ArcelorMittal: AI to transform the steel sector

ArcelorMittal is advancing innovation with more than 300 researchers in Spain and €250 million in R&D investment globally.

Little or nothing was said about artificial intelligence in 2004, when ArcelorMittal (then just Arcelor) decided to begin researching this emerging technology with a group of five people in Asturias.

"Back then, the term AI wasn't used as much, but rather more about data mining and machine learning. No one wanted to work with us, so we were knocking on doors asking for data. We were almost more salespeople than researchers, but little by little we were creating valuable examples where people saw what we could do with these models, and the situation changed radically. We went from actively seeking data and projects to having high demand," explains Tatiana Manso, head of Operations at ArcelorMittal Global R&D Spain.

Manso was one of five researchers who began working with AI at the company in 2004, until 2008, when all this activity was consolidated under the Global R&D Asturias center, with the goal of being a global hub offering services in digitalization, AI, the environment, and sustainability.

After several years of promoting innovation from three locations in Spain: Asturias, the Basque Country, and Madrid, in 2022 ArcelorMittal decided to merge all its R&D centers in Spain under the single organization of Global R&D Spain.

"The merger in 2022 aimed to unify the core competencies in digitalization, decarbonization, and process optimization that were dispersed across the different centers. Two or almost three years later, the barriers between us have practically disappeared, allowing us to become a single center that works together in these three areas," says Manso, who that year became the company's head of digitalization and R&D in Spain.

The new Spanish center has positioned itself as one of ArcelorMittal's eleven R&D hubs worldwide, becoming the second largest, with more than 300 researchers. Its main focus is digitalization and artificial intelligence, with the center having the greatest number of expertise in these fields and 70 researchers dedicated solely to them. It is also the center with the most expertise and knowledge in decarbonization and sustainability.

Despite being considered an old industry, the work done at the Spanish innovation center is fundamental to today's steel sector. "Steel is a highly technological material. It's nothing like it was 20 years ago. It's constantly reinventing itself and evolving. Furthermore, it's one of the most recycled elements worldwide; more than 90% of the steel produced annually is recycled," says Tatiana Manso.

ArcelorMittal is using the AI ​​developed at its Spanish R&D center in many of the company's strategic decisions, such as major investments, but it also makes use of bio-inspired algorithms, which replicate natural behavior. One example is the ant colony algorithm , which replicates how ants find the shortest path to food in an organized manner. Thanks to collaboration with professors at the Free University of Brussels, this behavior has been transformed into a mathematical model for scheduling and managing production at the company's facilities around the world.

The company is also using AI to develop new materials and sort waste, using videos and photos to classify "good" and "bad" scrap. In the case of generative AI, in addition to its use in corporate teams, it is also being used in patent analysis and to design parts for 3D printing.

ArcelorMittal's technological commitment to Spain, with a particular focus on Asturias, has made the region attractive to researchers and scientists from around the world. "After the pandemic, we have experienced significant growth in talent, with more than 40 hires in the last two years and much greater diversity, with nearly 10 nationalities," explains Manso.

The Global R&D Spain center also utilizes external talent in a variety of ways, collaborating with universities and research centers, as well as startups and companies of all kinds. In total, they have collaborated with 1,500 external partners over the last five years.

The company, which invests almost $300 million annually in innovation , also boasts of being very active in seeking additional funding, both at the European, regional, and national levels, so "this additional funding is not included in the $300 million, which means that the total R&D investment figure would increase. An example of this was the start of research into 3D printing, which was made possible thanks to funding obtained from the regional government," explains the executive.