Digital Technology May Restructure the Chemical Industry Landscape

Digitalization and artificial intelligence (AI) are creating opportunities and risks that could transform the chemical industry landscape—a view increasingly shared by global chemical industry professionals. Recently, Chris Musso, Senior Partner at McKinsey & Company and Head of its Global Chemicals Practice, stated during a webinar titled "Exploring AI Opportunities in the Chemical Industry," hosted by the French Chemical Industry Association, that AI is significantly benefiting chemical companies by enabling them to easily draw on past achievements and apply internal research advancements anytime, anywhere.

"We are on the brink of a digital revolution that will profoundly impact the chemical industry," Musso said. "Companies that rapidly adapt to this digital transformation may end up acquiring those that cannot, leading to industry consolidation. This digital revolution will define future acquisition trends, shape leaders, and reshape the entire industry."

Dan Futter, Chief Commercial Officer at Dow Inc., said during the same webinar that chemical companies must fully recognize that merely possessing data is not enough to outperform competitors—data must be empowered through technology, strategic focus, and organizational alignment to become a competitive advantage. Futter noted that Dow currently has 10,000 active Microsoft Copilot licenses across all functions of the company. Usage is particularly high in commercial functions such as sales and marketing, with significant engagement also seen in supply chain management, R&D, and manufacturing.

Konstantinos Chalikios, Chief Digital Officer at Westlake Corporation, said during the webinar that Westlake is also using the Microsoft Copilot stack, customized for specific roles within the organization where substantial benefits can be realized, focusing on maintenance, manufacturing, and commercial operations. Chalikios explained that Westlake possesses decades of accumulated information, which, with the help of AI, offers unprecedented opportunities for major progress previously unattainable. Advanced technologies now allow companies like Westlake to simulate changes in requirements for existing product formulations and assess feasibility while maintaining core material performance—often a primary concern.

Moien Haque, Head of Enterprise Data and AI at International Flavors & Fragrances Inc. (IFF), said the real advantage of digital technologies lies in accelerating discovery and experimentation processes and effectively targeting new ideas. "These ideas are best driven by market insights and consumer trends derived from market intelligence," Haque said during the webinar. "Integrating these insights into product portfolios is crucial for identifying differentiated needs." Additionally, digitizing data is enhancing knowledge management, fostering collaboration, and improving information sharing, potentially adding value and speeding up processes. However, broader knowledge sharing remains a challenge.

Michael Todd, Global Head of New Business Development for Adhesives Innovation at Germany’s Henkel, said that when the pandemic hit, Henkel Adhesive Technologies began advancing innovation through integrated digital tools. Since then, the company's transformation has been remarkable, but Henkel expects even greater progress ahead. Todd noted that in recent years, Henkel has successfully deployed the AlbertInvent platform across its entire R&D organization, which includes about 3,000 employees and around 60 laboratories in 22 countries. Nick Tauchen, co-founder and CEO of AlbertInvent, said the Albert platform is designed to enable comprehensive data capture across all stages of workflows.

In addition, Nouryon, Chemours, Solenis, and Malar have also adopted the AlbertInvent platform. Tauchen said they all aim to accelerate processes, improve product quality, and integrate AI and machine learning into their product development cycles.

Christophe de Maistre, President of Energy & Chemicals at Schneider Electric, said that as a leader in automation and digital transformation, Schneider Electric provides software-defined automation solutions offering flexibility and scalability critical to digital transformation in industries like chemicals. "By decoupling hardware from software, chemical companies can adopt best-in-class technologies without being locked into proprietary systems," de Maistre said.

De Maistre highlighted the collaboration between Schneider Electric and Swiss company GR3N as a powerful example of how automation unlocks production potential traditionally difficult to scale in the plastic recycling sector—specifically for industrial-scale chemical recycling of polyethylene terephthalate (PET). GR3N’s microwave-assisted depolymerization technology chemically breaks down PET waste into new PET pellets of near-virgin quality, enabling closed-loop recycling. Schneider Electric provides open automation system solutions that support GR3N’s transition from proof-of-concept to industrial-scale deployment, enhancing production flexibility and efficiency. The combination of GR3N’s microwave-assisted depolymerization and Schneider Electric’s software-defined automation represents a significant step forward for hard-to-recycle materials like PET.

Many chemical companies are also investing in developing digital solutions for customers. Nalco Water, Ecolab’s water and process management business, has developed the Inlet Integrity Program, designed to proactively address scaling and corrosion risks through full-process management services and analytics, helping protect natural gas processing operations.

"Scaling can significantly impair the efficiency of natural gas processing operations," said Lotty Elwood, Senior Vice President and General Manager of Global Chemicals at Nalco Water. "Without proactive measures, operators face frequent planned shutdowns, which are costly and time-consuming. With a comprehensive approach, we can help gas processors achieve reliable, efficient operations while reducing operating costs." Elwood added that while the Inlet Integrity Program does not yet use sensing or automation technologies, the company’s field service teams leverage the ECOLAB3D smart platform to analyze and benchmark performance data. She noted that Ecolab currently operates a global network of over 30,000 systems managing water treatment performance and industrial assets, along with a suite of intelligent solutions providing customers with real-time and proactive analytics.