Whatever is being done by humans today, will be done by Artificial Intelligence (AI) based systems, but at computer speed, scale and scope. AI is making its path towards the transformation of the manufacturing industry and improving the manufacturing processes. According to the panel of Forbes technology council members, 13 different sectors, including the manufacturing industry will be revolutionized by artificial intelligence. AI and robotics can transform the complicated task into consistent along with precise solutions. With the increasing operation of the industrial robot have drastically marked an increased deployment of AI in manufacturing processes. Artificial Intelligence (AI) is widely applied and is gradually approaching in the manufacturing segment, easing the automation with learning and error-free decision-making using learning algorithms. AI-driven systems are placing a simpler route to the future manufacturing industry by producing a lot of benefits by presenting innovative prospects, boosting production of goods with improving efficiencies, by implementing general AI to make machine interaction closer to human interaction. This technology enables the manufacturer to overcome various challenges that have remained in the manufacturing sector such as expertise shortage, poor decision making, problems associated with integration, and overloaded data. Hence, the implementation of AI in the manufacturing sector allows companies to fully renovate their procedures. It allows smart AI-robots/machines to collect and extract data, acknowledge various patterns, learn from that patterns and adapt to new environments through a machine or deep learning based on the complexity of tasks assigned to them. Therefore, the deployment of AI and robots in the industry will transform the massproduction along with the error-free decision-making capability. AI-based Robots in Industry 4.0 can do persistent actions such as from designing the manufacturing model, developing expertise, developing new automation solutions, eliminating human error along with providing exceptional quality in products. With the implementation of AI, robots will replace manpower and carry out hazardous activities. As a result, the number of accidents will drop across all sections in the manufacturing sector. AI & robotics technology will free the manufacturer issues related to untrained workers. Hence, entrepreneurs can concentrate on further modernization of industries and scaling their industry to greater heights. Apart from the numerous opportunities in adopting emerging technologies like AI, there are some challenges too for industrialists.The AI and robotics technology into the manufacturing industry would necessitate a huge capital investment for startups and existing manufacturers. But the return on investment will be high because smart machines will begin to take care of daily activities, companies will incur a considerably lower operating cost. AI’s proponents claim that technology is only an evolutionary form of automation, a predictable result of the Fourth Industrial Revolution. AI may be efficient at creating things, improving them, and making them cheaper. But there is no replacement for human ingenuity in dealing with the unanticipated changes in tastes and demands.