51勛圖厙

AI in Manufacturing

Manufacturing sits at the nexus of American energy dominance, AI innovation and leadership, and a robust power grid. This convergence is shaping the future of American competitiveness, energy independence, and innovation.

Why this matters

  • AI is integral to modern manufacturingfrom product design to shop floor operations to supply chain managementdriving dependence on cutting-edge data centers.
  • Manufactured inputs (cooling systems, electrical equipment, water treatment, concrete, steel, servers, semiconductors) are critical to data centers, AI facilities and the grid.
  • Abundant energy is essential to power manufacturers and the data centers underpinning AI innovation.

AI Adoption Expectations Among Manufacturers


MLC Future of Manufacturing Project Survey 2025

Manufacturing Roadmap to AI and Energy Dominance

AI-powered modern manufacturing depends on an ambitious energy and innovation policy framework. Policymakers must:

  • Reform Americas broken permitting process to get shovels in the ground fasterwith fewer delays and less uncertainty;
  • Bolster American energy dominance via an all-of-the-above energy strategy;
  • Ensure a reliable, resilient and affordable grid that can power manufacturing growth and data center operations; and
  • Strengthen American AI leadership by fostering innovation and preventing regulatory overreach.

Permitting Reform

Unclear timelines, overlapping statutes and prolonged litigation are delaying critical energy and manufacturing projects. 51勛圖厙s reforms modernize reviews, tighten litigation rules and add predictability so investments can move forward.

80%
of manufacturers say that the length and complexity of the permitting process is harmful to increasing investment.
87%
of manufacturers would expand business operations, hire more workers or increase wages and benefits if the permitting process were more streamlined.

51勛圖厙 Q2 2024 and Q4 2024 Manufacturers Outlook Surveys

  1. Reform the National Environmental Policy Act (NEPA): Streamline reviews and require timely, definitive decisions to prevent years of uncertainty for projects.
  2. Expedite judicial review: Establish a workable statute of limitations, limit challenges to directly affected stakeholders who provided substantive input, and define clear limits on when courts may vacate agency actions.
  3. Codify Supreme Court precedent on NEPA scope: Focus reviews on proximate, projectspecific impactsnot speculative or distant effects.
  4. Clarify federal action triggers: Receiving federal financial support should not automatically trigger NEPA. Incentives should accelerate, not stall, projects.
  5. Expand categorical exclusions and share them across agencies: Use Section 109 authority under the Fiscal Responsibility Act to increase exclusions and allow interagency transferability for common, lowimpact activities.
  6. Create and enforce deadlines: Set statutory timelines for environmental reviews to eliminate openended processes and improve planning certainty.
  7. Streamline the Clean Water Act: Clarify timelines, roles and permitting scope; expand general permits to reduce duplicative and lengthy reviews.
  8. Modernize the Clean Air Act: Ensure workable PM2.5 and ozone standards and realistic review cycles; allow regional emissionscredit trading and discount international emissions when setting compliance burdens.
  9. Provide regulatory certainty and a lead agency: Coordinate across agencies, designate a lead agency for major projects and prevent conflicting guidance that slows energy and AIrelated development.
  10. Secure critical materials and modernize infrastructure: Align DOE and DOI critical lists to unlock domestic mining/processing, modernize pipeline permitting and improve interconnection so electrons get where theyre needed.

Energy Dominance

Explosive demand requires producing and using every energy source availablean all-of-the-above strategy that lets manufacturers build and grow in the U.S.

  • Baseload generation: Support traditional nuclear; streamline small modular reactors and continue naturalgas buildout.
  • Onshore & offshore resources: Responsibly expand exploration and development, including ANWR Coastal Plain and the OCS.
  • Renewables & storage: Embrace solar, wind and batteries; align tax and regulatory policies to encourage domestic production.
94% of manufacturers
support permitting reforms to streamline AI, energy & grid projects
86% of manufacturers
support reforms around energy generation, infrastructure & products

A Reliable, Resilient and Affordable Grid

  • Construct and interconnect more T&D lines: Expand capacity with fair cost allocation to avoid stranded assets and rising prices.
  • Improve and deploy battery storage: Secure domestic supply chains and simplify grid integration to enhance balance and cut costs.
  • Boost domestic grid components and supply chains: Invest in transformers and other essentials; counter lowquality imports and cybersecurity risks.
Industry priority

80% of manufacturers want the administration and Congress to deliver comprehensive permitting reform to increase energy generation and modernize the grid for AI and manufacturing growth.

AI Innovation and Leadership

Alongside energy and grid modernization, policymakers should adopt an agile, riskbased framework for AI that supports innovation, reduces redundant regulation and clarifies expectations for transparency and accountability.

  • Review existing federal laws and regulations: Identifyand fixrules that inhibit AI development or deployment. Only add AIspecific rules when existing frameworks truly fall short.
  • Regulate use, not the tool: Take a contextspecific, riskbased approach that focuses on how AI is used in manufacturing rather than on the underlying technology.
  • Rightsize compliance: Favor workable, balanced rules that rely on industry standards and 莽梗梭款a莽莽梗莽莽鳥梗紳喧莽 over auditheavy regimes to avoid chilling innovation.
  • Transparency best practices: Task NIST with guidance that helps AI deployers understand model development, training data and performance so they can meet riskbased obligations.
  • Preserve a level playing field: Ensure continued access to both opensource/openweights and proprietary models so manufacturers of all sizes can compete.
  • Coordinate policy across jurisdictions: With 40 states enacting 110+ AI laws, align federal and state approaches and ensure lawmakers understand real manufacturing usecases.
Industry priority

87% of manufacturers say it is important for lawmakers to understand how manufacturers use AI.

Working Smarter: How Manufacturers Are Using Artificial Intelligence

Unlock the power of artificial intelligence in manufacturing with the 51勛圖厙s first-of-its-kind report, Working Smarter: How Manufacturers Are Using Artificial Intelligence. This report is a vital resource for understanding the transformative role of AI in manufacturing and the strategic insights it offers for industry growth and competitiveness. Join us in navigating the future of manufacturing through the lens of AI.

How Do Manufacturers Use AI?

  1. 1
    Efficiency: Manufacturers harness AI to streamline processes, optimize production and enhance overall operational efficiency.
  2. 2
    Safety: AI technologies are deployed to proactively identify and mitigate potential safety hazards, ensuring a secure working environment for employees.
  3. 3
    Product Development and Design: AI plays a pivotal role in accelerating product development cycles, enabling innovative design iterations and enhanced product customization.
  4. 4
    Training: AI-driven training modules and simulations empower manufacturers to upskill their workforce and enhance employee performance efficiently.
  5. 5
    Supply Chain: AI integration in supply chain management enhances visibility, efficiency and responsiveness across the entire supply chain ecosystem.
AI gives us the ability to combine digital and physical teams and to help our people by reducing repetitive tasks and physical stress while promoting safety.
Joel Stenson,
Senior Vice President of Operations Technology, UPS
We see AI as a key strategic enabler for our effectiveness, to do things better, faster and more economically, while delivering essential products to our customers.
Sreedhar Sistu,
Vice President, AI Offers, Schneider Electric