IE Sci-Tech and UC Berkeley ME Department Partner to Advance Digital-Twin Simulation for Financial Systems
The IE School of Science & Technology (IE Sci-Tech) and the Mechanical Engineering Department of the University of California, Berkeley, are pleased to announce a strategic research collaboration under the IEX Research Xcelerator, aimed at advancing digital-twin modeling of global financial systems. The initiative supports IE School of Science & Technology’s mission to drive interdisciplinary research with tangible real-world impact.
Digital twins — virtual replicas of physical systems — can simulate global financial dynamics in real time or faster. By testing “what if” scenarios in a virtual environment, they help anticipate system failures, identify investment opportunities, and reduce real-world risk. Recent advances in computational power have made these simulations more accurate and scalable.
The collaboration, led by Tarek Zohdi https://me.berkeley.edu/people/tarek-i-zohdi/, Associate Dean for Research in the College of Engineering and Professor of Mechanical Engineering and Ikhlaq Sidhu, Dean of IE School of Science & Technology, Professor, and MEFIC Chair on AI & Data-Driven Financial Investments, will focus on building high-speed, machine-learning-enabled simulation tools. These will combine physical modeling, AI, and design optimization to explore the consequences of financial policy decisions across complex systems. Zohdi’s work spans digital twin technologies, cyber-physical systems, with applications in advanced manufacturing, drone technologies, finance, precision agriculture, energy management systems and global health systems. Supported through IEX, the partnership will explore research themes including:
- Global financial systems modeling
- Financial contagion modeling
- Digitization and digital trading of physical assets
- Real-time liquidity routing
- Decentralized treasury operations
Professor Zohdi said: “Digital-twin technologies give us the ability to anticipate, not just react. By replicating complex systems virtually, we can test policy decisions, design resilient infrastructure, and reduce exposure to systemic risk – before adverse consequences materialize. Collaborating with IE through the IEX initiative offers a rare opportunity to bring this work into a global context in order to connect advanced modeling with real, measurable effect.”
Professor Zohdi will also join the new IEX Think Tank, an international faculty group dedicated to accelerating innovation in areas like AI, sustainability, and digital systems. In parallel, the collaboration will produce targeted, insight-driven white papers for policymakers, lawmakers and industry leaders, offering early perspectives on emerging global challenges such as:
- Digital-twins-the future of man-machine co-habitation
- Data Centers-where should they be?
- Advanced drone manufacturing-robust drone ecosystems for industrialized economies
- Precision Agriculture-feeding the world through healthy technology
- Agrophotovoltaics-power generation and agriculture in harmony
- The hydrogen economy-a reality check
- The next pandemic-not “if” but “when” and strategic planning
- The satellite constellations-the future of telecommunications?
- Wildfires-strategies for mitigation and control in a hotter world, etc.
Dean Ikhlaq Sidhu said, “We look forward to working with Professor Zohdi. His work aligns with our vision to advance theoretical research while developing tools that directly and positively impact industry and society.”
This collaboration reflects IE University’s commitment to research with pressing real-world relevance. Through IEX, the partnership not only seeks to accelerate financial and technological innovation, but also serves as a source of independent, actionable insight for public and private sector leaders navigating new investment landscapes.
About the Mechanical Engineering at UC Berkeley: Berkeley Mechanical Engineering https://me.berkeley.edu/ is one of the top ranked public mechanical engineering programs in the United States and is consistently ranked as one of the top mechanical engineering departments in the world. Our teaching and research laboratories are among the most active, innovative and productive worldwide. Our faculty and students come from highly diverse backgrounds and represent the best and brightest from all over the world.
About IE School of Science & Technology: As a forward-thinking polytechnic institution, IE School of Science & Technology (IE Sci-Tech) integrates deep technical expertise with a strategic business perspective. Unlike traditional tech schools focused solely on scientific discovery, IE Sci-Tech builds on IE University’s entrepreneurial heritage, approaching innovation through a technological and business lens.