How Artificial Intelligence Is Used in Manufacturing

By Jeremy Bowman – Updated Jun 1, 2025 at 12:36 PM | Fact-checked by Frank Bass

Key Points

AI in manufacturing reduces defects and saves costs through technologies like robotics and machine learning.
Predictive maintenance with AI minimizes unexpected downtimes, lowering maintenance costs.
AI optimizes supply chains by forecasting demand and improving route efficiency.

AI in manufacturing is becoming more common than you might think.

Increasingly, technology plays a major role in how products get made on the factory floor. Manufacturing plants can resemble high-tech laboratories with robotic arms handling repetitive tasks and algorithms, ensuring that products are made according to manufacturer specifications.

An infographic showing five examples of how artificial intelligence could be used in the manufacturing industry. — Image source: The Motley Fool.

Industrial titans like General Electric (GE -2.89%) and Siemens (SIEGY -0.40%) have embraced artificial intelligence because the technology offers a number of advantages, including minimizing defects and errors, reducing downtime, and saving on costs.

In this look at AI in the manufacturing industry, we'll discuss artificial intelligence and how it plays a role in manufacturing, and review several examples of how AI is used in manufacturing.

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Machine Learning

Machine learning is a technique by which artificial intelligence programs are trained.

What is artificial intelligence?

Artificial intelligence is a technology that allows computers and machines to do tasks that normally require human intelligence.

This includes a wide range of functions, such as machine learning, which is a form of AI that trains data to recognize images and patterns and draw conclusions based on the information presented.

There's also computer vision, which is widely used in manufacturing; natural language processing, which includes tools like ChatGPT and other chatbots; neural networks; and robotics, which may be the most commonly used AI application in manufacturing.

Artificial intelligence capabilities allow manufacturers to redeploy human labor to jobs that machines can't yet do and to make production more efficient and cost-effective.

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2. AI in quality control

Quality control is a key component of the manufacturing process, and it's essential for manufacturing. Making machines like automobiles can be deadly if there are errors.

Here, AI is also being applied in a number of different ways. AI-powered vision systems can recognize defects, pull products, or fix issues before the product is shipped to customers.

Semiconductor companies, including Samsung (OTC:SSNL.F) and Nvidia (NVDA -0.49%), also use machine learning for quality control, optimizing chip design, and improving manufacturing.

Semiconductor

A semiconductor is a basic element or compound substance that conducts electricity in certain situations.

Quality control is one area where AI systems consistently outperform manual testing processes done by humans. AI machines are also able to optimize production and figure out the root cause of a problem when there is an error.

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Supply Chain

A supply chain is a series of steps taken to obtain raw materials, turn them into a product, and deliver the product to consumers.

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Will artificial intelligence revolutionize the manufacturing industry?

It's clear that artificial intelligence is already having an impact on the manufacturing industry. That influence will continue to grow.

Unlike some other industries, generative AI technologies like ChatGPT seem less likely to have an impact on manufacturing. However, other forms of AI tech, like robotics and machine learning applications, will push the envelope, helping manufacturers produce goods more efficiently, relieve human labor, and eliminate errors that lead to product recalls or even real-world accidents.

Some forecasts estimate that the opportunity in artificial intelligence will be worth trillions of dollars. If you're looking to invest in AI manufacturers, you can consider some of the stocks above or take a look at other AI stocks, machine learning stocks, or AI ETFs.

About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Abb, Adobe, Amazon, International Business Machines, and Nvidia. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft, C3.ai, Fanuc, GE Aerospace, and Rolls-Royce Plc. The Motley Fool has a disclosure policy.