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Artificial Intelligence (AI) is transforming industries by automating processes, optimizing production, and enabling data-driven decision-making. Evolving from basic automation to advanced machine learning and deep learning systems, AI is driving the shift toward intelligent, adaptive, and sustainable industrial ecosystems. Through innovations such as smart factories, cyber-physical systems, and digital twins, AI enhances productivity, quality control, and predictive maintenance while reducing downtime and waste. Its applications span manufacturing, logistics, and energy management, improving forecasting, inventory control, and resource efficiency. Despite challenges like high implementation costs, workforce adaptation, and cybersecurity threats, AI continues to shape the future of industrial operations. Emerging technologies such as edge AI, 5G connectivity, and advanced digital twins are expected to further enhance efficiency, resilience, and sustainability, solidifying AI's role as the cornerstone of modern industrial transformation and global competitiveness.