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Software lifecycle management is key to accelerated innovation in the era of software-defined vehicles

Steffen Krause
Aug 22, 2025

To succeed in a world of continuously evolving mobility, automakers must reimagine the product lifecycle around software. This calls for an advanced, unified software lifecycle management (SLM) approach that supports seamless, scalable, and reliable over-the-air (OTA) updates.

The automotive industry is undergoing a transformation unlike any seen in its 130-year history. Software-defined vehicles (SDVs), autonomous driving, connected services, intelligent automotive customer experiences – trends like these mean that software is at the heart of the industry’s value proposition.

What’s more, frequent software updates are now mandatory, because today’s vehicles are expected to evolve continuously. Consumers want new features and updates to roll out in cars the way they do on smartphones, so capabilities, performance improvements, and safety patches must all be delivered seamlessly OTA. Digital natives have already shown that OTA updates are a significant competitive differentiator.

To succeed in this new world, OEMs must keep OTA updates in mind from day one of the software development process. That implies:

Development models have yet to catch up with SDV requirements

A major obstacle to meeting these requirements today is that many automakers and tier 1 suppliers continue to rely on legacy development models that are rigid, sequential, and slow.

Their SLM approaches usually embody the old V-model, with its rigid phases and sequential testing, which means that these approaches simply can’t keep pace with the demands of modern automotive software. Trying to manage OTA updates with a legacy SLM approach is likely to result in unacceptable time to market and inconsistent software quality, so that OTA becomes a tactical patchwork rather than a strategic advantage.

What’s more, with these approaches, integrating feedback or fixing bugs can take months once physical vehicle production is complete. That might have worked in the old world of “build and forget,” but it can’t work in the new world of continuous innovation.

The solution: advanced, unified SLM

To achieve their goals, automakers need to introduce a unified SLM approach that embeds OTA and real-time update capabilities into architecture and processes, and that fosters collaboration between functional teams (software, hardware, safety, product, cloud).

This new style of SLM needs to have the following characteristics. It must be based on a hybrid Agile/V-model framework providing speed, safety, and traceability. It must support left-shifting of testing and validation using virtualization and simulation. And it must be part of a wider shift in the company’s architectural focus from hardware to software.

Let’s look at each of these points in more detail.

Left-shifting and virtualization

Left-shifting is about carrying out testing, validation, and verification as early as possible in the development lifecycle, so bugs are caught sooner.

Virtualization makes this possible. Engineers can simulate entire vehicle environments – ECUs, sensors, networks, even real-world driving conditions – before physical prototypes exist. This enables early integration testing of software components, automated regression testing across multiple configurations, and faster feedback between development and testing teams.

Virtualization also allows teams to run thousands of test scenarios in parallel, drastically reducing the time spent on late-stage debugging and physical validation.

Hybrid Agile / V-model framework

Rather than choose between Agile and V-model, the aim should be to integrate the best of both. Agile brings speed, flexibility, and iterative delivery, and enables teams to deliver value in small, manageable increments – perfect for feature-driven OTA updates. V-model, on the other hand, ensures safety, compliance, and traceability – critical in regulated industries like automotive. A hybrid SLM framework combines these strengths. Agile can be used for feature development and iterative refinement (e.g. infotainment, ADAS features). V-model principles can be applied to safety-critical systems (e.g. braking, steering, powertrain control).

In addition, the framework should maintain end-to-end traceability from requirements to deployment, with automated tools tracking changes across all phases. It should include continuous integration and continuous delivery (CI/CD) pipelines with safety gates and compliance checks.

This hybrid model enables rapid innovation without compromising safety or regulatory standards.

Shift of architectural focus from hardware to software

The SLM should be introduced in the context of a more general organizational shift toward a software-centric automotive architecture featuring:

  • consolidation of controllers/in-car-compute engines with clear software boundaries
  • service-oriented architecture (SOA) enabling modular, reusable components
  • open, standardized APIs and communication protocols
  • cloud-native development practices for OTA orchestration and analytics

SLM adoption paths

The journey to SLM maturity is about building a hybrid, adaptive approach that can be adopted in phases and then evolve through iteration. To succeed, SLM must be owned by the entire organization, not just software teams. That requires leadership buy-in, cross-function collaboration, and investment in tools and culture.

On this journey, traditional OEMs will encounter different challenges and opportunities from those faced by digital-native disruptors.

With their hardware-centric engineering culture, entrenched V-model processes, and complex, siloed IT and development environments, traditional OEMs need to instigate cultural and organizational changes, as well as technical ones. Indeed, many are already doing so, modernizing software architecture, building OSs, and investing in cloud-native development. Some are creating internal SLM platforms.

Digital natives already have the necessary agility, but may develop technical debt in their systems architecture and, eventually, legacy problems, because of a lack of SLM  rigor. As fleets grow to include millions of vehicles, these companies too need robust SLM backbones to manage software updates across diverse hardware variants, ensuring safety and compliance and maintaining backward compatibility.

SLM as an enabler of industry change

SLM and the automotive supply chain

The transformation of the automotive industry into a software-defined, cloud-connected mobility ecosystem is reshaping the supply chain.

Tier 1 suppliers and semiconductor manufacturers are becoming strategic partners in software lifecycle orchestration, and are evolving into system integrators and platform enablers. As well as components, suppliers may provide reference architectures, cloud-based development and testing environments, OTA management platforms, and fleet-wide diagnostics and analytics via cloud integration.

SLM has to be at the center of this transformation, furnishing the common language and governance layer that binds hardware, software, and cloud services together. It follows that SLM can’t be the sole responsibility of the OEM; it needs to evolve into a shared framework, with responsibility shared across the supply chain.

SLM and AI-first development

To take full advantage of AI, automakers will require a hybrid SLM approach that is optimized for AI. Such an approach must combine not only V-model and Agile but also DevOps (to automate software deployment) and MLOps (to automate AI models’ lifecycles through model training, versioning, validation, and so on).

Left-shifting validation and virtualization will be particularly important in the context of AI, because of the need to start training and validating AI models as early as possible in the lifecycle. (AI itself will help with this requirement since genAI can rapidly produce virtual sensor data, traffic patterns, and environmental conditions to be used in model training and validation.)

Modern SLM approaches need to cater for these needs. They must also support AI model certification, version control, and audit trails to address emerging regulatory requirements.

The road ahead

The next revolution won’t be in the car, but in how we create and manage the software that powers it. As the automotive industry evolves into a global mobility ecosystem, the value of software and connectivity will surpass that of hardware. The winners will be the companies that can deliver secure, reliable, and continuously evolving software at scale, rather than those with the fastest chips or the most powerful engines.

It all starts with efficient, effective, SLM, functioning not just in the OEM’s development lab but at every level of the supply chain, and serving as a catalyst for transformation. An advanced SLM approach can bring genuine competitive advantage.

If you’ll be at IAA Mobility 2025, please come and discuss these ideas with us at Capgemini’s booth, B22 in hall B1. Software is one of Capgemini’s major themes for this event, and we’re lining up software-related speaker sessions and demos to help our clients drive their businesses forward into a future of software-driven mobility.

Events

IAA Mobility 2025

Join us at Europe’s premier automotive event to experience the latest innovations and insights from the fast-moving world of mobility. 
Steffen Krause

Steffen Krause

Senior Director, Software Defined Vehicle, Capgemini Invent
Steffen Krause is a Senior Director at Capgemini Invent, leading initiatives in Software Defined Vehicle. With over 20 years of experience as a software architect and consultant across multiple industries, he brings deep expertise in digital transformation and automotive innovation. His work is focused on advancing the future of mobility through software-driven solutions.

    How the power of generative AI can transform customer satisfaction in the energy and utilities industry

    Bragadesh Damodaran & Amit Kumar
    19 Aug 2025

    The energy and utilities (E&U) industry is undergoing a dynamic transformation. Driven by emerging technologies from smart grids to the integration of renewable energy sources, the landscape is evolving rapidly.

    Generative AI (Gen AI) is poised to play a pivotal role in accelerating this shift, fostering innovation, efficiency, and new opportunities across industries worldwide. You can read about this transformation and more in our “Future of” series, here.

    What effect will Gen AI have on E&U end customers?

    Customer complaints are a longstanding challenge for E&U suppliers, particularly during peak seasons or service outages. A recent Ofgem report revealed troubling statistics about the service quality of 17 major UK energy suppliers. Customers often face chaotic experiences marked by inconsistent messaging, long wait times, and unresolved issues leading to frustration and dissatisfaction.

    The surge in call volumes (some suppliers reported a 300% increase since 2018), combined with a shortage of experienced agents, complex regulatory issues, and missing root cause analysis reports, has overwhelmed support teams. This results in high complaint rates, declining customer satisfaction scores, and reputational damage.

    How Gen AI can vastly improve customer interactions with E&U businesses

    Gen AI is already transforming customer support by streamlining complaint resolution, enhancing personalization, and reducing staff turnover. Key use cases include:

    • Automated bill summaries: Gen AI can generate clear, concise summaries of complex bills, enabling faster query resolution and empowering customer self-service.
    • Contextual routing: By analyzing historical queries, Gen AI can match current issues with agents who have relevant expertise, improving resolution speed and satisfaction.
    • Real-time knowledge assistance: Gen AI can interpret technical manuals and guides, presenting information in simple language to both customers and staff.
    • Sentiment analysis and personalized responses: Gen AI can assess customer tone and emotional state across channels, tailoring responses to foster empathy and clarity.
    • Predictive maintenance support: In IoT-enabled environments, Gen AI can predict service disruptions and proactively suggest preventative actions.
    • Email summarization: Gen AI can extract key information from lengthy emails, allowing agents to quickly understand and address issues.
    • Routine task automation: AI-powered chatbots can handle scheduling, payments, and FAQs using natural language.
    • Error reduction and consistency: Gen AI ensures accurate, consistent information across agents, improving service quality.
    • Operational insights: Gen AI enables better call center audits, agent coaching, and customer-agent matching, reducing average hold times and boosting productivity.

    These improvements not only enhance customer satisfaction but also drive profitability and reduce agent attrition. Root cause insights from Gen AI can inform future system and process design, creating a cycle of continuous improvement.

    As highlighted in the Capgemini Research Institute’s report Harnessing the value of generative AI: Top use cases across sectors, organizations are increasingly prioritizing Gen AI to elevate customer experience, with tools like ChatGPT becoming the preferred interface for product and service recommendations.

    What agentic AI and embodied AI mean for the E&U industry

    The next frontier is agentic AI, autonomous software agents that interact with their environment, gather data, and perform tasks to achieve defined goals. These agents leverage large language models (LLMs) to reason, act, and adapt dynamically.

    In customer service, agentic AI can autonomously manage enquiries, request additional information, and resolve issues, sometimes even overriding standard procedures when necessary. This autonomy enhances customer satisfaction and allows human agents to focus on complex, high-value tasks.

    Increasingly, we are also seeing the rise of embodied AI: AI systems integrated into physical or digital environments that can perceive, interact, and respond in real time. In the E&U context, embodied AI agents can be deployed in smart meters, grid management systems, and field service robotics to autonomously monitor, diagnose, and act on operational data. These agents combine Gen AI’s reasoning capabilities with sensor inputs and real-world feedback loops, enabling more adaptive and intelligent infrastructure.

    Capgemini and Gen AI in the E&U industry

    Generative AI presents a transformative opportunity for the E&U sector to transform customer experiences, optimize operations, and drive sustainable growth. However, successful adoption requires careful governance to mitigate risks and maintain control over AI processes.

    Capgemini’s Generative AI for Customer Experience offering helps E&U companies unlock Gen AI’s potential by building tuned foundation models and navigating implementation complexities. By leveraging our global network of certified Gen AI for CX experts, we accelerate deployment of industry-specific use cases that deliver tangible business value.

    With over 500 enterprise-ready use cases and demonstrators, and a track record of successful client engagements, we empower CxO leaders to drive high-impact transformation initiatives.

    Gen AI is here to transform the customer satisfaction. Get in touch with us to learn how we can partner with you on your transformation journey.

    Authors

    Bragadesh Damodaran

    Bragadesh Damodaran

    Vice President| Energy Transition & Utilities Industry Platform Leader, Capgemini
    He is responsible for driving Clients CXO Proximity through Industry Infused Innovation and Partnerships, Thought leadership, building Industry-centric Assets and Solutions with Intelligent Industry focus aligning to Energy Transition, Smart Grid, New Energies, Water, Nuclear and Customer Transformations. Bragadesh is a seasoned ET&U Industry and Strategy Consultant in a career spanning over 24 years. Worked for major multinationals driving E&U Value chain strategies and CXO Advisory.
    Carl Haigney

    Carl Haigney

    Vice President, Energy Transition & Utilities Leader
    Leading the UK Retail Energy subsector with a further responsibility as Executive Sponsor for the SmartDCC, RECCo and Ofgem activities, from sales through to delivery, building on the long partnership approach to delivering value. In parallel, leading the Energy Transition and Utilties Sector Capability Team for Customer Experience which brings together the full go-to-market capabilities including new proposition evolution for the sector. I sit on the techUK Smart Energy board, providing an advisory services from the industry into central government and regulators.
    Amit Kumar Gupta

    Amit Kumar Gupta

    Program Manager, Energy & Utilities- Gen AI for ET&U
    Amit brings over 18 years of expertise in the energy and utilities sector. As the Gen AI Lead in the ET&U industry platform, he specializes in asset development and industry intelligence, driving forward-thinking strategies and sustainable practices. He has spearheaded numerous innovative projects, developing industry-centric assets and solutions with a focus on intelligent industry practices. His extensive knowledge covers energy transition, smart grid, new energies, water, and oil & gas sectors while successfully collaborating with clients across various geographies, delivering impactful on-site solutions.
    Pranav Kumar

    Pranav Kumar

    Senior Director, Customer First and Gen AI for CX – Global Portfolio Leader
    As a seasoned leader in the realm of Digital, Data & AI, I take immense pride in managing portfolios that lead the way to unparalleled customer experiences. My passion lies in harnessing the power of Digital, Data & AI to elevate CX to new heights. Leading a high-performing team in driving data-driven CX initiatives, implementing generative AI solutions, and crafting cutting-edge conversational AI experiences. Committed to delivering customer-centric strategies and ensuring seamless, personalized interactions. Empowering teams to deliver Data-Driven CX solutions, fueling growth & loyalty.

      Go beyond compliance with data-driven product lifecycle intelligence across the electric vehicle battery value chain 

      Capgemini
      Aug 22, 2025

      Compiling and communicating upstream and downstream data on industrial batteries is key to increased circularity and transparency throughout the electric vehicle (EV) battery’s lifecycle. 

      The metals used in an EV’s battery travel an average of 90,000 kilometers via multiple actors across the value chain before they are even incorporated into the battery (its components, cells, and stacks). This is just one example of how global and complex the EV battery supply chain is.  

      Collecting, storing, and sharing data from every step of the product’s journey will be a complex, collaborative process. With the EU’s Digital Battery Passport (DBP) on the horizon for 2027, addressing this challenge has never been more pressing.  

      As a result of this urgency, many suppliers are asking, “Which kind of data do I need to collect today to prepare, and how can I ensure compliance tomorrow?” 

      Data enables upkeep and circularity  

      The DBP is a set of regulations governing the collection and sharing of data for batteries relevant for the industrial and transportation sector, including those used in EVs. The data stored in the DBP will help provide transparency on raw materials impact, usage and wear of EV batteries, which today are relatively hard to track. Without this data, EVs are difficult to resell and maintain. 

      A fully operational DBP will include upstream data to ensure due diligence, and downstream data for lifecycle management.  

      Upstream data refers to information about the raw materials and production of the battery. Collected from various parties, including miners and traders, it accounts for a huge share of the battery’s overall carbon footprint. This poses a logistical challenge, as it is not data that battery manufacturers traditionally collect and share.  

      Downstream data relies on a battery management system (BMS) to track the health and performance of the battery once it is installed in the EV. This data is either held locally in the car or communicated back to the manufacturer and is available for free to different stakeholders including the car owner, maintenance centers, recyclers, and legislators. This information can be stored safely in cloud- or blockchain-based systems, accessible via QR code. 

      A transformational journey 

      There is no doubt that collecting and communicating both upstream and downstream data poses a challenge, particularly at this pivotal moment in the automotive industry’s sustainability journey.  

      But if they focus on the challenges, suppliers risk missing the forest for the trees.  

      By providing an easily accessible cache of data on the battery’s origins, age, and performance over time, the DBP facilitates reselling, revamping, and upgrading. It tracks the level of wear on the battery in terms of residual autonomy, improving accuracy in circularity. 

      In other words, the DBP will be a vital tool for facilitating the long-term growth and profitability of the EV market. It will push the automotive industry into its next phase, a more sustainable and transparent one.  

      But first, DBP compliance requires an unshakeable foundation of comprehensive, reliable data so companies understand where they stand today. They also need data from across the value chain. For this, they must be able to rely on data from the entire ecosystem and in turn, share that information with consumers.  

      Traceability fosters transparency 

      Capgemini can help create and foster data strategy, architecture, and communication. Working with upstream and downstream inputs, and leveraging our partnerships across the industry, we can ensure the BMS is compatible with data collection in the cloud. Our Product Traceability for Automotive offer creates efficiency and reduces costs. 

      We are united in the effort to shape a more sustainable future. Now, we must work together to embrace regulations like the DBP, a key step along the way to achieving a more circular value chain.  

      To learn more about how to collect and incorporate data into strategic decision-making, contact

      Mobility, meet action. 


      You can also meet me at the upcoming IAA Mobility 2025 event to discuss about how we can go beyond compliance with data-driven product lifecycle intelligence to increase circularity and transparency throughout the electric vehicle (EV) battery’s lifecycle. 

      September 9-12, 2025 | Find us at Hall B1, Booth 22

      IAA Mobility 2025

      Join us at Europe’s premier automotive event to experience the latest innovations and insights from the fast-moving world of mobility. 

      Authors

      Dr. Dorothea Pohlmann

      Dr. Dorothea Pohlmann

      CTO Sustainability, Capgemini Engineering
      As Chief Technology Officer Sustainability, Dorothea is responsible for advising clients on business and engineering transformation projects. Her focus is on the development of sustainable products, assessing their impact on business and planet, adapting circular economy, integration of innovation, and leveraging digital technologies (such as quantum, digital twins, AI and ML) to accelerate our clients’ transformation from ambition to action. She holds a Ph.D. in Physics and works for more than 15 years at Capgemini.
      Dr. Alexandre Chureau

      Dr. Alexandre Chureau

      Lead Electrical, Electronic & Semiconductor Engineer, Capgemini Engineering
      Alexandre helps clients improve the lifespan of their batteries and reduce their environmental impact, by integrating innovative electronic and software solutions. He has 15 years of experience in the development and commercialization of electronic circuits that optimize batteries. He holds a PhD in micro and nano-electronics and is co-author of multiple patents in the field of battery management systems.

        Enhance manufacturing efficiency with AI

        Roshan Batheri
        Aug 20, 2025

        AI – including emerging forms such as agentic AI – can help to address many of the automotive industry’s hardest manufacturing challenges. Indeed, AI already underpins many automation solutions and smart factories. By empowering people in every area of manufacturing, the latest AI tools and techniques can create end-to-end value.

        The automotive industry predominantly operates on single-digit margins, making manufacturing efficiency a top strategic imperative for companies.

        However, today manufacturing itself faces significant challenges. New and disruptive products are introducing complexity as well as diversity; in addition, they often necessitate accelerated time to market. This challenge is compounded by others, including talent shortages and uncertainty around tariffs.

        Challenges like these could transform the manufacturing footprint, along with the fundamentals of manufacturing efficiency and the management of product diversity.

        To overcome the challenges, companies need to take manufacturing efficiency and agility to the next level, so that managing product diversity is no longer a challenge but a source of competitive advantage.

        AI-powered automation is already underway

        Automation and AI, including agentic AI, can enhance manufacturing efficiency and productivity in a wide range of ways, improving every aspect of production and helping companies hit their “right first time” quality targets, among other benefits. Adding AI plus sensors to robots can elevate them to “cobots” that are able to respond intelligently to their environment.

        Already, AI-enabled smart factories are becoming the norm, with predictive maintenance and robotics playing a central role. For example, at Capgemini we have leveraged AI to help a major European OEM design and implement a data-driven manufacturing organization. This work established the operating model and capabilities needed to realize value from data and analytics at scale.

        For the future, AI agents show special promise because of their ability to initiate actions autonomously, without prompting by humans.

        Fully autonomous agents will take time to arrive

        Introducing collaborative and trusted agents to a business requires a transformational journey. This journey begins with the identification of tasks and activities – both repetitive and non-repetitive – that could be undertaken by AI agents. The company must also identify appropriate types of agents (autonomous or not) for each of these activities and tasks.

        The most important part of the journey, however, is the alignment of AI agents with human ones, so that their interactions add up to a flawless agentic approach, flawlessly executed.

        This journey is likely to proceed stepwise. Initially, AI agents will just take over repetitive and lower-value tasks.

        As the model matures, however, agents will be used to perform more advanced tasks, but still with human monitoring.

        Eventually, AI agents will be able to anticipate human needs, providing companies with the ability to tackle a wide range of automotive manufacturing pain points.

        For example, AI agents will be able to accelerate time to market in response to changing consumer demands. They will enhance automotive sustainability by supporting better traceability, smarter energy use, and more efficient waste management. Everything from productivity to material flows can be improved using these techniques.

        Leveraging the collaborative power of AI agents will be essential

        Much of AI agents’ strength lies in their ability to collaborate. Adding AI agents to a team can mitigate skills shortages and provide new ways to get the best out of the existing workforce. That is because working with agents empowers people, enhancing their efficiency and effectiveness.

        As well as working in teams alongside humans, AI agents could in the future collaborate extensively with one another, each agent being responsible for a specific task. This approach could create immensely flexible and scalable solutions. Ultimately, a team of agents could take over the day-to-day running of a major manufacturing process or even an entire plant, freeing human experts to deal with more demanding work.

        Capgemini is actively exploring the potential of agentic AI for automotive manufacturing

        Applications of agentic technology that Capgemini has pioneered include a compliance assistant for lighting and signaling devices. This makes processes around 200 times faster and 1,000 times cheaper, as well as facilitating regulatory compliance.

        We are currently working on a range of copilots (AI-powered conversational assistants advising and supporting employees) for the entire manufacturing lifecycle. Our line design copilot, for example, can de-risk shopfloor layout configuration and accelerate decision-making, improving areas such as crash detection, ergonomics, and maintainability, and generally enhancing manufacturing efficiency.

        Another example from this range is the manufacturing execution system (MES) copilot, which accelerates requirements definition, configuration, and setup, and addresses regulatory topics and documentation creation. There are benefits in terms of both lead times and costs.

        As a final example, we are working with agentic AI in the context of Identity & Access Management (IAM). AI can make “role recommendations” that optimize organizational structures from the point of view of both security and efficiency. In addition, it can also be an integral part of identity as a service (IDaaS) solutions.

        Implementation of agentic AI in manufacturing is not straightforward

        AI-based automation can be a challenge in its own right for several reasons. Some areas of operation may lack the real-time data needed to support AI-enabled decision-making. The diversity of hardware in the ecosystem can cause complexity, as can the need to rethink the operating model.

        Before implementation starts, the lack of live use cases may make it difficult to obtain the return on investment stats needed to build a business case. And once a pilot exists, it may prove hard to scale and onerous to deploy enterprise-wide, or even factory-wide.

        So how can automotive companies overcome the barriers and succeed with AI in manufacturing?

        Four elements provide a foundation for implementing AI in your automotive manufacturing operation

        To overcome these barriers, we suggest putting four basic elements in place.

        1. Strong data & infrastructure foundation. Connect machines, assets, and control systems securely on the shop floor, and use industrial edge computing to unlock real-time data.
        2. Integrated operational systems. Integrate and orchestrate MES, SCADA, and so on into a unified edge-to-cloud ecosystem, increasing data consistency, transparency, and control.
        3. Support for intelligent & autonomous systems. This can include industrial AI, machine vision, predictive maintenance, and low-code platforms.
        4. Advanced industrial simulation. Use digital twins to enable virtual commissioning, validation, and optimization of industrial systems, applying simulation to everything from IT-OT validation to warehousing.

        As well as putting all these elements in place, companies must adopt a strategic approach to this major transformation of their businesses. This includes establishing the governance structures and mechanisms needed to keep a check on autonomous AI-powered systems.

        Successful AI adoption in automotive manufacturing depends on specific capabilities

        To develop and implement their AI strategy, automakers will require a range of technical and management expertise. As well as hands-on experience with all branches of AI, they need excellent abilities in organizational transformation management, since AI will not work unless it is fully embedded in the manufacturing operation and accepted by the workforce.

        In addition, implementers should be conversant with Lean manufacturing principles. That is because to realize its full potential in manufacturing, AI, particularly agentic AI, must interact with Lean. For example, the elimination of waste required by Lean could be achieved more effectively with the help of an AI engineer.

        Finally, companies must make workforce empowerment the primary focus of their AI initiatives. When AI enables people to realize their full potential, value can be unlocked from one end of the manufacturing operation to the other.

        Of course, Capgemini would love to help you with this journey. Please get in touch to find out more. And, if you’ll be at IAA Mobility 2025, please come and meet our team at booth B22 in hall B1. They’ll be happy to discuss how advanced AI could enhance the efficiency of your own manufacturing operation.

        Events

        IAA Mobility 2025

        Join us at Europe’s premier automotive event to experience the latest innovations and insights from the fast-moving world of mobility. 

        Author

        Roshan Batheri

        Roshan Batheri

        Sr Director | Automotive Supply Chain Offer Leader | Client Partner | North America
        Roshan is a seasoned global professional combined with strategic acumen, extensive domain knowledge, and proven track record to drive success. He has over 20 years of extensive experience in P&L management, strategic operations, supply chain management, IT transformation, business consulting and delivering innovative concepts and strategies in the automotive industry. He is an MBA and an Engineer, additionally holding various certifications such as a six sigma green belt and a certified lead auditor in quality management system, showcasing his commitment to excellence.

          Take supply chain resilience and efficiency to the next level with agentic AI

          Roshan Batheri
          Aug 20, 2025

          Can we drive transformational impact at the point of real-time operations to truly position the supply chain as a competitive advantage?

          Any inefficiencies, delays, or risks affect a business in real time, and therefore real-time responses to changing business conditions are essential.

          Agentic AI makes these real-time responses achievable – one reason why its adoption within supply chains is accelerating rapidly. For automotive companies facing today’s disruptions and uncertainties, agentic AI could therefore be a gamechanger.

          Current uncertainty around tariffs is just the latest contributor to today’s high levels of supply chain disruption, described in earlier blog posts like this one. As we reasoned then, AI has a major part to play in helping automotive companies deal with successive waves of disruption. The example given was that by reinforcing forecasting and planning capabilities with AI, companies can respond much more effectively to disruption.

          This blog post will look specifically at how agentic AI can enable real-time responsiveness in the automotive supply chain, and thereby build resilience. It follows on from a recent Capgemini article about the value of agentic AI for supply chains in general.

          How AI agents can help companies build automotive supply chain resilience

          An important application of agentic AI within the supply chain is the use of agents to make persona-based recommendations. The “persona” in this instance could be the COO, CFO, CSCO, or CPO, or a member of their teams.

          An AI agent can monitor conditions in a given area against preset business goals. When exceptions arise or thresholds are crossed, the agent can automatically recommend a course of action suited to the persona in question. Areas to be monitored might include:

          • The accuracy of supply chain forecasts. The AI agent can assess the risk of forecasting errors occurring and predict their impact on inventory and service levels. Then it can recommend corrective action to the COO’s team, and even, if required, execute the selected actions itself.
          • Quality risks and delivery risks associated with incoming parts. “Right first time” is key to automotive quality. The quality of parts received from suppliers, and the reliability of delivery, directly affect the quality of finished vehicles. Agentic AI can assess a part’s quality and delivery risks by analyzing vast sets of historic and real-time data. After comparing the results with the company’s risk thresholds, the AI agent can recommend ways for the CSCO’s team to mitigate unacceptable risks.
          • The financial impact of specific supply chain disruptions. The AI agent can compare the impact of different disruptions to help the CPO’s team prioritize possible investments in resilience.
          • The drivers of supply chain costs. The AI agent can recommend which drivers could be targeted for cost reduction, freeing up more funds for the CSCO’s team to invest in resilience-boosting measures.

          In addition to the persona-based recommendations, agentic AI can further increase resilience if it is used in a coordinating role that transcends all these functions. Drawing data from internal functions and directly from the supplier ecosystem, an AI agent can monitor the entire supply chain, flag up risks, and coordinate the responses of every part of the organization. It can then proactively suggest adjustments to planned actions, internal and external, based on the results.

          The potential impact of agentic AI on the automotive supply chain is sizeable and diverse, with research indicating that significant reductions in logistics spend, for example, are achievable. As adoption proceeds, even more business benefits are likely to emerge, and they will become easier to quantify.

          AI agents are already in use

          Although the concept of agentic AI is relatively new, companies are already embracing it. A recent Capgemini Research Institute report on agentic AI shows that 14% of organizations have implemented AI agents at partial (12%) or full scale (2%). Nearly a quarter (23%) have launched pilots, while another 61% are preparing for or exploring deployment.

          Looking now at some functional areas closely linked to the supply chain, 39% of respondents from Operations expect AI to manage at least one process or sub-process daily within the next 12 months, and a total of 75% believe this will be the case within three years. For Finance, the corresponding figures are 30% and 63%.

          Despite significant misgivings, including ethical concerns around AI, a sizable 38% of respondents expect AI agents to be functioning as members of human-supervised teams within the next three years.

          How automakers can integrate AI into supply chain solutions

          The CRI report on agentic AI makes a number of practical recommendations to help companies harness the full power of AI agents. Ensuring smooth collaboration between humans and AI agents is of fundamental importance, and depends on trust; the recommendations therefore center on the need to build trust in AI. Specific recommendations range from addressing ethical issues to overhauling processes, business models, and organizational structures to accommodate joint human-AI teams.

          When agentic AI is deployed in the automotive supply chain, an additional dimension of trust needs to be considered. The all-important trust between supplier and OEM could be jeopardized by the introduction of AI agents without supplier acceptance. Therefore, companies should communicate with their suppliers up front about the intended use of AI, addressing any concerns raised. This openness is especially important if AI agents will interact directly with suppliers – for example to reroute transportation in response to a disruption.

          Prewave and our commitment to revolutionizing supply chain risk management

          Capgemini believes that agentic AI, and AI in general, is pivotal to making the automotive supply chain into a source of competitive advantage.

          We’re helping our clients realize that advantage in a variety of ways. One is that we’ve joined forces with Prewave, a leading AI-driven supply chain risk intelligence platform that leverages cutting-edge AI technology to monitor and predict supply chain disruptions.

          By combining Capgemini’s expertise in digital transformation with Prewave’s innovative solutions, we deliver end-to-end enhancements in supply chain transparency, compliance, and resilience.

          Let’s talk agentic AI and supply chain at IAA Mobility 2025

          Capgemini will be at IAA Mobility 2025. Our team will be ready to discuss any of the issues raised in this article, as well as other aspects of the automotive supply chain.

          In addition, Capgemini and Prewave will be demonstrating an agentic AI solution that uses data to build a resilient supply chain – one that responds to change in real time, and even proactively.

          Please find details of Capgemini’s IAA Mobility activities here. And if you’re coming, do remember to register.

          Events

          IAA Mobility 2025

          Join us at Europe’s premier automotive event to experience the latest innovations and insights from the fast-moving world of mobility. 

          Author

          Roshan Batheri

          Roshan Batheri

          Sr Director | Automotive Supply Chain Offer Leader | Client Partner | North America
          Roshan is a seasoned global professional combined with strategic acumen, extensive domain knowledge, and proven track record to drive success. He has over 20 years of extensive experience in P&L management, strategic operations, supply chain management, IT transformation, business consulting and delivering innovative concepts and strategies in the automotive industry. He is an MBA and an Engineer, additionally holding various certifications such as a six sigma green belt and a certified lead auditor in quality management system, showcasing his commitment to excellence.

            Supply chain resilience – the AI way

            Sudarshan Sahu
            August 20, 2025

            Climate change isn’t a distant threat—it’s a reality to deal with now.

            Businesses need to rethink how they operate, especially when it comes to supply chains, which are crucial for global trade. Just like in the movie Interstellar, where survival depended on data, AI, and adaptability, today’s supply chains need to be flexible and smart to handle disruptions and climate challenges. AI-powered insights and actions are like the movie’s robot TARS: helping predict risks, optimize logistics, and reduce waste. Data ensures that every decision is as precise as a gravity equation. AI enhances precision in supply chains by analyzing vast data in real time, predicting risks, and optimizing logistics. It’s the key to transforming supply chains into smarter, greener, and more resilient systems that balance profitability with ecological responsibility.

            Supply chains aren’t just stretched — they’re under siege. Disruption is no longer the exception; it’s the norm. That’s why resilience — the ability to anticipate, adapt, and recover fast — has shifted from nice-to-have to non-negotiable. A recent report from The Business Continuity Institute delivers the reality check: 80% of organizations faced supply chain disruptions last year, most more than once. That’s an uptick despite better planning — proof that we’re still reacting more than we’re preparing. Meanwhile, sustainability pressures are mounting. With supply chains responsible for over 60% of global carbon emissions, according to the World Economic Forum, they’re no longer just operational engines — they’re climate liabilities too.

            Let’s face it—what we’re doing right now isn’t cutting it. The cracks in our supply chains are showing, and incremental fixes won’t be enough. It’s time for bold moves. If we want supply chains that can truly withstand shocks and stay ahead of the curve, we need to lean into smarter, faster, more adaptive solutions. That’s where AI steps in—not just as a tool, but as a game-changer. With its ability to forecast disruptions, optimize operations, and accelerate response times, AI is shaping the supply chains of the future. To stay ahead, companies must embrace green supply chain management (GSCM), where sustainability is built into every step. AI supercharges this shift, turning GSCM into a smart, data-driven engine. From cutting carbon to driving circular economies, AI enables supply chains that are not just efficient, but truly green.

            Resilience, not yet autonomous: Supply chains still heavily rely on people

            Supply chains are navigating a perfect storm: geopolitical instability, extreme weather, shifting consumer expectations — and growing uncertainty in global trade. Disruptions are no longer outliers; they’re part of the operating environment. While many organizations are embedding risk management into supply chain strategy, execution is still stuck in manual mode. Too much effort goes into collecting, cleaning, and stitching together data — leaving little room for insight, foresight, or speed. AI and machine learning are still underused, and critical response actions often rely on human intervention alone. The result? Slow reactions, mounting workloads, and talent focused on firefighting instead of forward-thinking.

            What’s missing? Technology that doesn’t just capture and store data, but actively turns it into prescriptive insights and clear, actionable recommendations. Unfortunately, most tools in the market today still fall short of that promise. Instead, businesses are left stitching together manual processes and siloed teams to make sense of a rapidly changing environment. To build truly resilient supply chains, we need to shift from reactive, human-heavy models to intelligent, tech-augmented systems. The future isn’t about replacing people—it’s about empowering them with tools that amplify their decision-making, speed up response times, and free them to focus on what matters most.

            Greening the chain: How AI and data are changing the game

            Data and AI are at the core of this transformation, delivering unmatched insights, predictive accuracy, and optimization potential. By leveraging real-time data and predictive analytics, AI can identify potential risks—such as supplier delays, extreme weather, or geopolitical issues—before they impact operations. This early warning capability allows businesses to proactively mitigate threats through alternative sourcing, dynamic rerouting, or inventory adjustments. AI also enables scenario modeling, helping organizations test various disruption scenarios and build contingency plans with data-backed confidence. As a result, companies can maintain continuity, reduce downtime, and ensure customer satisfaction, even in the face of unexpected challenges. In today’s volatile global environment, AI is no longer a luxury but a critical enabler of resilient and future-ready supply chains.

            AI-enhanced supply chain resilience framework

            The AI-enhanced supply chain resilience framework strengthens supply chain agility and robustness by harnessing advanced AI technologies. It integrates real-time data from IoT devices into a centralized system for comprehensive analysis. Through predictive analytics and machine learning, the framework forecasts demand and detects potential risks—like supplier disruptions or market shifts—enabling proactive risk mitigation and smarter decisions in areas like inventory and logistics.

            AI-driven communication tools improve collaboration with suppliers and stakeholders, ensuring seamless, transparent information flow. Continuous monitoring and adaptive feedback loops allow the supply chain to respond swiftly to changing conditions, driving ongoing improvement and innovation. By adopting this framework, businesses gain end-to-end visibility, reduce vulnerabilities, and ensure operational continuity—ultimately building a more resilient and high-performing supply chain.

            Leveraging AI enables businesses to streamline operations, improve efficiency, cut costs, and elevate customer experiences. One powerful application is demand forecasting, where AI analyzes historical data to accurately predict customer needs. This leads to smarter inventory management—minimizing overstock and stockouts while optimizing capital use. Another key use case is route optimization. AI-driven tools evaluate factors like weather, traffic, and transport costs to determine the most efficient delivery paths. This reduces time and expenses while ensuring faster, more reliable service that meets growing customer expectations.

            How organizations can harness it effectively:

            According to the International Data Corporation (IDC), 55% of Forbes Global 2000 OEMs are projected to have revamped their service supply chains with AI and by 2026, 60% of Asia based 2000 companies will use generative artificial intelligence (GenAI) tools to support core supply chain processes as well as dynamic supply chain design and will leverage AI to reduce operating costs by 5%. This signifies a widespread adoption of AI to improve efficiency and gain a competitive advantage in supply chain management. Further, Generative AI can be harnessed to monitor global events and proactively identify emerging risks. It can automatically generate risk assessments, simulate scenarios, and suggest strategic mitigation plans—empowering supply chain teams to manage risks more effectively. Its conversational interface enhances user experience and accelerates response times. Over time, this evolves into a system-guided, data-driven approach, drawing from a rich library of scenarios and mitigation strategies to deliver contextual, timely responses to risk events.

            Considering all of the facts

            The fusion of data and AI isn’t just a tech upgrade — it’s a strategic shift for building supply chains that can bend without breaking. Organizations that embed intelligence into their operations now won’t just survive the next disruption — they’ll lead the transition to greener, faster, more adaptive ecosystems. By 2025, global supply chains will be reengineered out of necessity and powered by innovation. AI won’t just help companies — it will help nations stay resilient, competitive, and climate-conscious. It will redefine how we make, move, and manage everything. And like TARS in Interstellar, the most effective systems won’t just follow instructions — they’ll anticipate, adapt, and act as true copilots. What supply chains need now isn’t just visibility. It’s vision.

            Start innovating now –

            Give your supply chain an AI-enabled sixth sense

            • Plug your supply chain into real-time feeds—from IoT sensors to storm trackers—and let AI act like your all-seeing oracle. Spot trouble (like delayed shipments or political curveballs) before it hits the fan

            Make generative AI your strategic co-pilot

            • Leverage Generative AI to generate real-time risk assessments, simulate disruption scenarios, and recommend mitigation strategies, all in a conversational interface

            Build a digital twin—your virtual supply chain lab

            • Think of it as a flight simulator for your supply chain. A digital twin lets you mirror operations in a virtual space to test “what-if” scenarios—from port delays to carbon constraints—without breaking a sweat in real life.

            Interesting read? Capgemini’s Innovation publication, Data-powered Innovation Review – Wave 10 features more such captivating innovation articles with contributions from leading experts from Capgemini. Explore the transformative potential of generative AI, data platforms, and sustainability-driven tech. Find all previous Waves here.  Find all previous Waves here.

            Meet the author

            Sudarshan Sahu

            Sudarshan Sahu

            Process Lead, Emerging Technology Team, Data Futures Domain, Capgemini
            Sudarshan possesses deep knowledge in emerging big data technologies, data architectures, and implementing cutting-edge solutions for data-driven decision-making. He is enthusiastic about exploring and adopting the latest trends in big data, blending innovation with practical strategies for sustainable growth. At the forefront of the industry, currently he is working on projects that harness AI-driven analytics and machine learning to shape the next generation of big data solutions. He likes to stay ahead of the curve in big data trends to propel businesses into the future.

              Amplifying human potential: Why keeping humans at the heart of automation is essential

              Priya Ganesh, Vice President, Head of F&A Solutions, Capgemini's Business Services
              Priya Ganesh
              Jul 31, 2025

              “AI is rapidly becoming embedded in the systems that power modern business, but its success still depends on the people behind it. Human oversight, intuition, and contextual understanding are what give automation its edge. As organizations evolve, those that build with ethics, adaptability, and purpose in mind will set the pace for their respective industries.” – Priya Ganesh 

              Automation has become a central talking point for today’s businesses. But as the discussions grow more technical, something has been notably absent from the conversation: humans. In the race to automate, one thing is increasingly clear; the real value of AI lies in not replacing humans, but in leveraging machine efficiency to empower us to reach new heights. 

              As AI and automation capabilities continue to scale across industries, organizations have both a unique opportunity and a growing responsibility to bring the human element back into focus. AI has the power to amplify human potential by offloading the repetitive tasks that consume so much of our time each day. But to remain effective, human oversight is an essential aspect of every AI system. From critical decision-making to ethical oversight, humans provide the adaptability, judgment, and real-world experience that are vital to the success of automation. Building robust collaborations between humans and machines ensures a future where human expertise and AI advancement drive ethical, creative, and innovative outcomes together. 

              What happens when humans stay at the core 

              By leveraging AI across more mechanical tasks, companies are streamlining operations and unlocking opportunities for people to focus on more strategic, creative, and value-driven work. Whether it’s accelerating product development cycles, improving customer experiences, or enhancing decision-making, automation is enabling improved outcomes for businesses. 

              When humans remain at the heart of intelligent systems, the benefits begin to multiply. Predictive analytics powered by AI can deliver real-time insights that help organizations anticipate market shifts, tailor offerings, and improve business agility. When data-driven intelligence is combined with human knowledge and judgment, the result is more thoughtful, nuanced, and effective action.  

              Human-centered AI in action 

              Human intuition, ethical reasoning, and contextual understanding provide the framework within which automation can truly thrive. Across industries, the integration of AI into business operations is accelerating, but so is the realization that technology must be tempered by human judgment. Companies at the forefront are embedding oversight mechanisms into their AI systems not only to protect against risk, but also to reinforce trust in the technology.  

              An American cloud-based software company recently launched Einstein AI – a generative AI platform that integrates large language models (LLMs) directly into user workflows to power predictions, recommendations, and chatbots for the organization’s full product line. Understanding the increased decision-making power this platform grants to AI, the organization has concurrently developed The Office of Ethical and Humane Use (OEHU), which ensures that human oversight and a set of core regulatory principles responsibly govern the platform – underlining its commitment to trusted AI. 

              In retail, the conversation around responsible AI is equally urgent. One American multinational retailer is expanding its use of AI to enhance customer service, streamline operations, and boost productivity. However, the threat of AI hallucinations – misleading or inaccurate outputs – presents real risks, including customer misinformation, financial exposure, and legal liability. To mitigate these risks, the retailer is strategically incorporating human oversight at key checkpoints within its AI systems, focusing intervention on high-risk areas where accuracy and accountability matter most. 

              In the telecommunications sector, a major American provider is taking a proactive approach to govern its AI initiatives. The organization has developed an internal AI Leadership Council, which consists of leaders from its legal, IT, security, and network teams, to set policies that prioritize ethical AI use, data privacy, and risk mitigation. The primary purpose of the council is to ensure human judgment shapes the trajectory of the company’s AI evolution along every step of the journey.  

              As these examples show, responsible AI isn’t just about what technology can do. It’s about who remains in control. Whether through cross-disciplinary councils, ethical use advisory teams, or targeted human checkpoints, organizations are designing systems where human oversight is a guiding principle. 

              Building a more human operating model 

              As automation matures and AI becomes more deeply embedded into business operations, organizations are entering a new chapter defined by intentional design, ethical guardrails, and true human-machine partnership. The focus is shifting from implementation to impact, with a growing understanding that how we build matters just as much as what we build.  

              This trend marks the beginning of a more collaborative approach to innovation. It’s a vision of the future where human insight shapes intelligent systems and technology is developed to support adaptability, creativity, and trust. This is not a temporary adjustment, but a long-term shift that will transform how businesses grow, compete, and evolve. Organizations that embrace this mindset will lay the foundation for more resilient, responsive, and responsible systems. When automation is designed around people and not just processes, it opens the door to a future that is as human as it is high performing.  

              Learn more 

              • TechnoVision 2025 – your guide to emerging technology trends 
              • CTRL-ALT-Human – a new trend in Process on the Fly 
              • Voices of TechnoVision – a blog series inspired by Capgemini’s TechnoVision 2025 that highlights the latest technology trends, industry use cases, and their business impact. This series further guides today’s decision makers on their journey to access the potential of technology. 

              Meet the author

              Priya Ganesh, Vice President, Head of F&A Solutions, Capgemini's Business Services

              Priya Ganesh

              Chief Outcomes Officer, Capgemini Business Services
              Priya Ganesh, a seasoned finance and accounting professional, excels in solution design, transformation, and operations management. Her strengths lie in client relationship management, change management, and implementing finance business transformation models. Currently, she focuses on transformative solution design and presentation for global finance and accounting accounts, showcasing expertise in innovative contract renegotiations.

                Capgemini addresses IAM security challenges with new IAM FastTrack

                Peter Gunning
                Aug 18, 2025

                As identity and password-based cyberattacks increase, the urgency grows for clients to migrate from legacy identity solutions quickly as they transition to zero trust and start adopting AI, while protecting themselves from sophisticated cyberattacks. At Capgemini, we know identity governance, security, and productivity can align through innovation, but the process of selecting, procuring, and implementing effective solutions can take years, while the challenges are here and now.

                Identity tool sprawl has created overlapping policies, features, and functionalities. Managing legacy on-prem identity technology alongside cloud identity continues to be a difficult area to manage and requires fresh thinking to navigate through today’s identity security challenges. 

                Organizations need to consolidate and standardize identity governance and automation for productivity at speed, so that their security teams to have the best chance of protecting the identity attack surface, fast.

                Risk through complexity

                The identity lifecycle’s complexity, and risk to security, often only becomes apparent during breaches when a rogue identity can gain permission, explore the network, and find crucial unsecured systems and datastores to expose, export, or encrypt. Security risks come from all angles as we try to accommodate internal and external collaboration needs, machine and human identities, JML journeys, and privileged access.

                Good control over the identity and access management lifecycles is possible, but needs strong, automated policies and procedures and a transparent control plane.

                Multiple requirements across different personas

                Mature organizations will have well-structured identity data stores, constructed so that personas and other logical groups of entities are well-defined and can be administered and controlled according to local criteria defining what they can or cannot do. 

                Privileged identity management and conditional access policies need to be in place to ensure that access to privileged resources is controlled and that a zero-trust ethos pervades across the organization.

                Recertification campaigns back this up, ensuring access is restricted to personas who still need it and automatically removed from those who don’t. Segregation of duties policies prevent dangerous combinations of permissions and help demonstrate good governance to auditors.

                Managing third-party identities can be especially challenging, but there are cross-cloud tools available that can bring it back under control, ensuring that “3P” identities can be monitored, recertified, and automatically removed from your AD when they leave the provider, along with any permissions they held.

                But getting all of this in place in a reasonable timeframe can seem overwhelming.

                Capgemini’s new Microsoft Entra FastTrack

                Increasingly Capgemini is contacted by organizations, often already on the Microsoft platform, seeking advice on rapidly implementable solutions to these IAM security challenges, especially as the cybersecurity world changes quickly around us. Responding to this demand, Capgemini has developed a Microsoft Entra-specific version of our tried and tested FastTrack assessment methodology.

                Today, many organizations use Microsoft Entra tools, even if only as the main corporate Active Directory. While many CISOs rely on this as the organization’s main identity store and authentication and authorization mechanism, they do not necessarily understand the extent to which Entra can be used as a tool to enforce good governance of identity and access management processes and that there may be an opportunity to exploit or extend existing capability to fulfill their requirements.

                With the frequency of cyber-attacks on the rise it is becoming increasingly important that organisations are able to respond to the threat landscape as quickly as possible, preferably using existing tools and minimising disruption to collaboration and mission-critical business functions. In many cases, Entra, with its widespread adoption and multi-use-case capability, may be the best option to fulfil these criteria.

                Launched recently, our Entra FastTrack analyzes an organization’s current state of IAM maturity, assesses its requirements, and creates a detailed report and roadmap based on the exploitation or extension of existing Microsoft Entra assets, leading to the right path to security and compliance fast, without the need to spend months or years reaching for new solutions.

                This FastTrack leverages Capgemini’s long history delivering Microsoft implementations across multiple sectors, allowing us to bring our own real-world experience and recommendations to the delivery, and accelerating the migration away from existing legacy infrastructure.

                Conclusion

                Capgemini’s new Microsoft Entra FastTrack could be your organization’s best and fastest way to improving your IAM and IGA processes and securing your assets against cyberattacks, without the need for expensive research and deployment of new solutions.

                About the author

                Peter Gunning

                Peter Gunning

                IAM Consultant, Capgemini UK
                Peter is a seasoned Identity and Access Management (IAM) professional with over 20 years of experience. He has held senior IAM roles across the Finance and Telecommunications sectors, bringing deep expertise in designing and implementing secure, scalable identity solutions. Currently, Peter serves as an IAM Consultant within Capgemini UK’s IAM practice, where he helps clients strengthen their security posture through strategic IAM initiatives.

                  Cold storage, hot insights – Managing data efficiently with Sentinel’s new storage tiers

                  Mona Ghadiri
                  Aug 14, 2025

                  As security data volumes continue to grow, organizations face the dual challenge of retaining data for long periods while managing storage costs. Microsoft Sentinel Data Lake addresses this with the introduction of a new cold storage tier – an innovation that brings flexibility, scalability, and cost-efficiency to security data management.

                  Understanding the cold storage tier

                  The cold storage tier is designed for long-term retention of infrequently accessed data. It complements the existing hot and warm tiers, enabling organizations to implement a tiered storage strategy that aligns with their operational and compliance needs. With seamless transitions between tiers, security teams can access historical data when needed without incurring high costs.

                  This is particularly valuable for industries with stringent regulatory requirements or those conducting forensic investigations. Cold storage ensures that data remains accessible and secure, even years after it was collected.

                  Benefits for security operations

                  The new storage tier offers several advantages:

                  • Significant cost savings for long-term data retention
                  • Simplified compliance with data governance policies
                  • On-demand access to archived data for threat hunting and analysis.

                  By optimizing storage costs, organizations can allocate more resources to proactive security measures and advanced analytics.

                  Capgemini’s MXDR services: Maximizing storage efficiency


                  Capgemini’s MXDR services are uniquely positioned to take advantage of Sentinel’s new storage capabilities. Through its Cyber Defense Centers, Capgemini helps clients implement intelligent data retention strategies that balance performance and cost.
                  With the cold storage tier, Capgemini can:

                  • Store historical telemetry for extended periods without budget strain
                  • Enable retrospective threat analysis and compliance audits over longer periods of time
                  • Integrate storage policies with real-time monitoring and response workflows.

                  This holistic approach ensures that clients not only meet regulatory requirements but also enhance their overall security posture.

                  Strategic value for the future


                  The addition of cold storage to Microsoft Sentinel Data Lake is more than a technical upgrade – it’s a strategic enabler. It empowers organizations to retain valuable data, derive insights from it, and respond to threats with greater agility. When combined with Capgemini’s MXDR expertise, the result is a powerful, cost-effective solution for modern security operations.

                  About the author

                  Mona Ghadiri

                  Mona Ghadiri

                  Vice President, Global Offer Lead for Cybersecurity Defense
                  Mona is a three-time Microsoft Security MVP, recognized for expertise in SIEM, XDR, and Security Copilot. She has led development of Microsoft-based cyber services and now focuses on SOC transformation, pragmatic AI in security, and talent development. A global speaker and advocate for women in AI and cybersecurity, she serves on multiple Microsoft community boards. Mona holds a BA and MBA and brings a unique blend of product leadership, engineering, and industry recognition.

                    Generative AI drives smarter marketing decisions

                    Dinand Tinholt
                    August 13, 2025

                    Increased competition means companies must understand their customers like never before. Using Agentic AI to harvest insights and drive marketing KPIs is game-changing, but marketers need the right plan to take full advantage of it.

                    Enterprises must continually improve their understanding of audiences and how to engage them to effectively respond to increasing competitive pressures. It’s critical for a firm’s marketing experts to take advantage of every tool to inform smarter decisions.

                    New, Multi-AI Agents can deliver the insights that drive winning campaigns, but marketing departments must be prepared to take full advantage of these powerful tools. It starts with the right roadmap and strategic technology partner.

                    Challenges for every marketing pro

                    In my conversations with Chief Marketing Officers, I’ve identified several common goals for improvement. These include:

                    • Converting contact center data into valuable insights that help to design effective, customer-centric strategies
                    • Minimizing customer churn
                    • Using market intelligence to increase customer conversions

                    A company’s own data is an important source of the information required to help CMOs, Chief Experience Officers, and other marketing professionals achieve these goals. Unfortunately, legacy business intelligence systems often fail to deliver, for several reasons:

                    • Analytics systems rarely support strategic foresight and transformative innovation, instead providing business users with yet another dashboard.
                    • The results are often, at best, a topic for discussion at the next team meeting. This is not sufficient for a decision-maker to act upon immediately and with confidence.
                    • Systems typically fail to personalize their output to provide insights contextualized for the person viewing them, instead offering a generic, unsatisfying result.
                    • Systems often aggregate data within silos, which means their output still requires additional interpretation to be valuable.

                    In short, many legacy systems miss the big picture, miss actionable meaning, miss the persona and miss the point.

                    Based on my experience, I recommend an organization address this through multi-AI agent systems.

                    The Gen AI Strategic Intelligence System by Capgemini bridges the gap between the old way, and a value-driven future. This system converts the vast amounts of data generated by each client across their enterprise, into actionable insights. It is agentic, meaning that it operates continuously and is capable of independent decision-making, planning, and execution without human supervision. The solution examines its own work to identify ways to improve it rather than simply responding to prompts. It’s also able to collaborate with multiple AI agents with specialized roles, to engage in more complex problem solving and deliver better results.

                    How would organizations potentially go about doing this?

                    A well-crafted plan for Agentic AI-powered insights

                    First, organizations must establish a clear roadmap to take full advantage of Agentic AI-enabled decision-making. This should align technology with business objectives.

                    It starts by identifying the end goals, the core business objectives and associated KPIs relevant to the marketing team. These are the basis upon which the team contributes to the organization’s business value. Strengthening them is always a smart exercise. The good news is that even small improvements to any of these KPIs can deliver enormous benefits.

                    The roadmap should take advantage of pre-existing AI models to generate predictive insights. It should also ensure scalability, reliability, and manageability of all AI agents, not just within the realm of marketing and customer experience, but throughout the organization. And it should be designed to leverage domain-centric data products from disparate enterprise resource planning and IT systems.

                    Finally, the roadmap must identify initiatives to ensure the quality and reliability of the organization’s data by pursuing best-in-class data strategies. These include:

                    • deploying the right platform to build secure, reliable, and scalable solutions
                    • implementing an enterprise-wide governance framework
                    • establishing the guardrails that protect data privacy, define how generative AI can be used, and shield brand reputation

                    The right partner delivers more than technology

                    Second, the organization must engage the right strategic partner – one that can provide business transformation expertise, industry-specific knowledge, and innovative Agentic AI solutions.

                    Capgemini uses its technology expertise, partnerships with all major platform providers, and experience across multiple industrial sectors to design, deliver, and support generative AI strategies and solutions that are secure, reliable, and tailored to its clients unique needs.

                    The solution draws upon the client’s data ecosystem to perform root-cause analysis of KPI changes and then generates prescriptive recommendations and next-best actions that are tailored to each persona within the marketing team. The result is goal-oriented insights aligned with business objectives, ready to empower the organization through actionable roadmaps for sustainable growth and competitive advantage.

                    *Applying agentic AI to customer experience

                    Here’s a use case that demonstrates the potential of an agentic Gen AI solution for customer experience.

                    A marketing department wants to leverage its contact center data to improve customer experience, boost operational efficiency, and manage costs. This requires a comprehensive view of contact center operations, including insights into customer interactions, interaction channels, and outcomes.

                    An analytics solution powered by agentic generative AI can deliver hierarchical views of customer service level and KPI metrics, conduct near real-time (NRT), around the clock trend analysis for service level agreements, highlight correlations between dependent KPIs for continuous improvement initiatives, provide early warning systems for emerging customer experience challenges, and enhance churn prediction.

                    The impact can include a 10 percent boost to upsell closure, and a 20 percent improvement to customer satisfaction. Capgemini enables this use case through an AI CX insights 360 solution offered for the Gen AI Strategic Intelligent System by Capgemini.

                    Just imagine this agent working 24/7 on your behalf. They don’t sleep, they don’t get tired, they don’t take vacation, and they’re completely autonomous. 

                    Meaningful, actionable results  
                    With the right implementation and support, the potential benefits include better access to market intelligence, as well as significant opportunities for growth through cross-selling, up-selling, and capitalizing on both marketing white spaces and competitive insights. 

                    Capgemini’s modeling suggests such a solution would accelerate the speed and rate of customer acquisition by 75 percent, while lowering the cost. It would also boost customer satisfaction scores by 20 percent and increase customer conversions by more than 50 percent.

                    Given the direct relationship between customer-experience excellence and revenue generation, those are meaningful advantages that cannot be ignored.

                    *Results based on industry benchmarks and observed outcomes from similar initiatives with clients. Individual results will vary.

                    The Gen AI Strategic Intelligence System by Capgemini works across all industrial sectors, and integrates seamlessly with various corporate domains. Download our PoV here to learn more or contact our below expert if you would like to discuss this further.

                    Meet the author

                    Dinand Tinholt

                    Dinand Tinholt

                    Vice President, Insights & Data, Capgemini
                    “Even while investment levels in data and AI initiatives are increasing, organizations continue to struggle to become data-powered. Many have yet to forge a supportive culture and a large number are not managing data as a business asset. For many firms, people and process challenges are the biggest barriers in activating data across the enterprise.”