Artificial intelligence (AI) is transforming manufacturing from an automated production system into an adaptive and intelligent system with continuous improvement capabilities. For many decades, automation has been the cornerstone of industry to ensure just-in-time and cost-effective production. However, automation on its own is inherently limited, as it lacks the ability to sense, learn, or respond to unexpected conditions. AI bridges this gap by enabling perception, reasoning, and decision-making within industrial systems, resulting in smart manufacturing, where systems are data-driven, self-optimizing, and responsive to dynamic conditions.