Poland in the Cost Trap, but "with a Significant Advantage"

• The broader use of AI in the industrial sector is expected to lead to significant cost reductions through process optimization and increased overall productivity. "Many of our automotive customers have already reduced the development time of a new car to 25-27 months. There are many indications that in the near future this time will be reduced to 20-22 months," says the vice president of Dassault Systèmes.
• Dassault Systèmes is an international corporation and technology giant specializing in product lifecycle management software and 3D design and visualization.
• - The key question is how to address the energy challenges Poland faces. Although Poland may not have access to cheaper energy, there are ways to change this situation. In the discussions I had with NAFTA experts, one thing was clear: the current priority for Europe must be energy - its security and sustainable development. Without solid foundations in energy, other sectors of the economy have difficulty developing - argues Olivier Ribet.

How are companies using AI to increase their competitiveness? What has changed? In your opinion, are these changes evolutionary or revolutionary?

- AI enables companies to unlock and better leverage existing knowledge and know-how. In the past, much of this intellectual property was scattered across systems, databases and files, making it difficult to leverage. Before AI, finding the right information required knowing exactly what you were looking for.

With AI, companies can not only mine data in the traditional sense, but also discover previously hidden connections between different pieces of information. Whether it’s simulation data, customer feedback, or product design files, AI can combine these data sets to help companies better understand what a product can become. This ability to uncover hidden insights is a game-changer.

Recent advances in AI, especially in virtual assistants, are largely driven by large language models (LLMs) . These models represent one specific subset of AI, but they have had a significant impact on how companies use technology to stay competitive.

At Dassault Systèmes, we recently introduced a new generation of AI assistants called Virtual Companions. These intelligent companions go beyond simply helping you get things done—they offer proactive support, sometimes suggesting insights and solutions that we might not have anticipated. I believe this will significantly increase innovation, creativity, and productivity. By helping companies better analyze their data, supply chain, and partner networks, Virtual Companions can help you stay ahead of the competition in an increasingly complex and competitive environment.

AI is fundamentally changing the way businesses operate, enabling access to and use of information in ways that were previously unattainable. The potential for AI to drive innovation and competitiveness is enormous, and the changes we are witnessing are profoundly transforming industries.

Volkswagen accelerated thanks to artificial intelligence. It is cheaper by tens of millions of euros

How will the broader use of AI impact the operating costs of companies in the industrial sector?

- The broader adoption of AI in the industrial sector is expected to lead to significant cost reductions by optimizing processes and increasing overall productivity. AI technology can improve everything from resource allocation and maintenance scheduling to supply chain management, leading to faster decision-making and reduced waste.

A prime example is the partnership between Dassault Systèmes and Volkswagen . By implementing the 3DEXPERIENCE platform, Volkswagen is using AI to accelerate vehicle development, shorten production times and improve team collaboration. This integration allows the company to refine its processes, shorten product development cycles and improve both quality and sustainability, ultimately reducing costs and gaining a competitive advantage in the industry.

Many of our automotive customers have already reduced the development time of a new car to 25-27 months. There are indications that in the near future this time will be reduced to 20-22 months . Digital twin technology is a game-changer in the automotive industry. Powered by advanced AI, it seamlessly integrates different processes, operating models and tools. This allows manufacturers to model digital replicas of their products and systems, enabling simulation, optimization and collaboration in real time throughout the product lifecycle. Reducing the R&D, validation and certification process gives companies a huge advantage. It significantly reduces time, inventory, wasted resources, capital expenditure and ultimately: operating costs. When all this is combined, productivity can increase by up to 40 percent . And we are not talking about hundreds of thousands of euros in savings, but tens of millions saved thanks to this technology.

Designers and constructors are still needed, but for completely different tasks

Now let's talk a little about people. What human skills will we no longer need? Which professions will disappear from industries or companies in the coming years?

- Designers will always be necessary, but the nature of their work will evolve. AI can propose completely new designs for cars, trains, trucks or satellites, but it will not be able to fully implement these concepts. In this change, the role of designers and constructors will become more important. Why?

In the past, design and production teams had a common goal: to deliver a product on time, with the right quality and efficiency. When the product was ready, the process ended .

Today, however, in many of the industries we serve, a product is never truly complete, as modern products go through multiple life cycles and multiple uses. Many will be reused, repaired, upgraded or recycled several times. In sectors ranging from construction to science to energy, we work with assets such as factories, machines and more. These assets must evolve over time and be updated, often through software.

At first glance, this may seem odd. A car is just a car, right? Not really. The same vehicle can function in a completely new way if its software is updated. Over time, it can become faster, safer, and more energy efficient. Another example is that companies are increasingly designing buildings with the expectation that their purpose may change in the future—from an office building to a data center, for example.

There is also a growing emphasis on repair and recycling. Many modern products are not recyclable because their components have been glued together, making disassembly extremely difficult. However, it is possible to give damaged equipment a second life – if this possibility is considered at the design stage. By designing products with repair and recycling in mind, manufacturers can ensure that components can be easily separated and reused, reducing waste and contributing to a more sustainable life cycle. This shift underlines the importance of foresight in design, where considering the end of a product’s life is as important as its construction.

All of this ties in with the concept of the generative economy , where products are not only recyclable but can evolve and have extended life cycles. These cycles can last from 2-3 to 20 or even 30 years. The key here is the digital twin, which allows us to visualize existing products, simulate their changes over time and create new scenarios for their development. For example, one of our customers in China recently announced the launch of electric car batteries that can be fully charged in just five minutes, offering a range of 450-500 kilometers. This innovation highlights how products can evolve, become more sustainable and change the way we think about their lifespan.

By focusing on producing longer-lasting items, making them repairable and recyclable, we are moving away from the traditional model of continuous production, transforming the economy into one that prioritizes sustainability. In fact, in Germany, some of our customers no longer sell the product itself , but rather its operating hours – some call this “product as a service.”

This shift shows that there is more value in ensuring that a product is working reliably and knowing exactly when it will need maintenance. AI is playing a key role in making this vision a reality.

Europe has a problem because we lack specialists in key areas. "European supply chains must become more resilient"

You mentioned China. So let's focus on the new factors currently influencing the global economy. How is this currently affecting European industrial companies? What is business looking for now: investment or are they waiting for the situation to stabilize?

- Unfortunately, there is little sign of the situation stabilizing anytime soon. We are witnessing profound and transformative changes – not only in global power dynamics, but also in the way we approach geopolitics and the economic balance of international trade. How is this affecting European businesses? The effects are mixed.

Some companies are focused on rebuilding European independence, a trend that has been pioneered by pharmaceutical companies . Europe currently faces significant shortages of essential medicines due to the lack of direct access to key raw materials used in production. As a result, concerted efforts are being made to recreate the healthcare value chain in Europe.

A similar challenge exists in the energy sector, where much of the infrastructure in countries such as Italy, Spain, France, the UK and Germany is in need of modernisation, having been built in the 1950s and 1960s. Poland’s energy infrastructure is newer.

There is also a significant need across the continent to upgrade critical infrastructure, such as bridges, tunnels, the power grid and sewage systems. This requires significant investment and work, and companies in these countries – including those we work with – are heavily involved in planning and implementing reconstruction projects.

In addition, Europe faces skills shortages, especially in sectors such as energy . But these challenges also create opportunities for transformation, recovery and innovation across the continent.

To withstand the effects of trade wars and global uncertainty, European supply chains need to become more resilient . At the same time, stronger cooperation between European countries and companies is essential. Recently, we have witnessed unprecedented cooperation across industries, such as agreements between countries to develop joint technological advances. These partnerships are developing at a much faster pace than before, with projects that would have taken several years now being implemented in less than a year. However, one of the more difficult aspects of these initiatives remains the division of tasks between the countries involved.

Poland beats European competition thanks to infrastructure. Long-term thinking needed

This is related to my next question. I have come across opinions that Central European countries, including Poland, may benefit from the economic war between the US and China. Many business owners claim that foreign corporations' plants will be relocated to Poland to avoid customs duties and additional taxes, for example. Nearshoring - how do you assess this process in terms of opportunities for Poland?

- Nearshoring is already underway in several countries , and Poland is well-positioned to take advantage of it. However, making the most of this opportunity requires more than just tax breaks or short-term incentives - they are not part of a sustainable strategy. The key to success is solid infrastructure. Without well-developed airports, railways, roads and motorways, attracting industrial companies becomes very difficult. Poland has a significant advantage here, with a strong infrastructure that facilitates the flow of goods and people.

Equally important is the availability of a skilled workforce, and Poland is also a leader in this area. Your country offers a wide range of expertise, from chemical and engineering to electronics, IT and artificial intelligence, and boasts some of the best specialists in Europe. In addition, Poland’s dense network of academic and research centers provides a key support system for innovation and industrial development.

Geographically, Poland is ideally located in the heart of Europe, with access to both the seas and the economies of Southern Europe, while also benefiting from a large pool of highly specialized workers. This combination of factors makes Poland extremely attractive to companies considering nearshoring. Looking at the macroeconomic data, Poland is experiencing similar industrial growth to that experienced in southern Germany and northern Italy 15-20 years ago. At that time, their industrial growth was driven by a strong combination of university research, capital investment, and industrial production. This same dynamic is evident in Poland today, making it a unique place for companies looking to relocate and take advantage of these rare and valuable advantages.

Wage growth in Poland should not slow us down. Important "higher quality"

On the other hand, in recent years, Poles' salaries have increased, which has translated into a decrease in the competitiveness of our economy. Is this a factor that could slow down the Polish economy?

- Rising wages in Poland pose a challenge, especially in terms of maintaining competitive prices for businesses. However, this problem only becomes relevant up to a point. As wages rise, businesses often become more willing to pay for higher quality products and services that justify higher costs. This change can encourage greater innovation and specialization, which can help offset the loss of cost competitiveness.

The real challenge is how European policymakers will respond to these changes. In fact, similar transformations have already been successfully carried out by countries such as Spain, France and Germany. Ultimately, the foundations of a strong economy are based on knowledge and energy – key resources that continue to drive economic success despite rising labor costs. Poland’s increasing focus on these areas will help ensure its continued economic development.

"Without solid foundations in energy, other sectors of the economy have difficulty developing." What about Poland?

However, Poland is starting to lose more and more because of the state of our energy sector and the final price our entrepreneurs have to pay for energy.

- The key question is how to address the energy challenges Poland faces. While Poland may not have access to cheaper energy, there are ways to change this situation. In discussions I had with NAFTA experts, one thing was clear: the current priority for Europe must be energy - its security and sustainability. Without a solid foundation in energy, other sectors of the economy have difficulty developing.

It is encouraging that European energy companies are starting to cooperate more than ever before, recognizing the need to rebuild and modernize the energy grid. This highlights the key role of infrastructure. The main focus must be on renewable energy and significant investment is needed to scale up efforts. This will require close cooperation between European countries.

For example, Southern Europe, with its high levels of solar radiation, can focus on solar power generation, while Northern Europe, with its wind resources, can invest in wind power. At the same time, we see renewed interest and significant investment in nuclear power across the continent. By modernizing and connecting power grids across the continent, energy produced in one region could be shared more efficiently with others , creating a more integrated and resilient system.

The challenge now is whether European countries are ready to share resources and cooperate across borders. Europe's energy future depends on these joint efforts.