IFS CEO Mark Moffat’s message was clear when he took the stage for his keynote at IFS Connect 2025. With artificial intelligence (AI) fundamentally reshaping business landscapes, Moffat declared an urgent need for adaptation, positioning IFS squarely at the forefront of industrial AI. The subsequent flurry of announcements – centered around a new AI innovation program, a feature-rich cloud update, and a direct appeal to SAP users – signals IFS’s aggressive push to dominate the enterprise software market for asset and service-intensive industries by 2029.
Process Level Intelligence with 25R1
The core of IFS’s strategy is about embedding process-level intelligence directly into the operational fabric of the six key industries it services: aerospace and defense, energy and utilities, manufacturing, construction and engineering, telecoms, and services. This focus was evident in the unveiling of IFS Cloud 25R1, which brings over 200 AI-based capabilities online. Key enhancements in 25R1 include:
- IFS.ai forecasting and inventory replenishment to optimize stock management with AI-driven demand planning.
- IFS.ai XD integration and visualization that merges 2D/3D data with maintenance information for proactive decision-making.
- AI-powered data extraction for automating insights from contractor reports to streamline follow-up actions.
- Multiple IFS.ai copilots to enhance efficiency in sales, shipping, and customer order management.
Christian Pedersen, IFS’s Chief Product Officer, emphasized the practical nature of these advancements: “IFS’s ability to deliver AI in the industrial setting is rooted in solving real, complex industrial challenges,” he said during the event. “IFS.ai isn’t speculative; it’s already helping the world’s largest industrial companies navigate and lead.”
Accelerating Innovation with IFS Nexus Black
To fast-track these high-impact AI solutions, IFS launched IFS Nexus Black, a strategic co-creation program. Nexus Black pairs customers with dedicated IFS AI engineers and domain experts to rapidly prototype and deploy bespoke AI applications.
“Too many businesses are stuck choosing between inflexible enterprise tools or niche AI vendors with no roadmap to scale. Nexus Black changes that,” stated Moffat.
It offers an agile, sprint-based model to deliver tangible outcomes within weeks. The solution focuses on areas like predictive maintenance and scheduling optimization, which is IFS’s answer to bridging the gap between AI ideas and scalable, industrial-grade implementation.
Making the Move: The SAP Migration Accelerator
Recognizing that many industrial giants run on SAP, IFS also introduced a Migration Accelerator Service to provide a low-risk, structured path for SAP customers to transition all or part of their estate to IFS Cloud. This is a direct invitation to leverage IFS.ai without the traditional migration headaches, facilitating a move towards a more modern, composable tech stack.
“CEOs, CFOs, and CIOs are rethinking their approach to technology and operations,” said Max Roberts, Chief Operations Officer at IFS. “By leveraging IFS.ai through IFS Cloud, businesses can automate workflows and seamlessly integrate AI into their operations, dramatically improving efficiency and reducing costs.”
What This Means for ERP Insiders
The announcements from IFS Connect 2025 carry significant weight for ERP professionals, particularly those in industrial sectors:
Start with pain points and iterate quickly. Don’t treat AI as a monolithic project. As ERP Today’s coverage of IFS Connect UKI 2025 highlights, IFS encourages starting small with programs like the IFS.ai Starter Pack or Nexus Black. Identify high-friction workflows in areas like scheduling or inventory and adopt an iterative approach: automate, learn, optimize, and scale. Remember, AI success is cultural and technical.
Vertical depth is IFS’s edge. IFS presents a formidable challenge to its competitors in its target industries. Unlike broader ERP suites, IFS Cloud’s strength lies in its vertical depth, which is optimized for asset-heavy, service-centric operations. Its tightly integrated architecture and purpose-built AI deliver faster time-to-value for those who commit to its cloud stack. IFS is also embedding sustainability at the core of its industrial ERP through partnerships with PwC UK.
IFS is a serious contender to legacy ERP giants. With aggressive AI investment, a clear focus, and proven customer outcomes like Konica Minolta’s 4x ROI after implementing IFS solutions, IFS has set its sights on scaling its offerings by 2029. Its ambition for this timeframe is plausible if it can execute effectively – migrating legacy users, scaling globally, and turning AI buzz into measurable value.
