Guide to artificial intelligence (AI) in manufacturing

Artificial intelligence (AI) in manufacturing is already playing a vital role in helping manufacturers operate efficiently and make more insightful decisions – analyzing data, coordinating workflows, and automating repetitive tasks while creating safer operating environments.

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The rapid adoption of AI in manufacturing is hardly surprising given the unprecedented levels of competition, global disruption, worker shortages, and market shifts faced by manufacturers today. Modern AI-powered manufacturing solutions offer a means not only to address these challenges but also to provide a competitive advantage and drive growth during unprecedented times. Manufacturing offers exciting opportunities to leverage AI, whether by harnessing large amounts of data from sensors or connecting disparate systems, platforms, and machines. This helps reduce costs through more efficient, automated, and optimized processes, enabling manufacturers to operate at their peak.

What is AI in manufacturing?

AI in manufacturing refers to the use of advanced technologies like machine learning, generative AI, robotic process automation (RPA), and agentic AI to support the full operational lifecycle – from sales and order processing, to product design and supply chain planning, to production and workforce management. AI technology can quickly diagnose issues, analyze data, predict outcomes, and automate tasks and workflows, helping you boost performance and speed while overcoming common problems such as equipment failures, supply chain disruptions, or quality issues.

According to a survey by the National Association of Manufacturers, the top reasons manufacturing companies are turning to AI include reducing costs and boosting efficiency (72%), improving operational visibility and responsiveness (51%), and improving process optimization and control (41%). Supply chain management is another top goal, with 21% already using AI and 61% planning to apply it to their supply chains.

The importance of high-quality data for manufacturing AI models

AI and machine learning systems only perform as well as the data they are trained on. These models learn by identifying patterns across enormous volumes of information – both historical and real time. If that data is incomplete, inconsistent, or biased, then unsurprisingly, the results you get from your AI tools are not going to be as good or accurate as they could be – no matter how advanced the algorithms are.

For manufacturers, this challenge is even more complex. Production metrics, sensor data, quality records, maintenance logs, and operator notes are often scattered across disconnected systems or squirreled away in silos. If those inputs aren’t captured consistently and tied to real shop-floor conditions, AI systems end up learning from fragments rather than from the full operational picture.

This is why strong data governance should never be an afterthought. It is the best way to ensure that your raw business data gets turned into something AI can actually use. Clear definitions, standardized structures, and domain context ensure models learn from trusted signals instead of noise. When you start with a good data foundation, AI can support faster, more confident decisions.

AI technology for manufacturing

There are a number of technologies that fall under the AI umbrella, and they all work together to help you move faster and operate more sustainably.

Machine learning (ML)

Machine learning models analyze large volumes of manufacturing data to detect patterns and anomalies. They also monitor metrics like cycle times, scrap rates, and output levels, and then flag potential issues early.

Example: An ML model learns which combinations of machine settings consistently produce lower scrap on a specific product. It can then flag when current runs start to drift from that pattern.

Predictive analytics

Predictive analytics and time-series forecasting use AI and machine learning techniques to analyze historical and sensor data. This leads to more accurate predictions, such as when a piece of machinery may fail.

Example: Time-series forecasting predicts the end-of-cycle completion time for a batch process, such as curing or baking. This means downstream packaging and dock schedules don’t stack up.

Computer vision

Using deep learning, computer vision allows for the visual inspection of products using images and video from production lines. It can detect defects and other quality issues faster than is humanly possible.

Example: A vision system automatically reads legacy dial gauges and panel indicator lights on older equipment. Those visual readings are then turned into digital process data without replacing the controls.

Internet of Things (IoT)

An IoT network connects all your equipment, sensors, and systems. AI can then analyze all this operational data in real time, revealing critical information about machine health, environmental factors, and more.

Example: Connected torque tools and calibration stations automatically log tool usage and calibration status across shifts. This ensures that out-of-cal tools don’t get a chance to quietly slip back onto the line.

Natural language processing (NLP)

NLP can rapidly summarize unstructured, text-based records and documentation – such as maintenance logs, notes, incident reports, and manuals– and deliver output in understandable, natural language.

Example: NLP scans months of shift notes and incident reports and summarizes the most common recurring issues over time. They can then be grouped by line, product family, and root-cause theme.

Generative AI

Generative AI helps teams make faster decisions. Through digital assistants embedded into everyday workflows, GenAI can answer questions, summarize work instructions, share personalized insights, and much more.

Example: Generative AI turns an engineering change order and BOM update into a first-draft, step-by-step work instruction – pulling torque values, adhesives, and safety notes from the right spec sheets.

GenAI in manufacturing

Agentic AI

Agentic AI systems not only interpret data, but they can also act on it according to defined goals and constraints – coordinating actions across the business while continuously adjusting to new information.

Example: When energy usage spikes past a threshold, an agent proposes a coordinated set of actions, such as shifting high-load runs off-peak or adjusting non-critical HVAC setpoints, based on predefined constraints.

Agentic AI in manufacturing

AI-driven industrial automation

Artificial intelligence technology allows robots to recognize objects and adjust their paths in real time, supporting autonomous systems that can self-tune, learn from data, and modify machine settings as needed.

Example: AI-powered robots adjust pick-and-place paths in real time when part orientation varies slightly on a conveyor – preventing line stoppages without manual reprogramming.

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7 key benefits of AI in manufacturing

Some of the main advantages of AI for manufacturing include:

Efficiency through faster data analysis, automated workflows and processes, and predictive insights.
Cost savings realized from tighter quality control, less waste, and a more productive workforce.
Safer operations using predictive models and continuous monitoring to detect potential risks earlier.
Greater innovation by running simulations and exploring new ways to customize products and streamline processes.
Improved product quality with automated inspections and AI-driven analysis to spot changes that could cause defects.
Stronger, faster decision-making thanks to predictive insights and smart recommendations about next-best actions.
Energy-efficient and sustainable operations with AI tools to monitor consumption and make adjustments as needed.
Productivity is improved by analyzing data in real time, diagnosing issues, and then automating manual processes.

How is AI used in manufacturing? Use cases and examples

Below are just a few real-world examples of how AI is helping today’s manufacturers optimize their operations:

Predictive maintenance

Using sensor data and machine-learning models, maintenance teams can predict equipment failures before they happen and schedule timely repairs – reducing costly downtime and extending the life of assets.

Quality management & inspections

Computer vision systems help you analyze images and videos for visible defects and even their potential causes. This speeds up the inspection process while also boosting product quality.

Smart factories & production

Smart factories use connected equipment, sensors, and AI to monitor operations data in real time. This helps you speed up production lines, reduce downtime, and improve overall equipment effectiveness (OEE).

Supply chain planning & optimization

AI streamlines the flow of materials moving through the supply chain – boosting visibility and enhancing collaboration. This lets you respond faster based on more accurate forecasts and risk analysis.

Product design & customization

AI supports efficient product development through an iterative generative design process. Algorithms can automatically generate hundreds or thousands of design options based on inputs like goals and constraints.

Worker productivity & safety

AI tools and digital assistants can help teams do their jobs more efficiently while also lowering safety risks. For example, they can detect hazards buried in sensor data and guide maintenance teams through safe fixes.

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Overcoming common challenges

AI can deliver measurable gains in manufacturing, but production environments are complex, tightly coupled, and risk-sensitive. Successful adoption depends on addressing practical constraints early – before models touch live operations.

Fragmented and uneven data

Manufacturing data is often spread across machines, sensors, historians, and business systems. Aligning and validating data across these sources before deploying AI helps ensure predictions reflect real operating conditions.

Limited trust in AI recommendations

When AI influences production, maintenance, or quality decisions, teams need confidence in its outputs. Human oversight, confidence thresholds, and clear explanations help operators understand when to rely on AI – and when to intervene.

Risk of disrupting live production

Introducing AI directly into production systems can create instability if models encounter unfamiliar conditions. Phased rollouts and testing in controlled environments allow teams to prove value early on, without interrupting operations.

Governance and accountability requirements

Manufacturers operate under strict safety, quality, and regulatory expectations. Clear ownership, role-based access, and approval controls help ensure AI decisions are always auditable and compliant.

Security of operational data and models

AI systems depend on sensitive production and equipment data. Encryption, secure training environments, and controlled access reduce exposure while protecting intellectual property.

Change management on the factory floor

New AI tools can alter long-established workflows. Introducing capabilities gradually ties early use cases to visible operational improvements such as reduced downtime or less waste. This can shorten the learning curve and build adoption.

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What to look for in AI manufacturing software

The best cloud-based software doesn’t just bolt on AI systems; it embeds them into the core fabric of the platform, business workflows, and core industry-specific processes. When assessing options, look for AI that is designed and built within your applications, such as industry role-based insights that can be delivered through conversational AI, making it easier for teams to retrieve and act on relevant information. Use personalized industry AI agents designed to work within your manufacturing systems and processes, where agents can orchestrate and automate workflows across operational and production areas. And seek built-in governance to increase trust, including the latest privacy, auditability, and transparency standards.

When software includes best practices tailored to specific manufacturing modes, it equips AI with industry-specific data and processes – helping you deploy and realize value from AI far faster. And with newer AI technologies, such as GenAI and agentic AI that is tailored to your operations from the start, you can boost productivity by automating workflows, predicting outcomes, tackling planning and prioritization tasks, and optimizing operations.

The future of manufacturing AI

The future of manufacturing AI isn’t defined by a specific breakthrough that will change everything. Its evolution will gradually reflect how deeply intelligence becomes woven into everyday operations. In fact, what may become most compelling over time is how AI changes the tempo of the decision-making around manufacturing. Instead of periodic planning cycles and post-hoc analysis, AI powers continuous adjustment – where assumptions are constantly tested against real operating conditions, and decisions evolve as new information arrives. This shifts manufacturing from a series of handoffs and checkpoints to something closer to a living system that is always recalibrating.

Another interesting and often underrated shift is the way AI accumulates and compounds operational knowledge. As models observe years of outcomes across products, plants, and scenarios, they become better at recognizing subtle early signals – the kinds of weak patterns that are difficult for humans to reliably catch. Over time, this creates a form of institutional memory that allows organizations to learn faster from disruption, variation, and change rather than relearning the same lessons repeatedly. In that sense, the future of manufacturing AI is less about dramatic automation and more about depth: deeper context, deeper pattern recognition, and deeper continuity of insight as manufacturing environments grow more complex.

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Conclusion

Today’s best manufacturing solutions are already using AI to offset industry pressures, assist workers, and support safe and efficient operations. From natural language processing to computer vision, AI tools can now make a difference in every aspect of the manufacturing process. Deployed conscientiously, AI in manufacturing can radically improve productivity and increase customer satisfaction with goods produced – changing the game and ensuring manufacturers can compete into the future.

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Learn how Infor’s AI-powered manufacturing solutions can help you transform production and maximize speed, agility, safety, and satisfaction.

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Guide to artificial intelligence (AI) in manufacturing

Guide to AI in manufacturing

What is AI in manufacturing?

The importance of high-quality data for manufacturing AI models