In the era of Industry 4.0, Smart Retrofit emerges as a pivotal strategy for enhancing industrial infrastructure efficiency, competitiveness, and sustainability. The presented Smart Retrofit solution developed for the AIDEAS project involves integrating hardware, software, and communication innovations into existing machinery to extend their lifespan and improve performance. The modular approach facilitates data collection, analysis, and performance optimization, enhancing industrial processes’ overall agility, sustainability, and resilience. Particularly relevant for Small and Medium Enterprises, this solution offers a cost-effective alternative to purchasing new equipment, allowing them to leverage their existing resources, retain invaluable internal expertise, and smoothly transition into the Industry 4.0 landscape. Key components of Smart Retrofit action encompass the implementation of Artificial Intelligence algorithms for data analysis, the incorporation of new sensors and technologies for data acquisition, and the development of user-friendly interfaces and security protocols.