$70 million program seeks to integrate AI in manufacturing processes

The National Institute of Standards and Technology (NIST) is making $70 million in grants available to bring artificial intelligence to manufacturing to fortify America’s industrial backbone. The initiative, announced Monday, seeks to establish a new Manufacturing USA institute focused on leveraging AI to enhance the resilience of U.S. manufacturers over a five-year period.

The Notice of Funding Opportunity (NOFO) comes as the U.S. grapples with how to harness the positive uses of AI while reining in its dangers. Simultaneously, a host of policies and funding initiatives have sought to breathe new life into the nation’s manufacturing sector. The new institute aims to forge cutting-edge AI technologies into tools that can help make American factories more cost-effective, streamlining supply chains, and arming industry against unforeseen disruptions.

“AI has enormous potential to make us smarter, faster and more innovative, but we have to work together to maximize its benefits and mitigate its risks,” U.S. Secretary of Commerce Gina Raimondo said in a press release. “Through this new AI-focused Manufacturing USA institute, we will help leverage AI to supercharge manufacturing, empower our workforce and create secure, resilient supply chains.”

The grant program is in partnership with Manufacturing USA, a national network of institutes that serves as a bridge between academic research and industrial application. Funded by the Department of Commerce, this new AI-focused institute will join a constellation of existing centers, each specializing in different facets of advanced manufacturing.

Prospective applicants face a two-stage process. The deadline for initial concept papers is Sept. 30. Those who clear this hurdle will advance to submit full proposals by January 2025. NIST plans to host an informational webinar and an in-person event, with details to come on the agency’s website.

The potential uses of AI in manufacturing vary, each with potential to transform the sector. From predictive maintenance systems that can foresee equipment failures before they occur, to AI-powered supply chain optimization that can navigate global disruptions, the possibilities stretch beyond the assembly line. Digital twins, AI-driven virtual replicas of physical systems, could allow manufacturers to prepare for crises before they materialize.

This initiative aligns with the White House’s broader AI strategy, outlined by executive order in October, which seeks to thread the needle between fostering innovation and mitigating potential risks. The White House policy on AI has also identified manufacturing as a key area in which AI has potential benefits.

Public-private partnerships form the bedrock of this program, following the model of existing Manufacturing USA institutes. With $70 million set to go toward a newly formed institute, a handful of existing programs provide a model for what an AI manufacturing project looks like. The ARM Institute in Pittsburgh, for instance, integrates robotics and AI across various disciplines, while MxD in Chicago equips factories with digital tools and cybersecurity expertise.

“We look forward to reviewing innovative proposals that will help domestic manufacturers maximize the potential of AI,” said NIST Director Laurie Locascio. “This new Manufacturing USA institute will strengthen the U.S. economy by helping manufacturers make smart use of AI to boost their productivity and increase their resilience.”

Photo by Simon Kadula on Unsplash

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