Manufacturing Weekly AI News

September 15 - September 23, 2025

This weekly update reveals how AI agents are revolutionizing manufacturing facilities worldwide. These smart computer helpers are becoming essential tools for factory operations, from predicting machine failures to automating complex production decisions.

Bausch + Lomb faced a major challenge when demand for their daily contact lenses exploded. The company needed to quickly increase production at facilities in Ireland and New York. CEO Brent Saunders turned to AI software called Atlas, made by Arena AI, to solve this problem. This smart system watches machines constantly and tells maintenance workers when something might break before it actually happens.

The Atlas AI system was first tested in Rochester in 2023. By last year, Bausch + Lomb had added it to three new contact lens production lines. Saunders told reporters that millions of lenses are now being made that wouldn't have been possible without the AI helper. This shows how AI agents can directly increase what factories can produce.

A major survey by KPMG found that 77% of manufacturers across eight countries plan to increase their AI investments over the next year. This survey included 183 AI manufacturing leaders, showing that factory owners worldwide believe AI agents will give them important advantages.

Startup companies are leading the way in using agentic AI for supply chain management. Spot & Tango, a dog food company, opened their first manufacturing facility near Allentown, Pennsylvania. At first, workers had to manually coordinate raw materials from suppliers and schedule production based on ingredient availability.

Now Spot & Tango uses an agentic AI tool made by Didero, an AI supply chain management startup. This smart helper can log purchase orders, confirm them, and build appropriate production schedules based on what ingredients are available. The AI system now fully automates around 60% of purchase orders, allowing the company to scale production without hiring more employees.

Battery manufacturing is also being transformed by AI agents. FranklinWH Energy Storage makes home batteries for power backup during outages. Their new California production facility features AI-enabled visual inspection systems. These smart cameras closely monitor the production of lithium iron phosphate home batteries and flag quality issues that workers used to check manually.

The AI model at FranklinWH continuously learns from production data to predict problems before they occur. This represents a major shift from reactive maintenance to predictive maintenance, where AI agents help prevent issues rather than just fixing them after they happen.

Software companies are developing AI copilots specifically for manufacturing workflows. CloudNC has created CAM Assist, which speeds up CNC machining by handling the most time-consuming parts of the process. This AI helper is already being used daily at around 1,000 machine shops globally, showing how quickly these tools are being adopted.

LimitlessCNC is developing an interactive AI-powered copilot that integrates directly into CAM software to automate CNC workflows. Instead of spending hours creating toolpaths and setting up operations, factory workers can use this AI agent to automatically generate and optimize toolpaths in minutes.

Up2parts focuses on helping small and medium-sized manufacturers with AI-based software that includes automated quoting and AI-driven CAM programming. Their system can even extract tolerance information from PDF drawings using OCR technology, creating intelligent 3D models with critical manufacturing details.

Lambda Function takes a different approach by combining physics-based machine learning with real-time shop-floor feedback. Their platform enables autonomous precision machining through closed-loop learning, anomaly monitoring, and AI-driven support systems.

Mastercam, a major manufacturing software company, is developing its own AI-powered digital assistant called Copilot. This tool combines conversational help functions with command capabilities that translate natural language instructions into manufacturing actions. Workers can ask questions or execute commands directly, reducing time spent navigating complex software menus.

The impact of these AI agents extends beyond individual factories. According to industry analysts, Gen AI capability is doubling roughly every seven months, and manufacturing is one of the key industries being transformed through process automation with robotics. Large technology companies report that AI is already handling up to half of some business tasks, with productivity improvements of 30% to 50% in key functions.

This weekly update shows that AI agents are no longer experimental technology in manufacturing. They're becoming standard tools that help factories predict problems, automate decisions, and improve quality control across diverse industries from contact lenses to dog food to home batteries.

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