Harnessing Engineering Intelligence: Unlocking the Future of Industrial Innovation

On April 29th, we had the privilege of hosting the second edition of our Enterprise AI Series breakfast sessions, focusing on the rapidly evolving landscape of Engineering Intelligence. This expert-led discussion convened founders, investors, operators and industry leaders, all united by a commitment to shaping the next frontier of industrial innovation.

Notably, the dialogue echoed several key insights uncovered by Forestay during our due diligence of Neural Concept, reinforcing the alignment between market trends and the innovations driving leading AI startups in the engineering space. Together, these insights offer a robust perspective on where the field stands today and where it is headed. Below, we elaborate on five pivotal themes that emerged, providing broader context and actionable implications for organizations navigating this transformative domain.

1. Accelerating Design Cycles and Enhancing Product Development.

Engineering Intelligence, in other words, the application of advanced AI and machine learning techniques to engineering processes, is revolutionizing the way complex physical products are designed and developed. Traditionally, the design cycle for industrial components or systems has been constrained by lengthy iterations, manual simulations, and costly prototyping phases.

Today, AI-powered design tools are enabling engineers to optimize designs in silico, dramatically reducing the time and cost required to bring superior products to market. According to McKinsey (2024), companies leveraging AI in product development can reduce time-to-market by up to 50%, unlocking significant competitive advantage. These gains are especially pronounced in sectors like aerospace, automotive, and advanced manufacturing, where even incremental improvements translate into substantial market impact. These industries are more and more pressured to design faster whilst being required to comply to more regulations and to a higher expectation for more sustainable products.

2. Disruption Across the Industrial Value Chain.

AI’s influence is not limited to product design; it is poised to transform the entire industrial value chain. From predictive maintenance using sensor data, to autonomous manufacturing operations, to intelligent supply chain optimization, AI is reshaping every node in the system. Deloitte (2025) projects that AI-driven efficiencies in industrial operations could contribute over $1 trillion in annual global economic value by 2030. Forestay is a frontrunner in investing in AI-led Industrial Technology companies such as Bluebotics (exited), Scandit and Neural Concept.

This transformation presents abundant opportunities for industrial firms to rethink their processes, harness data in new ways, and develop capabilities that were previously unattainable. However, realizing these gains requires not only technological adoption but also strategic alignment and cultural readiness across the organization.

3. Collaboration as the New Competitive Advantage.

A key insight from the session was the shifting nature of competition within the industrial technology ecosystem. While historically marked by sharp divides between established incumbents and agile startups, today’s landscape is increasingly defined by collaboration. Large software providers are recognizing the value of partnering with AI-native startups, combining the scale and stability of established players with the innovation and speed of emerging ventures.

Such partnerships are accelerating the development of next-generation solutions, enabling faster market entry and de-risking innovation for both sides. According to BCG research (2022), companies engaged in strategic alliances are 2.5 times more likely to report innovation success compared to those pursuing a go-it-alone approach.

4. Navigating Industrial Go-to-Market Complexities.

Selling into industrial markets presents unique challenges that demand a multidimensional go-to-market strategy. Industrial customers typically require both top-down engagement at the executive level to secure budget and alignment, and bottom-up buy-in from engineers and end users who will champion and ultimately implement the technology. The top-down approach is facilitated by the partnership approach mentioned above and the bottom-up approach has been typically the preferred route of start-ups at the beginning of their journey.

Successful go-to-market teams must therefore balance strategic sales motions with grassroots adoption, tailoring messaging and value propositions to resonate across organizational layers. This approach not only accelerates sales cycles but also improves long-term retention and customer success.

5. Addressing Data Bottlenecks Through Co-Creation.

Finally, the conversation underscored that while industrial companies often possess vast quantities of data, the true bottleneck lies in the structure, quality, and accessibility of that data. Without well-organized, clean, and labeled datasets, even the most sophisticated AI models cannot deliver meaningful insights or outcomes.

Overcoming this challenge requires a co-creative approach, where technology providers work hand-in-hand with industrial customers to understand data landscapes, co-develop solutions, and build data infrastructures fit for AI at scale. Industry research highlights that organizations with mature data governance practices are up to three times more likely to achieve successful AI deployment compared to their peers.

Looking Ahead.

We are deeply grateful to our distinguished panelists—Pierre Baqué (Neural Concept), Kevin A J Thompson (ex-Boeing), and Jonas Jeandupeux (Forestay)—for their invaluable contributions to this rich and forward-looking discussion. As the industrial innovation landscape continues to evolve, we remain committed to fostering dialogue, building connections, and supporting the builders and leaders driving this transformation.

If your organization is exploring or advancing Engineering Intelligence solutions, we invite you to connect with us. Together, we can shape the future of industrial innovation. You can contact us via Forestay’s website or email at contact@forestay.vc. Please stay tuned for upcoming events and more thought-provoking discussion.