Manufacturing Transformation with AI Agents
Manufacturing is set for a major transformation with AI agents. These AI agents are programs that interact with their environment, perceive data, and act on that data, enabling organizations to gain insights, speed up innovation, and transform value chains. At Hannover Messe 2025, Microsoft and our partners will showcase how these technologies are creating a more connected, efficient, and intelligent future for the industry. Organizations will see how they can move faster, adapt smarter, and lead with confidence.
Yet even with all this progress, for decades fragmented systems and heterogeneous environments have kept digital threads within the industry largely aspirational, preventing most organizations from achieving synchronized operations. A persistent inability to connect modern technology solutions with aging infrastructure has also slowed the collaboration long promised to manufacturers. Together, unified data and AI are now enabling organizations of all sizes to break through these barriers, transforming digital threads from static, disconnected datasets to dynamic networks. With AI agents serving as the interface, every worker can surface the overall equipment effectiveness (OEE), total cost of ownership (TCO), and return on investment (ROI) insights necessary to drive decision-making.
AI Agents Supporting the Development of Frontline Workers
Manufacturing transformation is reaching into every aspect of operations. Frontline workers now have access to AI agents providing them with enhanced guidance needed to make informed decisions. To expand this modern toolbox, we announced back at Ignite 2024 the public preview of Factory Operations Agent in Azure AI Foundry. An AI-powered assistant, Factory Operations Agent streamlines operations—enabling operators, production, and leaders to quickly access insights and optimize manufacturing processes through natural language querying. In doing so, the agent accelerates issue resolution and root cause analysis to improve productivity within day-to-day manufacturing operations.
Advancing Innovation in Digital Engineering with Generative AI
Manufacturers shape their market leadership through digital engineering and design. By accelerating development and prototyping, and reducing time-to-market, AI-powered generative design is empowering manufacturers to create new high-performing, customer-centric products.
Making AI-Powered Digital Threads a Reality for Manufacturers
The nervous system of industrial operations, digital threads weave together critical information, processes, and people across manufacturing segments. Grounded in unified operational (OT), information (IT), and engineering (ET) data, the electronic frameworks can empower individuals with relevant, timely insights. From initial concept to customer support, this continuous flow of data connects and enriches every aspect of manufacturing.
See Industrial AI in Action at Hannover Messe 2025
The future of manufacturing is powered by AI. This year, at Hannover Messe 2025, attendees will have the opportunity to experience how Microsoft and its partners are supporting the industry transformation—from digital engineering, on factory floors, with frontline workers, and through digital thread. Join us at Hall 17, Stand G06.
Conclusion
In conclusion, AI agents are transforming the manufacturing industry by providing real-time insights, accelerating innovation, and streamlining operations. With the power of generative AI, manufacturers can create new high-performing, customer-centric products, and with digital threads, they can connect and enrich every aspect of manufacturing. Join us at Hannover Messe 2025 to see industrial AI in action and learn how Microsoft and its partners are supporting the industry transformation.
FAQs
Q: What is AI agent in manufacturing?
A: AI agents are programs that interact with their environment, perceive data, and act on that data, enabling organizations to gain insights, speed up innovation, and transform value chains.
Q: What is the purpose of Factory Operations Agent?
A: The Factory Operations Agent streamlines operations—enabling operators, production, and leaders to quickly access insights and optimize manufacturing processes through natural language querying.
Q: What is generative AI in manufacturing?
A: Generative AI is empowering manufacturers to create new high-performing, customer-centric products by accelerating development and prototyping, and reducing time-to-market.
Q: What is digital thread in manufacturing?
A: The digital thread is the continuous flow of data that connects and enriches every aspect of manufacturing, from initial concept to customer support.
Q: What is the future of manufacturing?
A: The future of manufacturing is powered by AI, with AI agents, generative AI, and digital threads enabling real-time insights, accelerating innovation, and streamlining operations.

