Industry 4.0 to Industry 5.0 Explorations in the Transition from a Techno-economic to a Socio-technical Future (Susu Nousal, Gary Metcalf, David Ing, (Editors)) (Z-Library)

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Translational Systems Sciences 41 Susu Nousala Gary Metcalf David Ing   Editors Industry 4.0 to Industry 5.0 Explorations in the Transition from a Techno-economic to a Socio-technical Future

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Translational Systems Sciences Volume 41 Editors-in-Chief Kyoichi Kijima, School of Business Management,Bandung Institute of Technology, Tokyo, Japan Hiroshi Deguchi, Faculty of Commerce and Economics, Chiba University of Commerce, Tokyo, Japan

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In 1956, Kenneth Boulding explained the concept of General Systems Theory as a skeleton of science. He describes that it hopes to develop something like a "spectrum" of theories—a system of systems which may perform the function of a "gestalt" in theoretical construction. Such "gestalts" in special fields have been of great value in directing research towards the gaps which they reveal. There were, at that time, other important conceptual frameworks and theories, such as cybernetics. Additional theories and applications developed later, including synergetics, cognitive science, complex adaptive systems, and many others. Some focused on principles within specific domains of knowledge and others crossed areas of knowledge and practice, along the spectrum described by Boulding. Also in 1956, the Society for General Systems Research (now the International Society for the Systems Sciences) was founded. One of the concerns of the founders, even then, was the state of the human condition, and what science could do about it. The present Translational Systems Sciences book series aims at cultivating a new frontier of systems sciences for contributing to the need for practical applications that benefit people. The concept of translational research originally comes from medical science for enhancing human health and well-being. Translational medical research is often labeled as “Bench to Bedside.” It places emphasis on translating the findings in basic research (at bench) more quickly and efficiently into medical practice (at bedside). At the same time, needs and demands from practice drive the development of new and innovative ideas and concepts. In this tightly coupled process it is essential to remove barriers to multi-disciplinary collaboration. The present series attempts to bridge and integrate basic research founded in systems concepts, logic, theories and models with systems practices and methodologies, into a process of systems research. Since both bench and bedside involve diverse stakeholder groups, including researchers, practitioners and users, translational systems science works to create common platforms for language to activate the “bench to bedside” cycle. In order to create a resilient and sustainable society in the twenty-first century, we unquestionably need open social innovation through which we create new social values, and realize them in society by connecting diverse ideas and developing new solutions. We assume three types of social values, namely: (1) values relevant to social infrastructure such as safety, security, and amenity; (2) values created by innovation in business, economics, and management practices; and, (3) values necessary for community sustainability brought about by conflict resolution and consensus building. The series will first approach these social values from a systems science perspective by drawing on a range of disciplines in trans-disciplinary and cross-cultural ways. They may include social systems theory, sociology, business administration, management information science, organization science, computational mathematical organization theory, economics, evolutionary economics, international political science, jurisprudence, policy science, socio- information studies, cognitive science, artificial intelligence, complex adaptive systems theory, philosophy of science, and other related disciplines. In addition, this series will promote translational systems science as a means of scientific research that facilitates the translation of findings from basic science to practical applications, and vice versa. We believe that this book series should advance a new frontier in

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systems sciences by presenting theoretical and conceptual frameworks, as well as theories for design and application, for twenty-first-century socioeconomic systems in a translational and trans-disciplinary context. Editors in Chief • Kyoichi Kijima (Bandung institute of Technology) • Hiroshi Deguchi (Chiba University of Commerce) Editorial Board • Shingo Takahashi (Waseda University) • Hajime Kita (Kyoto University) • Toshiyuki Kaneda (Nagoya Institute of Technology) • Akira Tokuyasu (Hosei University) • Koichiro Hioki (Shujitsu University) • Yuji Aruka (Chuo University) • Kenneth Bausch (Institute for 21st Century Agoras) • Jim Spohrer (IBM Almaden Research Center) • Wolfgang Hofkirchner (Vienna University of Technology) • John Pourdehnad (University of Pennsylvania) • Mike C. Jackson (University of Hull) • Gary S. Metcalf (InterConnections, LLC) • Marja Toivonen (VTT Technical Research Centre of Finland) • Sachihiko Harashina (Chiba University of Commerce) • Keiko Yamaki (Shujitsu University)

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Susu Nousala • Gary Metcalf • David Ing Editors Industry 4.0 to Industry 5.0 Explorations in the Transition from a  Techno-economic to a Socio-technical Future

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ISSN 2197-8832 ISSN 2197-8840 (electronic) Translational Systems Sciences ISBN 978-981-99-9729-9 ISBN 978-981-99-9730-5 (eBook) https://doi.org/10.1007/978-981-99-9730-5 This work was supported by Kaunas University of Technology © The Editor(s) (if applicable) and The Author(s) 2024. This book is an open access publication. Open Access This book is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made. The images or other third party material in this book are included in the book's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the book's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore Paper in this product is recyclable. Editors Susu Nousala Kaunas University of Technology (KTU) Kaunas, Lithuania David Ing Creative Systemic Research Platform Inst Toronto, ON, Canada Gary Metcalf InterConnections, LLC, Ashland, KY, USA Editors-in-Chief Kyoichi Kijima Hiroshi Deguchi

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vii Foreword As with any nonfiction work, especially in technology, three questions arise: Why this topic? Why this book? And, why this particular author or team? Why Industry 5.0? This in turn poses multiple questions: What is Industry 5.0? Why does this qualify as a major transition? And how will it differ from previous generations? Industry 5.0 is a major European Union (EU) designation for both an economic transition and an effort to refocus industry, research, and the economy from an industrial paradigm that almost exclusively prioritizes shareholder value and return on investment over human-centered stakeholder value, respect for individual rights, and sustainability for the environment and ecology, society and the workforce, and for even the enterprise itself. The terminology has been adapted more widely and largely corresponds to the earlier concept of Fifth-Generation Industry, and an online search for Industry 5.0 will reveal that, partially because of that resonance, the concept is being considered seriously across the industrialized world, and inter- acting with environmental and social initiatives in other nations as well. While one could argue that part of the motivation for the designation is a combination of a fascination with quantization and labeling, and part a bit of present-ism that makes features of our era at least as important as any developments in the past, we argue that there are good reasons for distinguishing this transition. The definitions of the earlier generations and the major transitions are hardly universal. There is fairly universal agreement that Industry 1.0 begins in the eigh- teenth century, largely in Britain, with the transition from artisan homecraft and shopcraft to factories, with mechanization, standardization of work patterns and schedules, and early commercial and industrial networks. There is also general agreement that Industry 2.0 begins with steam power, the railroad and the telegraph, and the concomitant networks for transportation and communication. From there, timelines diverge. One approach emphasizes the technological framework for

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viii transportation, communication, production, and interaction, in which Industry 3.0 arises between the late nineteenth and early twentieth century with steel and elec- tricity, or with the automobile, oil, and mass production, and Industry 4.0 arises with the Computer Age. Another looks at the focus of industrialization and the transmission of informa- tion, and begins Industry 3.0 only with the widespread use of the computer, around 1965, followed by Industry 4.0 around the start of current century, with the spread of e-commerce, cyberphysical systems, the Internet of Things, and cognitive computing. Other views exist, and it should be clear that one could easily split or merge eras. For example, why not begin a new era in the middle of Industry 1.0, with the devel- opment of standardized and replaceable parts and of the tool chain—the increased manufacture of parts and tools for building the machines themselves? And from this perspective, what makes it important to say this is a transition to Industry 5.0? In the industrial focus view, and simplifying a great deal, Industry 1.0 aims at producing materials such as textiles and industrial goods and devices such as rail- road tracks and boilers, with some production of finished consumer goods; Industry 2.0 expands both industrial and consumer goods production, and later the initial industrialization of financial services, and of agriculture and food processing. Industry 3.0, with the computer, industrializes computation and the management of data, and sees increasing internationalization, and Industry 4.0, the industrialization of service and of knowledge. From a purely industrial and commercial perspective, the current era is distinguished by the “industrialization of the consumer.” Throughout these eras, particularly from the middle of the twentieth century on, and especially in the computer era, academic, scientific, and even artistic creations and inventions become adapted for broader purposes, then commercialized and industri- alized, and turned into profit centers, placing constraints on their benefits, often to the detriment of workers and society, and frequently with undesirable environmen- tal effects. Industry 5.0 then arises as a reaction to this, combined with other factors. One is the ethical and social judgment that the economic and philosophical basis of Industry 4.0—the Chicago School and extreme economic libertarianism—has overshot in prioritizing and almost exalting short- or medium-term return on investment, the role and value of senior management, and the importance of shareholder value—not only wealth but preferences and even whims. The prioritization of shareholder interest is above and almost to the exclusion of the interests of other stakeholders, the health and prosperity of the society in which it is embedded, and the resilience and sustainability of the enterprise itself—as evi- denced, for example, by the large number of hostile takeovers and destructive merg- ers, and the prevalence of short-sighted stock buybacks over maintenance, retooling, and standards implementation, or the health, safety, and well-being of their workers, or in fact their potential for career growth and increased value to the organization. While the overall effect of industrialization and technology has—modulo long-term environmental consequences—improved the life of the average human, allowing medical progress and longer lives and a better standard of living, some would argue Foreword

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ix that continued improvement is being endangered by economic and political factors, partly brought about by the self-centeredness justified by this prioritization. A second is the challenges raised by technological developments, particularly artificial intelligence (AI) and business analytics, which can and do compromise privacy and autonomy, and create bias and misinformation. This also combines with ever-increasing computer, network, and algorithm sophistication, together with per- vasive social media and the Internet of Things to support government and commer- cial tracking of individuals, and their preferences, habits, and behaviors. The magnitude and perceived severity of these growing problems is giving rise to initia- tives to monitor, regulate, and guide the development of AI, seemingly announced almost weekly by governments and professional organizations across the world in the second half of 2023, although balanced by at least equally frequent announce- ments of AI success in solving “wicked” problems, such as protein folding, or opti- mizing the process or the solution of such problems. A third is the challenges to societal institutions, the environment and ecology, and individuals by climate change, the Sixth Great Extinction, and other human- induced ongoing planetary challenges, as well as additional AI risks, from cyber- physical systems, automation, generative AI such as Chat GPT, and predictive AI applications, alone or integrated in various combinations into “smart applications.” Finally, Industry 5.0 seeks to address, at least in the economic sphere, problems of diversity, which have multiple roots in social mores and practices, in political and economic colonialization, and in situations that were problematic but now can be treated through medical or other interventions. As such, it is connected with corpo- rate and government ESG (environmental, social, and corporate governance) and DEI (diversity, equity, and inclusion) initiatives. While this is not the first social movement protesting working conditions and the gross accumulation of wealth— one can look to the Luddites of the eighteenth century and the Progressive move- ment in the US in the early twentieth century—the Industry 5.0 and related initiatives arguably have a larger footprint and confront more systemic and not easily resolved problems. Further, it is perhaps the first that (at least as broadly understood) is global, intended for and potentially affecting both the fully industrialized and devel- oping world. Thus, although from a technical perspective Industry 5.0 might be better labeled as a sub-era of Industry 4.0, the social and economic context and the support of the EU (together with at least partial support from other governments and professional organizations across much of the planet) suggest that this should in fact be identified as a major transition. Why This Book? The two main arguments for this book are its interdisciplinary perspective and its long-range if tentative view. Foreword

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x The chapters in this book offer multiple perspectives on the potential benefits, opportunities, challenges, and risks associated with the transition to Industry 5.0. They present, both individually and as a collection, an interdisciplinary view, interweaving ethics, a historical perspective, social factors, environment and ecol- ogy, and current threats, including climate change and the impacts of AI, identify- ing problems and suggesting solutions or at least possible paths forward. Beyond just the (much-needed) human-centric view, there is a focus on the interaction of Industry 5.0 with the world, and possible feedforward and feedback loops. There is a recognition that, while prioritizing human rights and dignity, both the health of the underlying economy and industrial base (and of the well-meaning and well- run enterprises implementing changes), on the one hand, and the health of the planet and the environment have to be respected. Further, it is understood that these factors are interwoven, and that major changes in any one need to be pre- ceded by consideration of the effects on the other two, and subsequent interactions. Moreover, for all three concerns—human, economic, and environmental, the book takes a long-term view, emphasizing sustainability and resilience. In systems engineering terms, design and implementation have to be preceded by and then accompanied by ongoing requirements and risk analysis, and careful and timely assessment to identify problems and support proper evolution. There is also an acknowledgment of the need to deal with different time scales. Some problems may become critical within a few years’ span; others may not get to that point for genera- tions—but may be intractable if not addressed or anticipated immediately. The long-term view, however, does not mean that the book aims to predict the future of the world, or of Industry 5.0, or of its major components and challenges, or that the authors and editors are foolish enough to think they can do so. Almost certainly, for example, no one can predict with any accuracy what AI will look like even by the end of next year, or what it will be doing, or what new challenges it will bring. Also, while the challenges of climate change are largely understood, predict- ing the rate of change or the sequence of problematic events is difficult at best. These difficulties are also evident through a gamut of stresses and relief, including political challenges to the world order, epidemics on the one hand and medical developments such as recent vaccines for malaria and cholera on the other, and totally unexpected developments such as cryptocurrency. For that reason, the rem- edies suggested in the book should be viewed not as long-term prescriptions, but as recommendations to be revisited and revised over time. Rather, the book intends to present a snapshot of the issues, challenges, and pos- sible paths forward as of late 2023, identifying the challenges and opportunities visible at this date, and steps that may work toward addressing the one and realizing the other. It would be wonderful if surprising if its projections were to prove precise and accurate, but a clear understanding of the present, and its (approximate) current position and velocity in the economic and social problem space, may be useful for those taking the next snapshot and seeking course correction. Foreword

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xi Why This Team? The project that resulted (if hopefully not culminated) in this book began with dis- cussions among the Kaunas University of Technology (KTU) research team, who generously and foresightedly welcomed interaction and contributions from other parts of the world, giving the result an international and fully interdisciplinary flavor and breadth of perspective. Moreover, the team includes practitioners as well as academics, and has chosen to offer a less theoretical snapshot, closer to the present, although the concepts of Industry 5.0, combined with systems science and a cybernetic view, guide the evolu- tion of the text. It also recognizes that good science (and good economics) takes data, that data takes time to collect or generate—especially when examining long- term trends and concerns. Still, in the meantime, it is useful to provide as clear a picture of the situation as can be created, in part to improve the utility of that data once collected. Not surprisingly for a deliberately interdisciplinary and multi-perspective vol- ume, the editors and chapter authors have widely diverse backgrounds. Most are highly interdisciplinary themselves, having published on a wide variety of topics. Their collective expertise includes technology and computer science, engineering, ethics, philosophy of science, sustainability studies, interdisciplinary studies, edu- cation and pedagogy, social science, linguistics, the arts, and more. The editors and authors also have a long history of interaction and collaboration, with regular formal and informal meetings, joint workshops and presentations, coauthorship, serving on thesis committees for or otherwise assisting each other’s students, and more. Many are members of the Creative Systemics Research Platform Institute (CSRP), as am I. CSRP has served as a virtual meeting space and intellec- tual clearing house for these discussions and others. From personal experience, while these collaborations have served to make each aware of the others’ work, and have in many cases broadened and deepened individual perspectives and back- ground, each of the team retains a highly individual perception and articulation of intellectual issues, and a highly individual style of discourse and communication, as can be seen in the chapters of this book. About the Author Thomas J. Marlowe is Professor Emeritus of Mathematics and Computer Science at Seton Hall, where he taught in both fields for over 40 years. He holds a Ph.D. from Rutgers University in each discipline. His research has covered areas including but not limited to coalgebras, programming languages and compiler optimizations, pro- gramming language aspects of real-time and embedded systems, software Foreword

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xii engineering and databases, computer science pedagogy including ethical consider- ations, and interdisciplinary studies. Email: thomas.marlowe@shu.edu Department of Mathematics and Computer Science Thomas J. Marlowe Seton Hall University, South Orange, NJ, USA Foreword

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xiii Preface Overview At the core of this book is the output of the IN4ACT research project funded by a Horizon 2020 grant from the European Union. The project was centered at Kauno Technologijos Universitetas (KTU), the Kaunas University of Technology School of Economics and Business, in Lithuania. On a four-year timeline from 2020, research was chartered to study the impacts of Industry 4.0, as the industrial sector in Europe was being redefined by the adoption of new digital technologies, new materials, and new processes. As Industry 5.0 became better defined, the research- ers shifted to the broader scope of ecological sustainability, human centricity, and resilience to shocks after experiencing the COVID-19 pandemic. Nearing finaliza- tion of the study in 2023, the unanticipated rapid rise of Generative Artificial Intelligence raised new questions beyond the original charter of 2020. In late spring 2023, the IN4ACT researchers convened an in-person symposium, inviting international scholars to broaden perspectives on unfolding events. An ambitious timetable to deliver manuscripts within the calendar year was set. A frame of immediacy compacted the views of (a) what we have learned, (b) what we know today, and (c) what we see on the imminent future. As the collective work began to take shape, the contributors expanded to cover three continents. Online instant messaging and email brought together converging and diverging perspectives. Industrial and societal trends are being pushed toward concerns about sustain- ability, and human well-being. As the digitalization of Industry 4.0 has matured, the transitions toward sustainability, human-centricity, and resilience of Industry 5.0 continue to evolve. The meaning of human-centric was drawn into sharper focus with concerns on the potential benefits and misuses of Generative AI.  The final positioning of this book grapples with the dilemma of the scholarly reporting on findings from four years of research, and well-informed insights into expectations for 2024.

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xiv About the Chapters and Their Crossovers This series of chapters reflects a milestone for a multidisciplinary team of research- ers with IN4ACT as the nexus. The knowledge accumulated spans years of interac- tion, both within the core team and across their extended networks. Those core relationships established a foundation for inviting like-minded contributors into a cohesive team of writers. Each chapter stands on its own, with autonomous author(s) coming from a variety of disciplines, cultures, and experiences. A common thread through the chapters is concern for human-centricity, as an industrial and societal transition unfolds. In the subtle distinctions made by each researcher, the astute reader may intuit entering a dialogue, as ongoing, and unfinished. Chapter 1, written by a leading systems researcher, provides an historic and theo- retical context on the development of technologies, from the first Industrial Revolution in the eighteenth century to the present day. The trail from invention of steam engines to Artificial Intelligence (AI) is not linear, but AI did not develop by accident, nor without precedent. Many of the cultural drivers of industry (efficiency and productivity) and of media (corporate-funded advertising and influence) con- tinue to shape technologies and their applications. Whether the same drivers will continue to shape the technologies of the future is an open question. Chapter 2 is coauthored by three of the lead researchers on the IN4ACT team. Drawing from findings and publications over four years of study, they offer views of iterations and layers of the transition from Industry 4.0 to 5.0. At varying scales, the benefits and impacts considered should include economic, environmental, tech- nological, and social aspects. Applying a typology of discourses on Circular Economy, risks are surfaced on the possibilities of maintaining stability through socioeconomic and environmental transitions with human-centricity in the complex adaptive system. Two case studies of industry transitions in Europe are reviewed, as test beds of innovation. Chapter 3 reflects the perspective of two researchers focused on organization development and performance management. The emphasis on human-centricity in Industry 5.0, at minimum, requires the development of hard skills, in applying the new technologies. Beyond this recognition of hard skills, the types of soft skills that would support successful transitions to Industry 5.0 are not yet well-understood. Both workers mature in their careers, and newly trained entrants into an industry face psychological challenges, business and managerial challenges, and structural challenges. Gaining a fuller appreciation of soft skills leads to questions on defining the term complexity in human organizations, transferability across contexts, and the evaluation of behaviors. Experiences teaching emotion regulation to lab scientists and economists provide insights into potential soft skills transition challenges with Industry 5.0. Chapter 4 is contributed by a leader in the service science movement, a former research executive for IBM.  While Industry 4.0 and 5.0 agendas have largely emphasized the production side of industry with manufacturers in Europe, the breadth of stakeholders is more widely surfaced. Service system entities, at multiple Preface

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xv scales, are challenged to look beyond optimizing locally, toward investing in the global ecology of actors. Aims for AI upskilling to improve the productivity of busi- ness and nations raise concerns about the responsibility and awareness of actors in ethical use of the technology. Digital twins, as models that partially synchronize interactive capabilities, are better understood for machines than for people, organi- zations, and other service system actors. Service science is presented as an emerg- ing transdiscipline in which the ecology of entities can be better appreciated, Chapter 5 was authored by a sustainable economy researcher on the IN4ACT team, who completed his doctorate during the project. In the technological develop- ments across Industry 4.0 to 5.0, the way in which job posting has changed reflects shifts toward human centricity for employees and businesses. The evolution in abili- ties of machines is characterized as (a) Artificial Narrow Intelligence, (b) Artificial Semi-General Intelligence (ASGI), and (c) Artificial General Intelligence (AGI). Beyond routine job automation, Industry 5.0 could see ASGI encroaching on fields with creative work. As a bold experiment, the Generative AI ChatGPT technology was applied to create the initial draft of the chapter. Scholarly citation of sources is not with the current capabilities of ChatGPT, so refinement by the author was still required. Chapter 6 has been contributed by a digital technology executive exploring the combination of Human Intelligence and Artificial Intelligence. The aggregate is considered as a Hyper-Selfish Intelligence, where the drives of biological evolution could lead to Artificial General Intelligence producing a Super Intelligence. An argument is made for strong global regulation of AI to preclude human civilization from the most extreme risks. Industry 5.0 is seen as an opportunity to put social and technological development on a positive path. Chapter 7 was written by a systems researcher with a prior career in consulting and market development at IBM. The labeling of 4.0 and 5.0 is reflected in a variety of generational shifts, including Schumpeterian innovation, the Japan Science and Technology Basic Plan, the EU Industrial Research and Innovation Commission, and the World Economic Forum. Version numbering is explicated to differentiate between incremental adaptations and generational shifts. The Age of Discovery circa 1492 is portrayed in a transition from Era 0 to Era 1, with two synthetic per- spectives of Socio-Technical Systems (STS) and Socio- Ecological Systems (SES). The current era is depicted as changes in SES as service economy alongside changes in STS as a knowledge society. The next era is described with changes in SES as a polycrisis ahead of changes in STS that would constitute a generational shift. Reflections and Conclusions While most book projects overlap stages and phases on timelines of years, this par- ticular project faced the constraint of a 2023 funding deadline, compressing devel- opment into months. With that shortened horizon came the opportunity to bring the immediacy of the intriguing and influential public responses to the rapid rise of Preface

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xvi Generative AI in late 2022. These pressures of news headlines every day drove an accelerated timeline for slipstreaming considerations for AI into the book. In effect, this writing team reflexively experienced the transition from Industry 4.0 to 5.0, in a microcosm. The mandate to create a book as a static artifact captur- ing the knowledge and experiences of the team ran counter to the give-and-take style of ongoing dialogue, via synchronous online meetings punctuated by drafts and revisions of collective learning. The team agreed to cast this project as a snap- shot in time, as a milestone in 2023, comparable to a photograph in a hurricane. Recording the state of knowledge at a point in time was important, with a mindful- ness that our dialogue has not ended. Hopefully, this book will serve as a foundation for many more discussions to come, about the state of societies in the midst of dis- ruptive changes, and the possibilities for the decisions that we can make toward the better. Kaunas, Lithuania Susu Nousala Ashland, KY, USA Gary S. Metcalf Toronto, ON, Canada David Ing Preface

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xvii Acknowledgments The contributors to this book would like to acknowledge and give thanks, posthu- mously, to our colleague and team leader, Panagiotis (Takis) Damaskopoulos, Professorial Chair at Kaunas University of Technology (KTU). Takis was appointed as the Principal Investigator for IN4ACT in 2019. He guided the research team through the development of ideas for many years, resulting in the content published in this book. He will be missed. We would also like to acknowledge Professor Emeritus Thomas Marlowe for contributing the Preface, as well as his steadfast support in reviewing the chapter manuscripts and providing insights. Finally, we acknowledge that this book received funding from the European Union's Horizon 2020 research and innovation program under grant agreement No. 810318.

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xix 1 An Introduction to Industry 5.0: History, Foundations, and Futures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Gary S. Metcalf 2 The Complexity of Sustainable Innovation, Transitional Impacts of Industry 4.0 to 5.0 for Our Societies: Circular Society Exploring the Systemic Nexus of Socioeconomic Transitions . . . . . . . . . . . . . . . . 31 Manuel Morales, Susu Nousala, and Morteza Ghobakhloo 3 Coping with Industry 5.0: An Assessment of Evolving Soft Skills for the Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Ryan Armstrong and Carlos Javier Torres Vergara 4 AI Upskilling and Digital Twins: A Service Science Perspective on the Industry 4.0 to Industry 5.0 Shift . . . . . . . . . . . . . . . . . . . . . . . . 79 Jim Spohrer 5 Industry 5.0 and Artificial Semi-General Intelligence. Exploring Future Challenges and Opportunities Within Industries and Societies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Andrius Grybauskas 6 Artificial Intelligence Capabilities and Hyperselfish Intelligence, the Possible Impacts, and Why Humans Need Industry 5.0 . . . . . . . . 113 Rohan Fernando 7 Incremental Adaptation or Generational Shift? . . . . . . . . . . . . . . . . . 151 David Ing Contents

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xxi About the Editors Susu  Nousala is a Project Researcher with the IN4ACT project at Kauno Technologijos Universitetas (KTU) School of Economics and Business. She is Founder and Research Director of the Creative Systemic Research Platform (CSRP) Institute centered in Ticino, Switzerland. Recent appointments have included: Professor at College of Design and Innovation at Tongji University (Shanghai); Chitian Scholar Professor at Wuhan University of Technology; and Senior Research Fellow at Aalto University (Helsinki). Her time is segmented across offices in Espoo, Finland; Móra d'Ebre, Spain; and Melbourne, Australia. Email: s.nousala@ gmail.com Gary S. Metcalf is a principal of InterConnections LLC, coaching executive lead- ers and consulting on human resources. He serves as Treasurer of the International Society for the Systems Sciences with prior experience as a past-president, and was previously President of the International Federation for Systems Research. Book series that he has edited include Translational System Sciences (Springer Japan) and IFSR Systems Sciences and Systems Engineering (Springer USA). Appointments have included Professor of Leadership and Management at Saybrook University and Distinguished Lecturer at Sullivan University. He works in Ashland, Kentucky, and Atlanta, Georgia. Email: gmetcalf@InterConnectionsLLC.com David Ing is a Research Fellow with Creative Systemic Research Platform (CSRP) Institute, as well as a Research Fellow with Code for Canada. He serves as a Trustee for the International Society for the Systems Sciences, with a prior role as past- president. A previous 28-year career at IBM Canada included assignments in man- agement consulting, headquarters planning, and executive education. Previous book projects include Open Innovation Learning and The Marketing Information Revolution. He resides in Toronto, Canada. Email: coevolving@gmail.com

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1© The Author(s) 2024 S. Nousala et al. (eds.), Industry 4.0 to Industry 5.0, Translational Systems Sciences 41, https://doi.org/10.1007/978-981-99-9730-5_1 Chapter 1 An Introduction to Industry 5.0: History, Foundations, and Futures Gary S. Metcalf Abstract The meaning of Industry 5.0 continues to evolve. It originally implied a reaction to the excesses of technologies in Industry 4.0, the era of cyber-physical systems and the Internet-of-Things. In the short time since the term was first used, artificial intelligence has taken over public attention, bringing new questions and new meanings. Many of the influences shaping our technologies, however, date back to the first Industrial Revolution: efficiency, profitability, etc. Will those same influences continue to shape future technological developments, or is this an era in which humans can choose to make new choices? Keywords Industry 4.0 · Industry 5.0 · Artificial intelligence · Transhumanism · Post humanism Humans have evolved with tools since the dawn of our species; from sharpened stones and fire to the computer systems of today. Each new tool has been an inven- tion, but it has also been part of a lineage of change, not entirely different from biological evolution. A sharpened stone attached to a sturdy stick, made a much more effective axe. A smaller sharpened stone attached to a longer stick created a spear, and so on. For millennia, tools enhanced our physical capabilities. The domestication of animals for work, such as oxen and horses, supplemented strength and endurance, as did wheels, levers, and pulleys. Engines provided another leap in magnitude, from tiny electric motors to rocket and jet engines. The development of language by humans represented a different kind of advance- ment; a tool for communicating (Rushkoff, 2019). Experiences could be shared and collected into a communal system of knowledge and memory. When memories and ideas could be shared in written form, they were more accurate and lasted longer. Mathematics was arguably a next advancement as a language for description, as well as calculation. G. S. Metcalf (*) InterConnections, LLC, Ashland, KY, USA e-mail: gmetcalf@InterConnectionsLLC.com