Foundation-Model-Based Agents in Industrial Automation: Purposes, Capabilities, and Open Challenges
Authors: Vincent Henkel, Felix Gehlhoff, David Kube, Asaad Almutareb, Luis Cruz, Bernd Hellingrath, Philip Koch, Christoph Legat, +8 more
Abstract
Foundation models, particularly large language models, are increasingly integrated into agent architectures for industrial tasks such as decision support, process monitoring, and engineering automation. Yet evidence on their purposes, capabilities, and limitations remains fragmented across domains. This work examines how mature foundation-model-based agent systems are in industrial contexts, how their functional profile differs from conventional agent systems, and which limitations persist. A systematic literature survey following the PRISMA 2020 guideline is presented, screening 2,341 publications and synthesising a corpus of 88 publications through a structured coding scheme. The results show that reported systems are predominantly at prototype and early validation stages (75.0% at TRL 4-6), with deployment-oriented evidence remaining rare (9.1%). Operational goals are most frequently positioned in user assistance, monitoring, and process optimisation, while conventional production-control purposes such as planning and scheduling are less prominent. Compared with an established baseline for industrial agent systems, the capability profile reveals substantial gains in human interaction (+37%) and dealing with uncertainty (+35%), but a pronounced deficit in negotiation (-39%). The most widely reported limitations concern lack of generalization, hallucination and output instability, data scarcity, and inference latency. A working definition of foundation-model-based industrial agents is also proposed, bridging conventional agent theory, automation-engineering standards, and the foundation-model paradigm.
Manufacturing has passed through four widely recognized paradigms - mechanization, electrification, programmable automation, and Smart Manufacturing - each defined by the kind of work it shifted from humans to machines. In every case, one layer of industrial work remained fundamentally human: the coordinative cognition of production, comprising the interpretive, allocative, diagnostic, negotiative, and governance work exercised by engineers, planners, and operational managers. We argue that a fifth transition is now underway in which this layer, rather than the physical or routine-cognitive layers below it, is what foundation-model-based autonomous agents primarily redistribute. We name this paradigm Agent Manufacturing and define it operationally: a manufacturing system is an instance of Agent Manufacturing when its principal coordination mechanism is reasoning performed by foundation-model agents that can interpret open-ended goals, plan over long horizons, invoke tools and machines, and negotiate with other agents and humans. This is a narrower and more falsifiable definition than the existing literature on cognitive manufacturing or Industry 5.0 provides, and it distinguishes the paradigm sharply from classical multi-agent manufacturing systems, which were autonomous only within closed protocol spaces.
AI for Industrial Asset Lifecycle Management aims to automate complex operational workflows, such as condition monitoring and maintenance scheduling, to minimize system downtime. While traditional AI/ML approaches solve narrow tasks in isolation, Large Language Model (LLM) agents offer a next-generation opportunity for end-to-end automation. In this paper, we introduce AssetOpsBench, a unified framework for orchestrating and evaluating domain-specific agents for Industry 4.0. AssetOpsBench provides a multimodal ecosystem comprising a catalog of four domain-specific agents, a curated dataset of 140+ human-authored natural-language queries grounded in real industrial scenarios, and a simulated, CouchDB-backed IoT environment. We introduce an automated evaluation framework that uses three key metrics to analyze architectural trade-offs between the Tool-As-Agent and Plan-Executor paradigms, along with a systematic procedure for the automated discovery of emerging failure modes. The practical relevance of AssetOpsBench is demonstrated by its broad community adoption, with 250+ users and over 500 agents submitted to our public benchmarking platform, supporting reproducible and scalable research for real-world industrial operations. The code is accesible at https://github.com/IBM/AssetOpsBench .
Foundation model agents are increasingly deployed for real-world decision-making, but suffer from the sim-to-real gap. While robotics and classical control have mature frameworks to address this gap, the foundation model community is treating agent robustness as an entirely novel phenomenon. Our paper proposes formalizing the foundation model agent evaluation and training gap as a classical sim-to-real problem structured entirely around the four elements of a Markov Decision Process, including Observation, Action, Transition, and Reward. In this paper, we set a comprehensive research agenda that translates classical discrepancies into the foundation model domain and advocates for adopting established solutions like domain randomization. We provide concrete examples, such as a multilingual tool calling to demonstrate how severe observation space gaps lead to operationally invalid actions despite correct semantic intent. Ultimately, this agenda aims to drive a paradigm shift, yielding a unified vocabulary and standardized stress test benchmarks to foster a new generation of highly trustworthy agents for reliable real-world applications.