AI & the Future of Manufacturing Work: Key Takeaways from Our Recent Panels

Last week, we hosted two panel discussions exploring how AI is shaping the future of manufacturing—and what it actually means for small businesses today.

We were joined by an incredible group of panelists: Sourish Jasti of Physical Intelligence and Vikas Choudhary of Myto, alongside representatives from the California Office of the Small Business Advocate (CalOSBA), Clair Whitmer and Jermaine Carter-Gibson. 

The goal of these conversations was simple: cut through the hype and help manufacturers understand where AI stands today, and how (and when) it might make sense to adopt it.

A few key themes emerged:

1. AI isn’t replacing manufacturing jobs—it’s addressing a labor gap

While headlines often focus on job loss, panelists emphasized that many manufacturers are struggling to find and retain skilled workers. In this context, AI is better understood as a productivity tool that can support existing teams, not replace them.

2. Start with the problem, not the technology

One of the strongest takeaways: AI is not a silver bullet. Businesses should resist adopting it just because of hype, and instead focus on specific pain points—like onboarding new employees, reducing machine downtime, or improving documentation—and assess whether a tool actually improves speed, quality, or cost in those areas.

3. Practical applications are already here

From AI-powered robots that can adapt to variability on the production floor, to tools that capture “tribal knowledge” from experienced workers, panelists shared real-world examples of how AI is being used today. These technologies are still early, but evolving quickly.

Myto is translating hands-on operator knowledge into usable training and process guidance, while Physical Intelligence is showing how general-purpose robots can learn and complete real-world tasks like box folding and material handling in dynamic environments.

4. Barriers to adoption are real

Cost, uncertainty, and workforce readiness came up repeatedly. Many small manufacturers are asking: Is this the right tool for me? Will it disrupt what’s already working? Do we have the capacity to implement it? These are valid concerns, and a reminder that adoption should be thoughtful, not rushed. 

At the same time, there are increasingly low-barrier ways for businesses to start experimenting with AI—like using it to draft and standardize SOPs, support employee onboarding materials, or improve internal documentation before ever investing in more complex tools. Starting with small, specific workflows allows manufacturers to see value early, learn what actually works in their environment, and build confidence before scaling further.

5. Learning comes before investing

For businesses looking to explore AI, the advice was clear: start by building understanding. SFMade is committed to creating accessible entry points for manufacturers to learn about AI in a practical, grounded way. Our programming is designed to help businesses cut through the noise, ask questions, and explore adoption at their own pace.

California also offers a range of free resources, including the CalOSBA Scale network, which provides one-on-one advising to help businesses evaluate new technologies and make informed decisions.

Stay tuned for future workshops, facility tours, and discussions on what’s next for manufacturing in the age of AI!