IFS Cloud 25R2 Unleashes Digital Workers to Combat Industrial Labor Crisis

IFS has launched a major new update to its industrial software platform. IFS Cloud 25R2 introduces “agentic” Digital Workers. This release aims to solve a critical industry problem: a massive shortage of skilled labor.

The launch happened at the Industrial X Unleashed event in November. Company leaders stated this AI is built specifically for complex industrial environments. It is not a generic consumer tool.

How Digital Workers Multiply Human Capacity

The new Digital Workers are intelligent software agents. They can make decisions and complete entire workflows autonomously. IFS calls them “agentic” because they can think and act within set rules.

Five specialist Digital Workers were unveiled first. They manage customer orders, supplier orders, inventory, operations analysis, and material replenishment. These agents handle repetitive, time-consuming tasks.

This frees human experts for more strategic and complex work. According to Reuters, industries from manufacturing to aviation face a retirement wave. Pedro Buhigas, CIO at Kodiak Gas Services, cited a potential $3 million annual ROI from using the agents.

He noted it would give 90,000 hours back to field technicians each year. The technology integrates directly into daily workflows. It provides instant answers and automated reporting for frontline teams.

Economic Headwinds: A Dismal Forecast for UK Incomes

Meanwhile, a separate IFS—the Institute for Fiscal Studies—issued a stark economic warning. Its analysis of the UK’s recent budget forecasts “truly dismal” growth in living standards. Average disposable income will grow just 0.5% per year for five years.

This is far below the 2% average seen in decades past. Helen Miller, a director at the IFS, said the budget did not change a backdrop of stagnating living standards. The government has raised taxes and borrowing, but the impact on households remains severe.

Key measures include extended freezes on income tax thresholds. New caps on pension contributions were also announced. The Resolution Foundation think tank supports the IFS view, noting most tax rises are delayed until just before the next election.

IFS Cloud 25R2 represents a direct technological response to productivity drains, even as economic analysts warn that broader financial pressures on workers and households are set to intensify in the coming years. The contrast highlights a modern dilemma: technology can create capacity, but fiscal policy determines its value.

Info at your fingertips

What is an agentic Digital Worker?

It is a specialized AI software agent built for industrial tasks. It can autonomously execute multi-step workflows, like managing inventory or processing orders, within a governed framework.

What problem does IFS Cloud 25R2 solve?

It tackles severe labor shortages and “invisible work” that sap productivity. By automating low-value tasks, it aims to multiply the effective capacity of the existing workforce.

What did the Institute for Fiscal Studies say about the UK budget?

The IFS called the outlook for living standards “truly dismal.” It forecasts average disposable income growth of only 0.5% annually, a major slowdown from historical trends.

Are the UK’s tax rises happening now?

Not immediately. According to IFS and Resolution Foundation analysis, about three-quarters of the planned tax increases are backloaded to take effect just before the 2029 general election.

Trusted Sources

Information in this report was gathered from official IFS release materials and verified reporting from Reuters regarding the industrial labor market. Economic analysis is based on the published report from the Institute for Fiscal Studies (IFS) and supporting commentary from the Resolution Foundation.