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The ASSOCHAM鈥揙disha State Development Council, in collaboration with strategy consulting firm Primus Partners, has released a landmark report titled 鈥淎I-Driven Manufacturing: Innovation, Efficiency & Sustainable Growth鈥� at the Odisha Manufacturing Conclave 2025. The report explores how Artificial Intelligence (AI) is reshaping manufacturing鈥攂oth globally and in India鈥攂y enhancing productivity, operational efficiency, sustainability, and resilience across key sectors like steel, mining, green energy, logistics, and infrastructure.The report features real-world case studies from Odisha and other regions, highlighting AI applications in predictive maintenance, intelligent automation, smart logistics, and quality control. It positions Odisha as a national model for AI adoption, citing initiatives such as the Odisha AI Policy 2025 and the Odisha AI Mission as pivotal in advancing the state's industrial transformation.Key findings underline AI鈥檚 growing impact on responsible manufacturing, with significant contributions to reducing emissions, optimising energy use, and ensuring compliance with environmental and governance standards. The report also emphasises the importance of public-private partnerships in scaling AI solutions, urging stronger collaboration among government bodies, industry leaders, academia, and startups.Special focus is given to the development of a future-ready workforce, especially in micro, small and medium enterprises (MSMEs). The report calls for targeted AI-based skilling programmes, digital infrastructure support, and innovation linkages with technical institutions to prepare Odisha鈥檚 manufacturing sector for the digital age.Speaking at the event, Mr Pankaj Lochan Mohanty, Chairman of the Odisha State Development Council at ASSOCHAM, noted: 鈥淎I is not just optimising manufacturing鈥攊t鈥檚 redefining it. Globally, AI-powered factories have seen up to 40 per cent productivity gains and 90 per cent defect detection accuracy. With 41.2 million tonnes per annum of steel capacity and 55 per cent of India鈥檚 iron ore output, Odisha is uniquely positioned to lead India鈥檚 AI-led industrial leap.鈥滽anishk Maheshwari, Co-Founder and Managing Director of Primus Partners, added: 鈥淎I is rapidly transforming global manufacturing. Over 80 per cent of manufacturers have already integrated AI into their operations. Our findings show that AI can reduce defects by 66 per cent, cut material costs by 12.5 per cent, and speed up production cycles by 20 per cent. Odisha鈥檚 proactive policies and sectoral pilots present a clear opportunity to create globally competitive and ESG-aligned manufacturing ecosystems.鈥漈he Odisha Manufacturing Conclave 2025 served as the launchpad for the report and brought together senior government officials, industrial leaders, innovators, academics, and policy experts. Discussions centred on India's readiness for an AI-driven industrial revolution, with Odisha showcased as a frontrunner in smart manufacturing, balancing innovation with environmental and social responsibility.As India navigates the Fourth Industrial Revolution, Odisha's blend of industrial strength, digital readiness, and forward-looking policy places it at the forefront of a tech-enabled, globally competitive manufacturing future.