Abstract
This study examined the transformative role of Artificial Intelligence (AI) and automation in the manufacturing industry, focusing on how these technologies reshape operations, enhance
efficiency, and sustain competitiveness. It discussed three main dimensions of artificial intelligence (AI) such as functional, technological, and application dimension, it anchored on the SocioTechnical Systems (STS) Theory, which stressed the balance between technological systems and human adaptability. The study was grounded in secondary sources, including journals, textbooks, and online materials, to provide conceptual, theoretical, and proposition declarative. The study identified major challenges including workforce displacement, ethical problems, data privacy and security issues, algorithmic bias, and high implementation costs, all of which can limit successful adoption if not properly addressed. To overcome these obstacles, the study emphasized the importance of robust governance frameworks, continuous employee reskilling, ethical AI practices, and strategic alignment of AI initiatives with organizational goals. Finally, it concluded that while AI and automation offer powerful tools for operational transformation in manufacturing, sustainable adoption requires a socio-technical approach that integrates
workforce development, inclusivity, and ethical safeguards, the study concluded that AI adoption in manufacturing succeeds through technological, human, and ethical integration, ensuring
efficiency, inclusivity, and sustainable transformation.
Keywords: Artificial Intelligence, Automation, Operational Transformation, & Process Optimization
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