AI-Driven Energy Management in Smart Factories

Authors

  • Hudson D. Holm Department of Computer Science, Binghamton University, Binghamton, NY, USA.

Keywords:

artificial intelligence, energy management, smart factory, Industry 4.0, predictive maintenance, edge computing, sustainability, socio-technical systems

Abstract

The convergence of artificial intelligence with industrial energy systems is reshaping the operational logic of smart factories, offering unprecedented opportunities for dynamic load balancing, predictive maintenance, and real-time consumption optimisation. This paper examines the architectural, infrastructural, and governance dimensions of AI-driven energy management within the broader socio-technical context of Industry 4.0. It argues that while machine learning models can significantly reduce energy intensity and carbon footprint, their deployment introduces structural trade-offs between model complexity, interpretability, robustness, and fairness. A system-level perspective is adopted to analyse how data pipelines, edge-cloud hierarchies, and control loops interact with regulatory frameworks and organisational incentives. Through cross-domain comparisons with smart grids and building automation, the paper highlights the unique challenges of industrial environments, including heterogeneous sensor networks, variable production schedules, and legacy equipment integration. The role of predictive maintenance in energy savings is critically assessed, with attention to data quality, model generalisation, and the risk of optimisation silos. Policy implications are explored, focusing on standardisation, transparency requirements, and the distribution of energy savings across stakeholders. The paper concludes by outlining future research directions that emphasise hybrid intelligence, federated learning, and human-in-the-loop architectures as pathways toward more resilient and equitable energy management systems.

References

1. Monostori, L., Kadar, B., Bauernhansl, T., Kondoh, S., Kumara, S., Reinhart, G., ... & Ueda, K. (2016). Cyber-physical systems in manufacturing. CIRP Annals, 65(2), 621-641.

2. Xu, L. D., Xu, E. L., & Li, L. (2018). Industry 4.0: State of the art and future trends. International Journal of Production Research, 56(8), 2941-2962.

3. Rojas, D. M., & Garg, A. (2020). Deep reinforcement learning for energy management in smart buildings: A survey. IEEE Access, 8, 143618-143636.

4. Zhang, Y., & Jiang, J. (2019). Machine learning for energy optimization in manufacturing systems: A review. Journal of Cleaner Production, 231, 1248-1263.

5. Mourtzis, D., Vlachou, E., & Milas, N. (2016). Industrial big data as a result of IoT adoption in manufacturing. Procedia CIRP, 55, 290-295.

6. Bortolini, M., Gamberi, M., & Gualano, F. (2017). A multi-objective approach for energy efficiency in manufacturing systems. International Journal of Production Research, 55(15), 4312-4330.

7. Cao, B., Li, W., & Fan, X. (2020). Edge computing in smart manufacturing: A comprehensive survey. IEEE Transactions on Industrial Informatics, 16(9), 5689-5700.

8. Shi, W., Cao, J., Zhang, Q., Li, Y., & Xu, L. (2016). Edge computing: Vision and challenges. IEEE Internet of Things Journal, 3(5), 637-646.

9. Kusiak, A. (2017). Smart manufacturing must embrace big data. Nature, 544(7648), 23-25.

10. Li, X., Ding, Q., & Sun, J. (2021). Self-supervised learning for industrial anomaly detection: A case study on energy consumption. IEEE Transactions on Industrial Electronics, 68(12), 12410-12419.

11. Zhao, Y., & Zhang, J. (2018). Load forecasting in industrial microgrids using random forests. Applied Energy, 228, 1311-1322.

12. Çınar, Z. M., Abdussalam Nuhu, A., Zeeshan, Q., Korhan, O., Asmael, M., & Safaei, B. (2020). Machine learning in predictive maintenance towards sustainable smart manufacturing in industry 4.0. Sustainability, 12(19), 8211.

13. Dulac-Arnold, G., Mankowitz, D., & Hester, T. (2019). Challenges of real-world reinforcement learning. arXiv preprint arXiv:1904.12901.

14. Kumar, P., & Singh, R. (2021). Life cycle assessment of predictive maintenance in smart factories. Journal of Industrial Ecology, 25(4), 922-935.

15. Ribeiro, M. T., Singh, S., & Guestrin, C. (2016). "Why should I trust you?" Explaining the predictions of any classifier. Proceedings of the 22nd ACM SIGKDD International Conference on Knowledge Discovery and Data Mining, 1135-1144.

16. IEEE Global Initiative on Ethics of Autonomous and Intelligent Systems. (2019). Ethically aligned design (2nd ed.). IEEE.

17. McMahan, B., Moore, E., Ramage, D., Hampson, S., & y Arcas, B. A. (2017). Communication-efficient learning of deep networks from decentralized data. Proceedings of the 20th International Conference on Artificial Intelligence and Statistics, 1273-1282.

18. Strubell, E., Ganesh, A., & McCallum, A. (2019). Energy and policy considerations for deep learning in NLP. Proceedings of the 57th Annual Meeting of the Association for Computational Linguistics, 3645-3650.

19. Lakshminarayanan, B., Pritzel, A., & Blundell, C. (2017). Simple and scalable predictive uncertainty estimation using deep ensembles. Advances in Neural Information Processing Systems, 30, 6402-6413.

20. Vazquez-Canteli, J. R., & Nagy, Z. (2019). Reinforcement learning for demand response: A review of algorithms and modeling techniques. Applied Energy, 235, 1072-1089.

21. Palensky, P., & Dietrich, D. (2011). Demand side management: Demand response, intelligent energy systems, and smart loads. IEEE Transactions on Industrial Informatics, 7(3), 381-388.

22. Lu, Y., & Xu, L. D. (2019). Interoperability in smart manufacturing: A review. IEEE Transactions on Industrial Informatics, 15(9), 4863-4875.

23. Hargreaves, T., Nye, M., & Burgess, J. (2013). Keeping energy visible? Exploring how householders interact with feedback from smart energy monitors in the longer term. Energy Policy, 52, 126-134.

24. Endsley, M. R. (2017). From here to autonomy: Lessons learned from human–automation research. Human Factors, 59(1), 5-27.

25. Bonawitz, K., Eichner, H., Grieskamp, W., Huba, D., Ingerman, A., Ivanov, V., ... & Roselander, J. (2019). Towards federated learning at scale: System design. Proceedings of Machine Learning and Systems, 1, 374-388.

Downloads

Published

2026-05-11

How to Cite

Hudson D. Holm. (2026). AI-Driven Energy Management in Smart Factories. Journal of Intelligent Engineering Systems , 1(1). Retrieved from https://jiesystems.org/index.php/home/article/view/97