IFS acquires theLoops to build AI agents for industrial operations

IFS has acquired Silicon Valley-based agentic AI specialist theLoops to advance what it calls “industrial AI,” positioning itself as a leader in enterprise-grade AI agents designed specifically for asset-intensive industries. The acquisition represents a strategic shift from traditional enterprise software that merely tracks work to deploying functional AI agents that actually perform workplace tasks in manufacturing, energy, utilities, construction, aerospace, and defense sectors.

What you should know: IFS is betting on specialized AI agents that understand industrial environments from day one, rather than generic chatbots or virtual assistants.

• The acquired theLoops technology will enable multi-agent environments where autonomous AI agents are “semantically aware of their operating environment” and suited for regulated, asset-intensive sectors.
• These industrial AI agents will participate in real enterprise workflows alongside humans while adhering to customer-defined security, data access, and compliance standards.
• TheLoops CEO Somya Kapoor retains her position within IFS and describes this as creating “autonomous AI agents that understand industrial complexity.”

Why this matters: The move addresses a significant opportunity in industries where traditional AI applications often fall short of operational requirements.

• Unlike general-purpose AI tools, these agents are designed to “speak the industrial language appropriate to the industry they are located in” and operate securely within specific workflows.
• IDC’s Aly Pinder, research vice president for aftermarket services strategies, suggests this approach enables “agentic decision making” that allows organizations to “rethink their digital workforce” in asset-intensive industries.

What they’re saying: Industry leaders emphasize the transformational potential beyond traditional AI capabilities.

• “This isn’t experimental; it’s transformational,” said Kapoor. “We’re creating autonomous AI agents that understand industrial complexity. They identify required work, determine execution pathways and implement software services with rigorous standards for security, ethics and scale.”
• IFS CEO Mark Moffat positioned this as “enterprise-grade agentic AI platform with security and governance, designed to deliver radical productivity improvements and measurable return on investment” rather than “a digital buddy, virtual assistant or some form of quirky workplace chatbot.”

Competitive landscape: IFS faces established players in the industrial AI space, though it claims a unique focus on specific verticals.

• Major competitors include Siemens with its MindSphere IoT AI platform, Schneider Electric’s EcoStruxure platform, and General Electric’s Predix platform for industrial asset management.
• Tech giants also compete with IBM Watson for industrial applications, Microsoft Azure AI for industrial analytics, Google Cloud’s vision-based inspection services, and AWS Lookout for Equipment.
• IFS argues its advantage lies in its “positively restricted” focus on specific industrial sectors, making it more suitable than applying “a standardized agentic AI service that works in a call center” to “an oil rig operations center.”

The big picture: The acquisition reflects a broader trend toward industry-specific AI solutions rather than one-size-fits-all approaches.

• IFS positions itself not just as an ERP (enterprise resource planning) provider but as a “systems of operations specialist for real world factory floors” with expertise in field service management, enterprise asset management, and human capital management.
• The company’s approach suggests that effective industrial AI requires deep understanding of specific operational contexts rather than generic automation capabilities.