Abstract
Over the past decade, AI-driven research has significantly advanced engineering processes and outcomes. The Internet of Things (IoT), a rapidly expanding network of sensor-embedded devices, enables autonomous data collection and exchange over the Internet. Integrating AI-powered decision support systems with IoT (AIoT) transforms factory workflows, manufacturing processes, and customized production. Despite the promise of these technologies, their complexities in smart manufacturing present significant challenges, necessitating thorough exploration of technological, ethical, and legal considerations. A robust governance framework is crucial for the effective implementation and acceptance of AIoT in this field. This article examines the deployment of AI-controlled, IoT-enabled systems in manufacturing, providing an in-depth overview of AIoT’s role and addressing quintessential ethical and regulatory challenges. By tackling these issues, the research offers valuable recommendations for stakeholders committed to advancing innovative AIoT systems in smart manufacturing.