Impactive AI Launches Joint Demand Forecasting R&D Project with Germany's Fraunhofer

Utilizing Digital Twin-Based Synthetic Data:
Joint R&D on AI Demand Forecasting in Manufacturing

Expanding R&D to 1.4 Billion Won Based on Pilot Success,
Accelerating Entry into the European Manufacturing Market

Impactive AI

Impactive AI, a company specializing in AI-based demand forecasting (CEO: Jeong Doohee, hereafter referred to as Impactive AI), announced on March 11 that it has launched a joint research and development project with Germany's Fraunhofer Institute for Machine Tools and Forming Technology (Fraunhofer IWU), the largest applied science research institute in Europe. The project aims to advance digital twin-based synthetic data generation and demand forecasting technologies.

This collaboration goes beyond a simple technology exchange; it is a research and development project valued at approximately 1.4 billion won, focusing on the joint development of AI-based predictive technologies that can be applied in real manufacturing environments. By combining Fraunhofer's digital twin simulator-based synthetic time-series data generation technology with Impactive AI's advanced time-series forecasting models, the goal is to enhance the precision of quality and yield predictions in manufacturing processes and expand these capabilities into an end-to-end supply chain management (SCM) optimization solution linked to demand forecasting.

In the manufacturing industry, data is often limited or imbalanced, which presents challenges for AI model training. This project is focused on overcoming these limitations by utilizing digital twin-based virtual manufacturing environments, thereby establishing a new predictive technology framework that expands the data environment available for AI learning. Last year, both parties validated the feasibility of the technology through a small-scale pilot test, and, based on its successful results, have now expanded into a full-scale joint research and development phase.

Fraunhofer is the largest applied science research institution in Europe and has driven industrial technology innovation through collaborations with a variety of global manufacturing companies. This partnership is especially significant because Fraunhofer has directly verified Impactive AI's AI-based predictive technologies and selected the company as a technology partner.

Through this collaboration, Impactive AI expects to expand its technological cooperation with the European manufacturing research ecosystem and validate the applicability of its AI-based demand forecasting and SCM optimization solutions for global manufacturing companies. In particular, the combination of digital twin-based synthetic data and advanced predictive models holds the potential to extend into various manufacturing AI fields such as smart factories, supply chain optimization, and intelligent inventory management.

Impactive AI supports corporate decision-making by forecasting product demand and raw material prices through its AI demand forecasting solution, Deepflow. Deepflow is characterized by its ability to precisely predict demand and price fluctuations by integrating a wide range of internal and external data using advanced machine learning and deep learning models.

Impactive AI has also continued research to improve prediction accuracy by developing methodologies such as its 'Black Swan Prediction Methodology,' which quantifies unpredictable events—including exchange rate fluctuations, geopolitical risks, and pandemics—as quantitative variables using large language models (LLMs) and incorporates them into its forecasting models. As a result, the company has enhanced the stability and effectiveness of its predictive models and has filed 72 patents related to AI-based predictive technologies to date.

An Impactive AI representative stated, "Fraunhofer is a research institution with the highest technological standards and verification systems in the European manufacturing technology field. Through this collaboration, we expect that manufacturing AI, which has traditionally been used mainly in supply chain management, can be expanded to the manufacturing process level, thereby improving business productivity and operational efficiency." The representative added, "Our joint research with Fraunhofer will serve as an important foundation not just for technology validation but also for entering the European manufacturing market."

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