History of IAI Center

Evolution of Industrial AI: From IMS to UMD IAI Center

 

Phase 1 – Foundations of Intelligent Maintenance Systems (2001–2019)

Institution: University of Cincinnati
Center: NSF Industry/University Cooperative Research Center on Intelligent Maintenance Systems (IMS Center)–a multi-campus Industry/University Cooperative Research Center in partnership with University of Michigan, Ann Arbor, and University of Texas Austin.
Founder: Prof. Jay Lee

Highlights

  • Early research in predictive maintenance, prognostics, and machine health management.

  • Introduced the concept of eMaintenance and Cyber-Physical Systems for Industry.

  • Pioneered the AI agent Watchdog Agent® architecture for data-driven diagnostics for edge level intelligent maintenance systems in 2001.

  • Collaborations with over 130 global companies, including Intel, United Technologies, Ford, GM, GE, P&G, Boeing, Caterpillar, and Siemens, Komatsu, Toshiba, Hitachi, Omron, Tokyo, Nissan, Daikin, Mitsubishi Electric, Alstom, Bosch, Samsung, etc.

Conceptual Foundations

“From reliability-centered maintenance to data-driven, self-aware, and predictive industrial systems.”— Jay Lee, Annual Reviews in Control (2013)

Key Achievements

  • Over 300 industrial case studies and global members.

  • Over 70+ PhD, 50+ MS, 30+ postdoctoral researchers, and 100+ visiting scholars.

  • Set the stage for Industrial Big Data and AI-enabled manufacturing research.


Phase 2 – Birth of Industrial AI (2018)

Institution: University of Cincinnati
New Entity: Industrial AI Center (IAI Center)

Milestone Event:

Industrial AI Workshop @ IBM Watson Research Center (2018, New York)

Workshop Objectives

  • Define “Industrial AI” as a discipline distinct from internet AI.

  • Discuss AI frameworks for manufacturing, energy, aerospace, and logistics.

  • Initiate the Industrial AI Framework → a system model bridging data, domain, and decision.

Concept Formalized

“Industrial AI is a systematic discipline that develops AI technologies to perform domain-specific tasks in industrial applications with measurable performance and trustworthiness.” — Jay Lee, Industrial AI: Applications with Sustainable Performance (Springer, 2020)

Core Research Themes

  • Industrial Big Data management

  • Edge and Embedded AI

  • Prognostics and Health Management (PHM)

  • Human–machine teaming in smart factories

  • Explainable and safe AI for industry

Key Output

  • Publication: Industrial AI: Applications with Sustainable Performance (Springer, 2020)
    → Established academic foundations and global adoption of the term Industrial AI.


Phase 3--Industrial AI in Action — The Foxconn Chapter (2018–2022)

Leadership Role

  • Prof. Jay Lee served as Vice Chairman of Foxconn Technology Group (also known as Hon Hai Precision Industry Co., Ltd.).

  • Reporting directly to Chairman Terry Gou, he was tasked with leading Foxconn’s Industrial AI and Smart Manufacturing Transformation initiatives.

  • During this period, he founded and led the Industrial AI Group (IAG) within Foxconn.

Industrial AI Group (IAG) — Core Mission

The IAG was designed as Foxconn’s internal applied AI research and deployment unit, translating the academic Industrial AI framework into real factory systems.

Core objectives:

  1. Build AI-enabled manufacturing platforms (smart scheduling, predictive quality, and real-time optimization).

  2. Deploy Industrial AI technologies across Foxconn’s global network of 1 million+ employees and 30+ manufacturing sites.

  3. Integrate digital twins, IIoT, and data-driven decision-making into Foxconn’s production ecosystem.

  4. Develop new digital manufacturing business models — enabling Foxconn to shift from a “hardware producer” to an “AI-driven solution provider.”

Key Achievements

Development of Six World Economic Forum (WEF) “Lighthouse Factories”

  • Under Lee’s leadership, Foxconn became one of the world’s top adopters of Industrial AI recognized by the World Economic Forum’s Global Lighthouse Network — factories acknowledged for “digital transformation at scale.”

  • These “Lighthouse Factories” embodied full Industrial AI integration:

    • Smart production lines using AI-driven visual inspection and robotics

    • Edge computing + digital twins for adaptive manufacturing

    • Data-driven quality prediction systems

    • Autonomous logistics and AI scheduling systems

Examples include:

  • Shenzhen Longhua Factory (Smart Manufacturing + Digital Twin)

  • Zhengzhou Factory (AI-enabled iPhone production lines)

  • Chengdu and Wuhan sites (industrial data analytics + resilience models)

  • Mexico and Czech Republic facilities (AI logistics and sustainability integration)

Outcome:

These factories demonstrated measurable improvements — double-digit gains in productivity, yield, and energy efficiency — and became global models for AI-driven industrial operations.

Technology Platforms and Methods Introduced

  • Industrial AI Framework implemented at scale — integrating Data, Domain, and Deployment.

  • Data Foundry + AI Factory concepts field-tested for the first time.

  • AI Twin systems for machine/process simulation and optimization.

  • Edge AI solutions for inspection, robotics, and equipment diagnostics.

  • AI + Human collaboration systems for production resilience.

Academic–Industrial Bridge

  • During his vice chairmanship, Prof. Lee maintained academic collaborations with leading universities and research labs.

  • Trained a new generation of industrial data scientists and engineers capable of deploying AI in manufacturing contexts.

  • These efforts helped establish the Industrial AI ecosystem that now extends across academia, industry, and government.

Global Recognition

  • The World Economic Forum (WEF) and McKinsey highlighted Foxconn’s Industrial AI Group as one of the top global exemplars of Industry 4.0 transformation.

  • WEF’s 2021–2022 Lighthouse Reports cite Foxconn’s “data-driven continuous learning factories” as a model for Industry 4.0 at scale.

  • Industrial AI moved from concept to reality, with measurable industrial impact.


Phase 4--Integration into Academic Return (2023–present)

After returning to academia full-time at the University of Maryland, Prof. Lee brought back the:

  • Industrial AI Group’s methodologies and deployment lessons from Foxconn

  • WEF Lighthouse factory architectures

  • Data Foundry + AI Factory model

These are now embedded into UMD’s Industrial AI Center, linking theory, practice, and education.

Transition to University of Maryland (2023–Present)

Institution: University of Maryland, College Park
Center: Industrial AI Center (IAI Center)
Director: Prof. Jay Lee

New Framework: “Data Foundry + AI Factory”

  • Data Foundry: Converts industrial data into AI-ready representations (data fusion, tokenization, knowledge graphs).

  • AI Factory: Deploys multi-agent AI systems for process optimization, predictive maintenance, and decision support.

  • Focuses on the “Four Fs” of industrial AI application:

    1. Factory

    2. Facility

    3. Field

    4. Fleet

Research Areas

  • Autonomous manufacturing systems

  • Edge and distributed industrial AI

  • Resilience and sustainability analytics

  • Agentic AI for operations and logistics

Partnerships

  • Continuing collaborations with Komatsu, Foxconn, Mitsubishi Electric, Hitachi Hi-Tech, HIWIN, UMC, ASE, Gestamp, Western Digital, NIST, etc.

  • Integration with UMD’s Artificial Intelligence Interdisciplinary Institute at Maryland (AIM).


Phase 5--The Present and Future (2025 → )

Goal: Industrial AI as the backbone of Industry 5.0 — human-centered, resilient, and sustainable industrial systems.

Emerging Directions

  • Agentic Industrial AI – autonomous decision agents for operations.

  • Cognitive Digital Twins – simulation + reasoning systems using AI.

  • Trustworthy Industrial AI – safety, verification, and transparency.

  • Industrial AI Education and Workforce Development – training next-gen industrial data scientists.


Updated Timeline Summary