How AI Changed a 150-Year-Old Industrial Manufacturing Company! | CXOTalk #901

How do you turn a 150-year-old industrial giant into an agile, AI-first organization?

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For Hexion CEO Michael Lefenfeld, the answer isn't just about technology, but about culture, safety, and rethinking value. In episode 901 of CXOTalk, Lefenfeld details his strategy for integrating AI across every level of a billion-dollar manufacturing enterprise, from the R&D lab to the factory floor.

Michael Krigsman and Michael Lefenfeld discuss the practical realities of moving beyond "pilot purgatory." They dive into how to manage workforce anxiety (the "carrot vs. stick" approach), leverage Private Equity for long-term innovation, and maintain strict safety guardrails while moving fast.

If you are a leader navigating the complexities of digital transformation, this interview offers a concrete roadmap for driving growth without sacrificing your company's heritage.

📋 DISCUSSION TOPICS:

-- The AI-First Culture: Why Hexion incentivizes AI adoption rather than forcing it.

-- Workforce Strategy: How to upskill employees and ensure AI is a "partner," not a "job taker."

-- Operational Excellence: Using AI to achieve the "Golden Batch"—reducing waste and energy usage.

-- The Private Equity Advantage: How ownership structure impacts long-term tech investment.

-- Strategic Partnerships: Using data to deepen customer intimacy and escape the commodity trap.

⏱️ TIMESTAMPS

00:00 🏭 Introduction to Hexion and Its Role in Everyday Life

01:28 🤖 Hexion's Integration of AI Across Operations

03:34 🚀 AI as a Tool for Growth and Empowerment at Hexion

13:47 🤖 Leadership Philosophy and AI Integration at Hexion

16:44 🛡️ AI's Role in Safety and Decision-Making

20:25 ⚙️ AI-Driven Efficiency and Learning in Manufacturing

26:54 💉 Personal Experience with Diabetes and Continuous Glucose Monitoring

28:30 🤖 AI's Role in Customer Service and Business Operations

32:53 🌍 AI Learning, Ecosystem Collaboration, and Organizational Growth

38:32 🤖 Using AI to Enhance Manufacturing and Investment Decisions

40:04 🏢 Hexion's AI-First Strategy and Customer-Centric Approach

46:32 💼 Private Equity's Role in AI Investment and Long-Term Growth

50:20 🧪 Optimizing Products with Data and Batch Chemistry

51:44 🤖 AI's Impact on Business Models and Lessons Learned

53:30 🚀 Advice for AI Implementation and Closing Remarks

🎯 FEATURED GUEST

Michael Lefenfeld is the CEO of Hexion Inc. and a serial entrepreneur with a passion for revitalizing legacy industries.

-- He holds 100+ patents and was named a World Economic Forum Young Global Leader.

-- Michael specializes in bridging the gap between deep science (chemistry/physics) and practical business strategy (AI/profitability).

-- Previously served as CEO of Cyanco and SiGNa Chemistry.

📚 RESOURCES

🔷 Show notes:https://www.cxotalk.com/episode/ai-first-rewiring-a-150-year-old-industrial-manufacturer

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🎙️ ABOUT CXOTALK

CXOTalk features unfiltered conversations with C-suite executives from major companies about AI, digital transformation, and business strategy. Hosted by Michael Krigsman. Episode 901 | Recorded November 21, 2025