines openness, scalability and intelligence. A central focus is the convergence of both IT and OT technologies.

“Technologies such as Time-Sensitive Networking (TSN) enable deterministic communication over a shared network-the foundation for virtualized control systems and software-defined architectures. This is complemented by wireless real-time communication via 5G and Wi-Fi 6, which supports mobile applications such as AGVs or modular machine concepts,” Reker said.

“Virtual solutions such as digital twins and AI-supported diagnostic systems help to manage complexity and automate maintenance processes. At the same time, Single Pair Ethernet (SPE) creates new opportunities for seamless communication right down to the field level,” she added.

“AI will be used to create more adaptive, secure, and self-optimizing Industrial Ethernet networks. It can assist with intelligent network configuration for optimal performance and redundancy. Beyond setup, AI can monitor performance and automatically reroute traffic, adjust priorities, or reconfigure topology based on production needs or failures,” -- Pooyan Dehghani, Product Marketing Manager at Moxa Europe GmbH.

“AI will be used to create more adaptive, secure, and self-optimizing Industrial Ethernet networks. It can assist with intelligent network configuration for optimal performance and redundancy. Beyond setup, AI can monitor performance and automatically reroute traffic, adjust priorities, or reconfigure topology based on production needs or failures,” — Pooyan Dehghani, Product Marketing Manager at Moxa Europe GmbH.

Adaptive, secure, self-optimizing networks

AI can assist with intelligent network configuration for optimal performance and redundancy.

According to Pooyan Dehghani, Product Marketing Manager at Moxa Europe GmbH, “AI will be used to create more adaptive, secure, and self-optimizing Industrial Ethernet networks. It can assist with intelligent network configuration for optimal performance and redundancy. Beyond setup, AI can monitor performance and automatically reroute traffic, adjust priorities, or reconfigure topology based on production needs or failures.”
Dehghani added that machine learning trained on network traffic can recognize unusual activity and detect attacks.

“AI and ML support predictive maintenance by identifying potential issues before they become visible. In time-sensitive environments, integrating AI with TSN enables dynamic bandwidth allocation, lower latency, and adaptive responses to real-time traffic,” Dehghani said. “Pairing AI with digital twins allows ‘what-if’ modeling to predict bottlenecks and test configurations before deployment.”

The future of Industrial Ethernet

Dehghani said that high-performance switches and routers are required to support TSN and deterministic Ethernet, plus robust edge devices that can help move processing closer to the factory floor.

A key development is AI-powered switches that embed AI or ML into network hardware. These switches enable autonomous optimization, predictive diagnostics, and enhanced cybersecurity by analyzing traffic in real time to improve reliability and reduce latency.

“AI-powered platforms are being integrated into network design, monitoring, and optimization. Advanced management solutions use AI and ML to detect abnormalities, optimize traffic, and simplify troubleshooting and device configuration,” Dehghani said. “The same analytics can strengthen cybersecurity by detecting unusual behaviors and threats.”

Key application areas

Dehghani added that both process and discrete manufacturing are under pressure to become more data-driven, adaptable, and efficient, while meeting rising cybersecurity and performance demands. In discrete industries such as electronics, packaging, and automotive, Industrial Ethernet connects machines, robots, and enterprise systems in real time.

This enables instant data sharing for quality control, production tracking, and order visibility, which supports more adaptable and resilient operations. In process industries such as energy, food and beverage, and pharmaceuticals, Ethernet-based networks help ensure continuous and safe operation while improving sustainability.

Real-time optimization across remote plants, predictive maintenance, and tighter process control are all supported. Combined with edge computing and AI, Industrial Ethernet provides a fast, predictable, and secure backbone for fully connected, intelligent manufacturing. Standardized Ethernet communication lets data flow from the shop floor to enterprise and supply chain systems for better visibility and decision-making.

“Automation engineers still face complex troubleshooting, manual device setup, and rising cybersecurity threats. Configuring each device from discovery to deployment is time-consuming and error-prone,” Dehghani said. “Finding the root cause of network issues can be difficult and costly, and keeping every device updated and secure is a constant task.”

He added that new Industrial Ethernet solutions with AI capabilities are starting to help. Intelligent tools can monitor performance, automate configuration, and assist with troubleshooting.

“AI and ML can sift large volumes of network data to detect early warning signs, forecast failures, and suggest maintenance before disruptions occur,” Dehghani said. “They can also enhance defenses by detecting anomalous activity. AI is not a magic fix, so human oversight remains essential. In industrial networks, where reliability is critical, engineers interpret, validate, and refine AI’s suggestions.”

Al Presher, Editor, Industrial Ethernet Book