Artificial Intelligence (AI) has become one of the most talked-about technologies in manufacturing today. Some believe it can solve every operational challenge, and dream of limitless productivity gains. And while AI is indeed a powerful tool, it is still just a tool.
Author Radiana Pit | Copperberg
Photo: Freepik
Manufacturers are under immense pressure to integrate AI, with the hope of streamlining operations, cutting costs, and gaining a competitive edge. At the same time, the narrative outside the factory floor is filled with skepticism, fears of job loss, loss of human oversight, and misplaced trust in machines that are still far from infallible. This gap between expectation and reality is creating both opportunities and risks that disrupt the industry and the world at large.
For manufacturing leaders, the challenge is not simply deciding whether to adopt AI, but learning how to separate hype from capability and disruption from destruction. The truth is that AI cannot do everything it’s often credited with. But when applied properly, it can profoundly reshape the industry.
What AI really is
AI is often misunderstood as a single, magical technology capable of doing everything. In reality, AI is a collection of tools, algorithms, and systems, each designed for specific tasks. Its capabilities range from simple automation to complex decision-making, which provides powerful support in many areas of human endeavor.
Contrary to popular fears, AI is not meant to replace humans, but to amplify human abilities. It helps us process massive amounts of data, recognize patterns, make predictions, and automate repetitive or hazardous tasks. For example, AI can forecast equipment failures in a factory, analyze medical scans for anomalies, or optimize delivery routes for logistics operations.
However, AI is not self-sufficient. It requires human oversight, guidance, and judgment. It cannot operate independently because it lacks understanding and context. It still makes mistakes and misinterpretations, so its outputs are only as effective and safe as the humans who design, monitor, and interpret them.
How AI transforms manufacturing
Deepika Sandeep, Director of AI at Honeywell, explained in our seminar on the True Business Value and Impact of AI that “AI has been a technology enabler across the manufacturing value chain, from design and production to operations, maintenance, logistics, and supply chain management.” She explained how AI aligns with the principles of the Toyota Production System (TPS), a globally recognized framework for eliminating waste and maximizing efficiency:
- Kaizen (continuous improvement): AI models constantly learn from new data, improving performance over time.
- Jidoka (automation with human oversight): AI can automate repetitive tasks, but humans are still needed to verify outputs and intervene when necessary.
- Heijunka (production leveling): AI balances workloads across systems, machines, and people, reducing bottlenecks and optimizing efficiency.
AI can only operate within the boundaries of its data and programming, so it cannot generate data that doesn’t exist. It can easily misinterpret incomplete or biased data, and therefore, it always requires careful monitoring, maintenance, and ethical oversight.
Types of AI and their use cases
Different types of AI do very different things. For example, Generative AI produces new content like text, images, or code. Predictive AI analyzes historical data to predict outcomes, such as when a machine might fail. Each type requires different datasets, expertise, and safeguards. Confusing them can lead to mismanaged expectations or failed projects. The differences matter. Matching the AI to the task is key to getting useful, safe, and reliable results.
1. Narrow or Applied AI
Narrow AI is designed for one very specific task. It’s highly focused on performing that and cannot function outside its specific area. In medicine, for example, narrow AI can detect tumors in scans faster and often more accurately than human specialists. In manufacturing, it predicts equipment failures before they can cause costly downtime. Logistics companies use it to optimize delivery routes, and field service organizations use it for drones and robots to perform dangerous tasks like inspecting hazardous sites. While narrow AI is powerful within its domain, it always requires human oversight to verify results and make decisions, especially when situations extend beyond its programmed limits.
2. Generative AI (Gen AI)
Generative AI creates new content, such as text, images, code, or even product designs. Engineers can use it to suggest CAD-ready prototypes, companies can automate report generation, and customer service teams can deploy it in chatbots for instant responses. It can be a powerful tool for brainstorming, research, and design. But generative AI can also make mistakes called “hallucinations”, such as producing content that seems plausible but is incorrect or misleading. Humans are essential in scrutinizing, reviewing, editing, and applying its outputs responsibly.
3. Causal AI
Causal AI is designed to identify cause-and-effect connections. Instead of just reacting to observable patterns, it helps pinpoint why things happen. For example, in a factory, causal AI can determine why certain machines fail repeatedly, or it can connect energy inefficiencies to specific equipment problems. By understanding root causes, organizations can take proactive steps to fix systemic issues, rather than just addressing symptoms. Causal AI supports smarter, long-term decision-making, making it valuable in strategy, operations, and risk management.
4. Conclusive AI
Conclusive AI focuses on accuracy and reliability. It is designed to make precise decisions based on structured data, especially in situations where mistakes are costly. Industrial systems use it to separate real alerts from false alarms, while financial institutions deploy it to detect fraudulent transactions with minimal error. Conclusive AI ensures decisions are reliable, which is vital in high-stakes environments.
5. AI at Scale (Enterprise AI)
Enterprise AI optimizes operations on a large scale, by embedding it across the organization. It powers digital twins and drives enterprise-wide forecasting for sales, supply chains, or demand planning. Enterprise AI enables coordination across multiple departments and complex processes by providing real-time insights that can improve efficiency, reduce costs, and enhance strategic decision-making. Successfully scaling AI requires clean, high-quality data, careful planning, and alignment with organizational goals to ensure the technology optimizes operations rather than creating unnecessary complexity.
AI as a weapon of mass disruption
AI is reshaping the very nature of work. It creates new opportunities, transforms existing roles, and even protects workers from dangerous or repetitive tasks. At the same time, AI carries risks. It can make mistakes, produce misleading outputs, or amplify biases if left unchecked. In other words, disruption flows both ways, and understanding its dual nature is essential.
Creating new opportunities and skills
AI has opened doors to jobs that would have been unimaginable just a decade ago. Companies now need experts to ensure AI operates ethically, fairly, and transparently. Model auditors check for errors and bias, while data engineers and scientists organize the vast datasets AI relies on to “learn.” Sustainability analysts leverage AI to track emissions, optimize energy use, and reduce waste. These roles require critical analysis, oversight, and new technical skills. The ability to responsibly guide technology is thus becoming one of the most valued skills in today’s workforce.
Amplifying human work
AI also reshapes existing roles. In manufacturing, workers now oversee collaborative robots and interpret AI-driven forecasts instead of performing repetitive assembly. Logistics professionals use AI to anticipate demand, optimize routes, and prevent bottlenecks. In healthcare, AI analyzes scans and patient data, enabling clinicians to focus on complex diagnoses and critical thinking. Across industries, AI shifts the framework from manual execution to strategic oversight, creative problem-solving, and informed decision-making.
Making work safer
One of AI’s most immediate benefits is safety. Drones and robots can enter hazardous environments such as disaster zones and chemical plants, and reduce risks for human workers and responders. Likewise, automated monitoring detects unsafe conditions in real time, so workers can avoid hazardous situations. So, AI makes work safer and more humane by automating dangerous, repetitive, or physically demanding tasks.
Systemic transformation
AI transforms entire systems. In manufacturing, AI predicts equipment failures, balances workloads, and designs products that minimize material and energy use. In energy-intensive industries, it models emissions and optimizes usage, enabling organizations to reduce environmental impact without compromising output. AI’s benefits are systemic. It enhances speed, efficiency, and sustainability across operations and over time.
Errors, hallucinations, and false positives
Yet AI is not infallible. Unlike humans, AI does not “know” the truth. It recognizes patterns and calculates probabilities. This creates two major pitfalls: false positives and hallucinations.
False positives occur when AI flags a problem that doesn’t exist. Predictive maintenance software might falsely identify a turbine as faulty, prompting unnecessary repairs. Safety monitoring systems can also misinterpret normal behavior as dangerous and cause operational interruptions.
Hallucinations are subtler but more insidious. When AI generates content, whether text, predictions, or analysis, it can confidently produce results that are entirely incorrect. This happens because AI extrapolates from patterns in its data rather than understanding reality. For instance, a medical AI might “invent” symptoms or misread a scan if it encounters data outside its training set.
These issues mean that AI cannot be left to operate on its own. Without human oversight, errors can multiply, biases can be reinforced, and flawed decisions can create an undesired domino effect. High-quality data, ongoing monitoring, and constant validation are essential to ensure AI acts as a tool for improvement rather than a source of chaotic disruption.
Humans are indispensable
AI is an incredibly powerful tool, but it requires human guidance and supervision. People decide which problems AI should tackle, interpret its outputs, and apply ethical judgment. AI amplifies human capabilities but does not replace creativity, intuition, critical thinking, or moral responsibility. When used responsibly, it makes work safer, more strategic, and more meaningful. But only when used responsibly by human experts at the helm who understand its limitations.
A holistic view of risks and rewards
The impact of AI depends entirely on how it is used, the quality of the data it relies on, and the degree of human oversight guiding it. To adopt AI responsibly, organizations must understand both its potential benefits and inherent risks, as well as the context in which they arise.
AI can accelerate processes, optimize energy use, reduce waste, and make workplaces safer by taking over hazardous or repetitive tasks. In healthcare, AI can quickly analyze medical scans, helping doctors detect anomalies earlier. In logistics, it can anticipate supply chain disruptions, improving efficiency and reducing costs. In manufacturing, AI can predict equipment failures and optimize production schedules, thus saving resources and improving quality. These benefits are most effective when AI is guided by human expertise. People validate insights, interpret results, and apply judgment.
At the same time, AI carries significant risks. It reflects the biases and limitations of the data it is trained on. Incomplete or misrepresentative datasets can lead to misclassifications, overlooked cases, or systemic errors. And these mistakes are emphasized when people overly rely on AI without critical thinking. Large AI models also consume substantial energy, which increases the environmental costs. The severity of each risk depends on context. An error in predicting a supply chain delay may cause minor inefficiencies, while a misdiagnosis in healthcare can have life-or-death consequences.
Responsible AI adoption means recognizing that risks and benefits are two sides of the same coin. Context determines which risks matter most and where benefits can be maximized. Human oversight, careful data curation, and transparent reporting turn AI from a source of potential errors into a force multiplier that enhances safety, efficiency, and decision-making.
AI already powers your world
AI is a weapon of mass disruption, not because it destroys jobs like many fear, but because it changes the rules of work and the systems we rely on. And AI is already embedded in countless systems. From writing tools to navigation apps, predictive supply chain software, and warehouse robots, AI enhances efficiency, decision-making, and convenience.
Resisting AI can compromise competitiveness, efficiency, and sustainability. Companies that ignore predictive maintenance or data-driven operations risk costly downtime and lost operational advantages, while early adopters have already optimized resources and performance.
What matters most when pondering AI is purpose and responsibility. The critical question is not whether to use AI, but how and why:
- What purpose will AI serve?
- How will it be applied responsibly and safely?
- How will outcomes be measured, and risks mitigated?
Organizations that answer these questions ethically gain strategic advantages, improve efficiency, and create safer, more meaningful work environments.