Abstract
Digital transformation is redefining the global manufacturing industry by integrating cutting-edge technologies such as artificial intelligence (AI), Internet of Things (IoT), cloud computing, and cyber-physical systems. These innovations promise increased productivity, improved quality control, enhanced supply chain efficiency, and real-time decision-making capabilities. However, they also bring risks such as cybersecurity threats, high implementation costs, workforce displacement, and data privacy concerns. This paper examines the opportunities and associated risks of digital transformation in manufacturing, drawing upon real-world examples and global industry practices. The study further proposes strategies to optimize benefits while mitigating the inherent risks involved in this transition
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