BMW’s virtual factory uses AI and simulation to design better next gen factories
BMW have been using a virtual simulation and AI to create the perfect optimised factory, for humans and robots, before they build the real thing.
Key takeaways
- German car maker BMW likes experimenting with the latest technologies.
- The new virtual factory, as real as it gets The simulation is part of BMW’s plan to use more AI in manufacturing.
- BMW used a software platform called Omniverse, developed by the chipmaker Nvidia, to recreate the Regensburg production line.
Cite or link to this article
Griffin, M. (2021) 'BMW’s virtual factory uses AI and simulation to design better next gen factories', 311 Institute, 12 May. Available at: https://www.311institute.com/bmws-virtual-factory-uses-ai-and-simulation-to-design-their-next-gen-factories/ (Accessed: 8 October 2026).
German car maker BMW likes experimenting with the latest technologies. Recently they used one of the world’s most powerful prototype Quantum computers to optimise their supply chain, and now they’ve announced plans to start making drivetrains for electric vehicles at a vast factory in Regensburg, Bavaria, later in 2021, but with a twist, the future factory already has a digital twin before it’s even built. And this, frankly, is the future of manufacturing …
As a sign of the times and well before any new parts roll off the production line BMW’s entire manufacturing process in the factory will run in stunningly realistic detail inside a perfectly crafted virtual simulation that won’t only let the company optimise every aspect of the factory’s operations before it’s even built.
Furthermore, when the real factory is constructed this same digital twin will let the robots on the factory floor teach one another new tricks via hive minds, AKA Artificial Intelligence (AI) and the cloud, and then, with the addition of digital human avatars in the simulation it could even improve and optimise the working conditions of the human workers too.
“The virtual simulation allows managers to plan the production process in greater detail than was previously possible,” says Markus Grüneisl, who leads production strategy at BMW. “We now have a perfect digital twin of our real-time production,” he says.











The new virtual factory, as real as it gets
The simulation is part of BMW’s plan to use more AI in manufacturing. Grüneisl says machine learning algorithms can simulate robots performing complex manoeuvres to find the most efficient process. Over time, BMW wants to use the simulation to have robots learn how to perform increasingly complex jobs.
BMW used a software platform called Omniverse, developed by the chipmaker Nvidia, to recreate the Regensburg production line. Last year, BMW said it was using an AI platform from Nvidia called Isaac to train robots for certain new tasks.
“In the future, I am very positive that we can just put a new robot in this facility, and say, ‘OK, talk with the other robots and find the best way to produce this [vehicle],’” Grüneisl says.
Manufacturers have used computer simulations to hone their assembly lines for some time. But Omniverse allows the entire production process to be simulated with photo-realistic details, aswell as with physical properties like gravity and different materials.
It’s also possible to lay out the production process from start to finish, and to see how changes to one part might have knock-on effects on another. It is easier to build a more complex virtual environment because different 3D models can be imported into the system, and Omniverse uses an open file standard compatible with numerous computer-aided design packages.
The software even simulates avatars of human workers grabbing parts and tools and assembling components in order to find the best procedure and minimise ergonomic problems.
“It might also make it possible for fewer workers to complete a particular job,” Grüneisl says.
“We do AI simulation of how people move around the factory,” says Richard Kerris, general manager for Omniverse at Nvidia. He calls the project “one of the most complex simulations that's ever been done.” There’s growing interest in using AI to control robots and other industrial machines.
Encouraged by recent progress in AI and virtual simulation training some companies like Elon Musk’s OpenAI and Tesla, as well as Amazon, Google, NASA, and others, have been using these simulations to develop and train self-driving vehicles and robots millions of times faster than could be done with traditional technologies and techniques. This often uses an AI approach called reinforcement learning, which involves an algorithm experimenting and learning, from positive feedback, how to achieve a specific goal.
“This is definitely the way to go,” says Ding Zhao, a professor at Carnegie Mellon University who focuses on AI and virtual simulations. Zhao says simulations are crucial to using AI for industrial applications, partly because it is impossible to run machines through millions of cycles to gather training data. In addition, he says, it’s important for machine learning models to learn by experimenting with unsafe situations, such as two robots colliding, which cannot be done with real hardware.
“Machine learning is data-hungry, and collecting it in the real world is expensive and risky,” he says.
Willy Shih, a professor at Harvard Business School who specializes in manufacturing technology, says the sophistication of simulation has been increasing steadily, and he says simulation primarily saves time and money by pre-empting future manufacturing problems.
Shih says there is plenty of hype around AI for manufacturing but adds, “There are lots and lots of applications” for the technology too.
Meanwhile back at Nvidia CEO Jensen Huang discussed BMW’s use of Omniverse during his keynote at the company's annual GTC conference, held virtually on Monday. Nvidia initially made graphics chips for gaming but broadened its focus when these chips proved adept at training AI programs. The company has since leapt into several other industries where AI is important, including automotive and medical imaging.
Source: BMW
What this means for your organisation
Design the plant before building it.
BMW recreated the Regensburg production line in Omniverse before the real factory exists. Its production strategy lead says managers can now plan in greater detail than before. Teams can also see how a change to one part affects another, which is why factory digital twins sit at Prepare, with wide use expected by 2030.
Let robots learn where mistakes are safe.
Reinforcement learning is trial and error with rewards for good choices. A Carnegie Mellon professor says machines cannot be run through millions of cycles in the real world, and that unsafe cases such as two robots colliding cannot be tried on real hardware. Simulation gives that learning a safe place to happen, and reinforcement learning is rated Act now.
Treat workers as part of the model.
BMW's simulation includes avatars of human workers grabbing parts and tools, to find the best procedure and reduce ergonomic problems. BMW's production strategy lead also says it might let fewer workers complete a particular job. Leaders should be open about both effects, and keep in mind a Harvard Business School view that there is plenty of hype, but also many real uses.
Three questions for your next leadership meeting
- Which of our processes could we test in simulation before spending on hardware?
- Do we hold enough safe, usable data for our robots to learn from?
- How will we explain to workers what a simulation of their movements is used for?
The trends and technologies behind this story
From the 311 Starburst, the 311 Strategic Intelligence Unit’s map of the technologies and trends shaping the next 50 years.
Analysis by the 311 Strategic Intelligence Unit, from Matthew Griffin’s article and 311 data. First published on Fanatical Futurist.
FAQ
Why does this matter?
BMW have been using a virtual simulation and AI to create the perfect optimised factory, for humans and robots, before they build the real thing.

About the author
Matthew Griffin Founder, President and Futurist, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 17-time best selling author of the "Codex of the Future" series, Matthew is the Founder, President and Futurist of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
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Sources and further reading
- Nvidia omniverse platform developer.nvidia.com
- train robots for certain new tasks nvidia.com
- Zhao ding meche.engineering.cmu.edu
- Profile hbs.edu
- Bmw group and nvidia take virtual factory planning to the next level press.bmwgroup.com
Source: first published by the 311 Institute on 12 May 2021. Cite as: Griffin, M. (2021). BMW’s virtual factory uses AI and simulation to design better next gen factories. 311 Institute. https://www.311institute.com/bmws-virtual-factory-uses-ai-and-simulation-to-design-their-next-gen-factories/
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