Gofore (GOFORE) Investor Update summary

AI adoption and impact in industry

• AI is expected to revolutionize industrial operations, but most leaders see this as a gradual process over the next decade rather than an immediate shift, with companies cautiously preparing rather than rushing into large-scale projects.

• Benefits from AI in industrial settings are already visible, especially in automation, robotics, and predictive maintenance, though many companies underestimate the impact or do not recognize these as AI-driven.

• Predictability and foresight are key benefits, with AI enabling better forecasting, maintenance, and customer experience, but cultural caution and high safety standards slow adoption in Europe.

• A lack of willingness to be pioneers and fragmented innovation processes hinder rapid progress, while global competition, especially from China and the US, is intensifying.

• Companies are advised to integrate AI into core strategies and foster innovation cultures, focusing on high-impact projects and data readiness.

Digital transformation and strategy at KONE

• KONE's new strategy, "Rise to Lead," aims for leadership in innovation, sustainability, growth, and profitability, with a strong focus on digital transformation and modernization.

• The company is connecting all assets to IoT, using AI for predictive maintenance, technician support, and remote services, targeting a 10% annual growth in service business.

• AI-driven solutions have reduced elevator failures by 40% and enabled proactive identification of up to 70% of faults, with ambitions to reach 80%.

• User-centric development, leadership commitment, and willingness to change business models are highlighted as critical success factors.

• Company culture emphasizing courage, collaboration, and customer focus is seen as essential for successful transformation.

Navigating EU regulation and compliance

• Organizations manage regulatory complexity through dedicated project teams, cross-functional involvement, and technological tools to interpret and implement new laws.

• Top management's active involvement, situational awareness, and ethical leadership are crucial for successful compliance and organizational maturity.

• The biggest challenges include vague regulations, differing interpretations across countries, and resource constraints, especially for SMEs.

• Regulations are increasingly seen as opportunities to improve data traceability, transparency, and competitive advantage, especially in sustainability and cybersecurity.

• Key advice includes monitoring upcoming EU legislative changes, ensuring sufficient resources, prioritizing cyber risk management, and advancing data digitalization.