Sep 02 2026
Artificial Intelligence

How Manufacturers Can Use Agentic AI To Take Production to the Next Level

Implementing artificial intelligence agents can change the game for manufacturers — but they have to get the details right.

Automation has helped manufacturers improve their productivity and efficiency for decades, but the emergence of artificial intelligence has had a massive impact on the industry in recent years. As manufacturers become more proficient in their use of AI, the next level will be implementing agents that take actions autonomously.

A 2026 study found that 46% of manufacturers plan to use AI over the next five years to drive positive business outcomes. These outcomes will arrive in a variety of ways, as AI agents can help companies coordinate production schedules, monitor the health of their equipment, optimize their supply chains, identify emerging quality issues and provide frontline employees with real-time operational guidance.

Agentic AI is positioned to be a true game changer in manufacturing. When combined with human expertise, these agents can improve productivity, strengthen resilience and enable organizations to respond more quickly to changing business conditions.

But before they can take advantage of agentic AI to execute and orchestrate work across operations, manufacturers have to get several critical factors right. To scale agentic AI successfully, companies must establish solid foundations for data, integration, governance and cybersecurity, while maintaining safety, transparency and human oversight.

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Augmentation, Not Automation

A common misconception about agentic AI in manufacturing is that it’s designed to replace the employees on the plant floor. In reality, it is far more useful as an augmentation tool that helps operators reach better answers quicker, not one that removes them from important decisions.

AI can be thought of as a “time compression mechanism.” Rather than automating a decision outright, an agent can pull together relevant data, standard operating procedures and historical context that an operator might otherwise have to track down manually (perhaps by digging through documentation or finding a knowledgeable colleague).

Conversely, full automation may present real risks in a physical environment. If a system reaches the wrong conclusion and acts on it without a human checkpoint, the result may be more than just a bad output. This may lead to equipment damage, safety incidents or costly downtime. Keeping a person in the loop makes agentic AI safe to deploy at scale.

Framed this way, agentic AI becomes a tool that extends the expertise already present in an organization, rather than a threat to it. That framing matters throughout the rest of this discussion, because nearly every barrier to adoption traces back to whether an organization has built the trust and infrastructure needed to let agents act on people’s behalf.

Is Your Factory Ready for Agentic AI?

Not every process is well suited for agentic AI. The best candidates are highly repetitive processes with minimal variation, such as production lines that don’t require frequent changeovers and therefore don’t require an agent to frequently relearn new conditions. Agents also need historical data to provide context that helps them solve problems when issues arise.

Several manufacturing use cases meet both of these criteria, including predictive maintenance, quality management through computer vision, real-time production scheduling and supply chain coordination. These use cases combine repeatable processes with rich historical data.

As manufacturers evaluate where to start with agentic AI, they should resist the temptation to chase their most ambitious use cases first. The processes best suited for agentic AI today are often the ones that look the least exciting on paper.

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The Real Bottleneck: When IT and OT Keep Agentic AI Siloed

Much of the conversation around enterprise AI focuses on connecting software systems, but in manufacturing, that’s only part of the picture. Operational technology (OT) — such as programmable logic controllers, supervisory control and data acquisition (SCADA) systems and manufacturing execution systems that run the physical plant — must be connected to enterprise IT systems for agents to function effectively.

In many manufacturing environments, this connection is missing. Individual machines may not be connected to the broader manufacturing process around them. This lack of connection may be due to legacy equipment that is decades old or to cultural barriers between IT and OT teams, but the result is that many manufacturers struggle to move their agentic AI initiatives past the pilot stage.

This connectivity issue must be solved before agentic AI can operate at scale.

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The Traceability Gap: How Paper Processes Break Agentic AI

The data that manufacturers need for their agentic AI initiatives isn’t always in a form that’s useful to these agents. For example, many factories lack traceability — the ability to connect a raw material, a specific production run and any resulting quality issues into a single, continuous digital thread.

In many factories, the relationship between raw materials, the manufacturing run they may be used in, and any downstream quality failure isn’t tracked digitally from start to finish. If an AI agent is unable to make these connections, it lacks the context to analyze why a defect occurred.

Many manufacturers continue to use paper-based processes, but this is an area where they lead to problems. Handwritten logs or verbal handoffs between shifts may work well for human teams, but they make it impossible for AI agents to track patterns across a full production history.

Closing this gap doesn’t require replacing every paper process overnight. However, manufacturers must identify where agents are unable to reach important data and prioritize making it available to them.

DISCOVER: Learn how to optimize your organization’s infrastructure for artificial intelligence.

Agentic AI in Action: Bearing Failure Prediction

Manufacturers that overcome the factors that impede their agentic AI initiatives can unlock valuable use cases, such as predicting bearing failure before it happens. To achieve this objective, an agent may use data from a historian, condition monitoring software and maintenance records to identify that a bearing is likely to fail within a specific time frame – perhaps in the next few days.

One of the key benefits of agentic AI is that it can take action beyond simply raising an alert. In the example of the bearing failure, an agent could automatically update the maintenance plan and adjust the production schedule to accommodate the repair, coordinating across systems that would otherwise require several separate manual handoffs.

Manufacturers can further enhance this capability by implementing tools such as acoustic sensors to detect the vibrations that precede a failure. This can help OT teams get even further ahead of problems and give maintenance teams more time to make repairs before a breakdown. Early detection can often enable manufacturers to implement repairs during scheduled maintenance windows rather than requiring unplanned downtime.

Ultimately, agentic AI can bring significant benefits to manufacturing. By connecting data, implementing contextual reasoning and coordinating action — all with a human reviewing the outcome — manufacturers can enhance the productivity and efficiency of their operations.

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