Agentic AI is transforming manufacturing by moving from simple automation to smart systems that can make decisions on their own. Think of agentic AI like having a helpful robot that doesn't just follow orders—it can think, plan, and solve problems without someone telling it exactly what to do.

This week, the manufacturing world is buzzing with excitement about how agentic AI can handle complex tasks. Instead of just doing one job over and over, these systems can now automatically adjust production plans, fix supply chain problems, and check product quality all by themselves. A big technology company called Microsoft announced a new chip designed specifically for AI to work super fast. This means factories can process information right on the factory floor instead of sending it far away to big computers.

However, there's an important reality check: the rollout will take time. Even though companies are excited about these technologies, engineers say the systems need to work perfectly—like 99% of the time or better—before factories will really trust them. Right now, only about 58% of manufacturers are using physical AI, but that number is expected to jump to 80% in the next two years.

Companies are also investing heavily in cheaper AI tools and sensors that help factories watch their equipment and predict when things might break. A survey shows that nearly 3 out of 4 companies plan to use agentic AI within two years. The big takeaway is that 2026 is the turning point year when AI moves from just testing in small projects to actually running big parts of factories. Success will depend on how well companies build strong digital systems and train their workers to work alongside these smart machines.