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A robotic arm gets to work at German manufacturer Rittal’s smart factory in Haiger, to the west of Hesse, Germany.

Rittal

Conversational artificial intelligence that can be used to communicate with equipment and generate machine parts. Digital versions of vehicles and planes that can be modified to fine-tune their physical counterparts. And autonomous robots that move as you walk by.

These are just a few of the technologies that will power the factories of the future, according to technologists and industry experts who spoke with CNBC.

In the future, factories will be much more connected, relying on a mix of technologies, from artificial intelligence, data platforms and edge devices to the cloud, robotics and sensors, Goetz Erhardt, Europe lead for Accenture’s digital engineering and manufacturing division, told CNBC.

“These technologies support fully automated, ‘dark’ plants, automated decision-making, enhanced equipment monitoring, and new production networks with recycling and upcycling capabilities,” Erhardt said via email.

Today’s factories — from those used in machinery and automobiles to food processing plants — have progressively become more advanced with regard to adopting technology. Robotic arms involved in the manufacturing process — adding and removing materials, welding and placing goods on pallets — are now a common sight.

More advanced A.I.

As much more advanced artificial intelligence technologies are added into the mix, the industrial manufacturing process could shake up further. Conversational systems such as OpenAI’s GPT could one day become integrated into robotics, enabling more sophisticated, emotionally intelligent machines.

Can China's ChatGPT clones give it an edge over the U.S. in an A.I. arms race?

“Generative AI (AI that makes new content in response to user inputs) has enormous potential in manufacturing for equipment optimization, interaction and intelligence — from robotic processes through to machining,” Simon Floyd, director of manufacturing and transportation industries at Google Cloud, told CNBC.

Google is among the tech world giants looking to capitalize on large language models, which can generate more humanlike responses thanks to the huge amounts of data they are trained on. The company launched its own AI chatbot Bard earlier this year to rival OpenAI’s ChatGPT.

Consumer products aren’t the only focus of Google’s AI efforts. The company recently upgraded its cloud platform for manufacturers to more efficiently pull data from machines and detect anomalies in the production process.

Going forward, AI will be able to “converse using natural language with manufacturing equipment to understand the current state and the predicted future performance — therefore assisting people and allowing them to focus on high value tasks,” Google Cloud’s Floyd told CNBC.

Floyd said that Google is already working to achieve this with natural language processing capabilities in its AI tools. The company has also created a language model for robots called PaLM-E, which gathers sensory information from the physical environment, as well as text-based inputs.

Engineers will eventually be able to develop new machinery using generative AI tools, Floyd said.

“In the future, there is potential to generate content from and for many types of manufacturing equipment, ranging from specific repair instructions to software code that is tailored to a specific asset.”

‘Digital twins’

One development many industrialists are excited about is “digital twins” — 3D digital replicas of objects in the physical world that can be modified and updated in parallel with the items they aim to mimic.

One example of a company using digital twins to aid its physical manufacturing is Rolls Royce, whose engineers create precise virtual copies of its jet engines and then install sensors and satellite networks on-board to feed back data to the digital copy in real time.

“For every modern Rolls Royce jet engine up on a plane in the sky, there’s one in the cyber sphere that needs to be maintained, working out how much stress is going through the plane,” said John Hill, CEO of Silico AI, a startup that focuses on digital twins for business processes. “That will depend on how the engine is faring in the atmospheric conditions and pressures in the air.”

Another example is Renault, which created a digital twin for a new “software-defined” car with artificial intelligence capabilities to enhance services.

The Metaverse is grappling with investment scale back

Digital twins form part of the so-called “metaverse,” which embodies the idea that people will spend more of their work and leisure time in huge 3D digital spaces. Some companies are also looking to incorporate the physical world in some iterations of the metaverse. 

Many manufacturers see potential in the “industrial metaverse,” a version of the metaverse tailored to the manufacturing, construction and engineering industries. Accenture’s Erhardt told CNBC that he is mainly seeing use cases in creative collaboration and product development, maintenance and remote repairs, designing and optimizing production operations, and workforce training

“The metaverse could become a game changer for industrial companies once they couple its collaborative, immersive, visual and intuitive dimensions with digital twins fed by integrated data pools across departments, systems, operations technology and IT,” Erhardt said. “This could create a virtual, fully immersive and intuitive simulation of the entire enterprise.”

Safety first

Companies are looking for ways to cut down on more menial tasks in factories with digital technology, amid a wave of labor shortages.

“Previously, automation has not been an option for manufacturing products due to minimal financial resources and investment,” Olivier Ribet, Executive Vice President, EMEAR at Dassault Systèmes, told CNBC.

“However, this is changing rapidly due to technological changes that have decreased costs and democratized automation through low/no code robotics allowing more manufacturing companies to leverage the advantages of automation in terms of precision, efficiency, and productivity.”

There are downsides to consider — not least of which job security — as the rise of AI and digital automation in factories has led to worries about the labor market. Generative AI, a relatively recent development, could erase 300 million jobs, Goldman Sachs estimates.

Still, history shows that technological progress doesn’t just make jobs redundant, it also creates new roles— which typically outpaces the number of jobs displaced. Manufacturers are still scrambling for staff, with 41% of manufacturing businesses citing talent pool as a “very significant” barrier preventing full potential, according to a Bain and Company survey.

The hope is that connecting machines to the internet and integrating sensors and predictive AI algorithms will allow them to more safely navigate their surroundings and work collaboratively with humans, rather than replace them, according to Maya Pindeus, CEO of AI startup Humanising Autonomy.

“Think of the factory, you have robot arms, you have different vehicles to move goods around, you have operators, you have safety cameras,” Pindeus told CNBC. 

“What I would look at in the factory of the future is you have high levels of safe automation that can operate around people … I’ve been to factories where you have the big robot arm caged up and it’s really far away from people. It looks very inefficient to me.”

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Inside a Utah desert facility preparing humans for life on Mars

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Inside a Utah desert facility preparing humans for life on Mars

Hidden among the majestic canyons of the Utah desert, about 7 miles from the nearest town, is a small research facility meant to prepare humans for life on Mars.

The Mars Society, a nonprofit organization that runs the Mars Desert Research Station, or MDRS, invited CNBC to shadow one of its analog crews on a recent mission.

MDRS is the best analog astronaut environment,” said Urban Koi, who served as health and safety officer for Crew 315. “The terrain is extremely similar to the Mars terrain and the protocols, research, science and engineering that occurs here is very similar to what we would do if we were to travel to Mars.”

SpaceX CEO and Mars advocate Elon Musk has said his company can get humans to Mars as early as 2029.

The 5-person Crew 315 spent two weeks living at the research station following the same procedures that they would on Mars.

David Laude, who served as the crew’s commander, described a typical day.

“So we all gather around by 7 a.m. around a common table in the upper deck and we have breakfast,” he said. “Around 8:00 we have our first meeting of the day where we plan out the day. And then in the morning, we usually have an EVA of two or three people and usually another one in the afternoon.”

An EVA refers to extravehicular activity. In NASA speak, EVAs refer to spacewalks, when astronauts leave the pressurized space station and must wear spacesuits to survive in space.

“I think the most challenging thing about these analog missions is just getting into a rhythm. … Although here the risk is lower, on Mars performing those daily tasks are what keeps us alive,” said Michael Andrews, the engineer for Crew 315.

Watch the video to find out more.

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Apple scores big victory with ‘F1,’ but AI is still a major problem in Cupertino

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Apple scores big victory with 'F1,' but AI is still a major problem in Cupertino

Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen 

Mike Segar | Reuters

Apple had two major launches last month. They couldn’t have been more different.

First, Apple revealed some of the artificial intelligence advancements it had been working on in the past year when it released developer versions of its operating systems to muted applause at its annual developer’s conference, WWDC. Then, at the end of the month, Apple hit the red carpet as its first true blockbuster movie, “F1,” debuted to over $155 million — and glowing reviews — in its first weekend.

While “F1” was a victory lap for Apple, highlighting the strength of its long-term outlook, the growth of its services business and its ability to tap into culture, Wall Street’s reaction to the company’s AI announcements at WWDC suggest there’s some trouble underneath the hood.

“F1” showed Apple at its best — in particular, its ability to invest in new, long-term projects. When Apple TV+ launched in 2019, it had only a handful of original shows and one movie, a film festival darling called “Hala” that didn’t even share its box office revenue.

Despite Apple TV+ being written off as a costly side-project, Apple stuck with its plan over the years, expanding its staff and operation in Culver City, California. That allowed the company to build up Hollywood connections, especially for TV shows, and build an entertainment track record. Now, an Apple Original can lead the box office on a summer weekend, the prime season for blockbuster films.

The success of “F1” also highlights Apple’s significant marketing machine and ability to get big-name talent to appear with its leadership. Apple pulled out all the stops to market the movie, including using its Wallet app to send a push notification with a discount for tickets to the film. To promote “F1,” Cook appeared with movie star Brad Pitt at an Apple store in New York and posted a video with actual F1 racer Lewis Hamilton, who was one of the film’s producers.

(L-R) Brad Pitt, Lewis Hamilton, Tim Cook, and Damson Idris attend the World Premiere of “F1: The Movie” in Times Square on June 16, 2025 in New York City.

Jamie Mccarthy | Getty Images Entertainment | Getty Images

Although Apple services chief Eddy Cue said in a recent interview that Apple needs the its film business to be profitable to “continue to do great things,” “F1” isn’t just about the bottom line for the company.

Apple’s Hollywood productions are perhaps the most prominent face of the company’s services business, a profit engine that has been an investor favorite since the iPhone maker started highlighting the division in 2016.

Films will only ever be a small fraction of the services unit, which also includes payments, iCloud subscriptions, magazine bundles, Apple Music, game bundles, warranties, fees related to digital payments and ad sales. Plus, even the biggest box office smashes would be small on Apple’s scale — the company does over $1 billion in sales on average every day.

But movies are the only services component that can get celebrities like Pitt or George Clooney to appear next to an Apple logo — and the success of “F1” means that Apple could do more big popcorn films in the future.

“Nothing breeds success or inspires future investment like a current success,” said Comscore senior media analyst Paul Dergarabedian.

But if “F1” is a sign that Apple’s services business is in full throttle, the company’s AI struggles are a “check engine” light that won’t turn off.

Replacing Siri’s engine

At WWDC last month, Wall Street was eager to hear about the company’s plans for Apple Intelligence, its suite of AI features that it first revealed in 2024. Apple Intelligence, which is a key tenet of the company’s hardware products, had a rollout marred by delays and underwhelming features.

Apple spent most of WWDC going over smaller machine learning features, but did not reveal what investors and consumers increasingly want: A sophisticated Siri that can converse fluidly and get stuff done, like making a restaurant reservation. In the age of OpenAI’s ChatGPT, Anthropic’s Claude and Google’s Gemini, the expectation of AI assistants among consumers is growing beyond “Siri, how’s the weather?”

The company had previewed a significantly improved Siri in the summer of 2024, but earlier this year, those features were delayed to sometime in 2026. At WWDC, Apple didn’t offer any updates about the improved Siri beyond that the company was “continuing its work to deliver” the features in the “coming year.” Some observers reduced their expectations for Apple’s AI after the conference.

“Current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high, in our view,” wrote Jefferies analysts this week.

Siri should be an example of how Apple’s ability to improve products and projects over the long-term makes it tough to compete with.

It beat nearly every other voice assistant to market when it first debuted on iPhones in 2011. Fourteen years later, Siri remains essentially the same one-off, rigid, question-and-answer system that struggles with open-ended questions and dates, even after the invention in recent years of sophisticated voice bots based on generative AI technology that can hold a conversation.

Apple’s strongest rivals, including Android parent Google, have done way more to integrate sophisticated AI assistants into their devices than Apple has. And Google doesn’t have the same reflex against collecting data and cloud processing as privacy-obsessed Apple.

Some analysts have said they believe Apple has a few years before the company’s lack of competitive AI features will start to show up in device sales, given the company’s large installed base and high customer loyalty. But Apple can’t get lapped before it re-enters the race, and its former design guru Jony Ive is now working on new hardware with OpenAI, ramping up the pressure in Cupertino.

“The three-year problem, which is within an investment time frame, is that Android is racing ahead,” Needham senior internet analyst Laura Martin said on CNBC this week.

Apple’s services success with projects like “F1” is an example of what the company can do when it sets clear goals in public and then executes them over extended time-frames.

Its AI strategy could use a similar long-term plan, as customers and investors wonder when Apple will fully embrace the technology that has captivated Silicon Valley.

Wall Street’s anxiety over Apple’s AI struggles was evident this week after Bloomberg reported that Apple was considering replacing Siri’s engine with Anthropic or OpenAI’s technology, as opposed to its own foundation models.

The move, if it were to happen, would contradict one of Apple’s most important strategies in the Cook era: Apple wants to own its core technologies, like the touchscreen, processor, modem and maps software, not buy them from suppliers.

Using external technology would be an admission that Apple Foundation Models aren’t good enough yet for what the company wants to do with Siri.

“They’ve fallen farther and farther behind, and they need to supercharge their generative AI efforts” Martin said. “They can’t do that internally.”

Apple might even pay billions for the use of Anthropic’s AI software, according to the Bloomberg report. If Apple were to pay for AI, it would be a reversal from current services deals, like the search deal with Alphabet where the Cupertino company gets paid $20 billion per year to push iPhone traffic to Google Search.

The company didn’t confirm the report and declined comment, but Wall Street welcomed the report and Apple shares rose.

In the world of AI in Silicon Valley, signing bonuses for the kinds of engineers that can develop new models can range up to $100 million, according to OpenAI CEO Sam Altman.

“I can’t see Apple doing that,” Martin said.

Earlier this week, Meta CEO Mark Zuckerberg sent a memo bragging about hiring 11 AI experts from companies such as OpenAI, Anthropic, and Google’s DeepMind. That came after Zuckerberg hired Scale AI CEO Alexandr Wang to lead a new AI division as part of a $14.3 billion deal.

Meta’s not the only company to spend hundreds of millions on AI celebrities to get them in the building. Google spent big to hire away the founders of Character.AI, Microsoft got its AI leader by striking a deal with Inflection and Amazon hired the executive team of Adept to bulk up its AI roster.

Apple, on the other hand, hasn’t announced any big AI hires in recent years. While Cook rubs shoulders with Pitt, the actual race may be passing Apple by.

WATCH: Jefferies upgrades Apple to ‘Hold’

Jefferies upgrades Apple to 'Hold'

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Musk backs Sen. Paul’s criticism of Trump’s megabill in first comment since it passed

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Musk backs Sen. Paul's criticism of Trump's megabill in first comment since it passed

Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.

Kevin Dietsch | Getty Images

Tesla CEO Elon Musk, who bombarded President Donald Trump‘s signature spending bill for weeks, on Friday made his first comments since the legislation passed.

Musk backed a post on X by Sen. Rand Paul, R-Ky., who said the bill’s budget “explodes the deficit” and continues a pattern of “short-term politicking over long-term sustainability.”

The House of Representatives narrowly passed the One Big Beautiful Bill Act on Thursday, sending it to Trump to sign into law.

Paul and Musk have been vocal opponents of Trump’s tax and spending bill, and repeatedly called out the potential for the spending package to increase the national debt.

On Monday, Musk called it the “DEBT SLAVERY bill.”

The independent Congressional Budget Office has said the bill could add $3.4 trillion to the $36.2 trillion of U.S. debt over the next decade. The White House has labeled the agency as “partisan” and continuously refuted the CBO’s estimates.

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The bill includes trillions of dollars in tax cuts, increased spending for immigration enforcement and large cuts to funding for Medicaid and other programs.

It also cuts tax credits and support for solar and wind energy and electric vehicles, a particularly sore spot for Musk, who has several companies that benefit from the programs.

“I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote in a social media post in early June as the pair traded insults and threats.

Shares of Tesla plummeted as the feud intensified, with the company losing $152 billion in market cap on June 5 and putting the company below $1 trillion in value. The stock has largely rebounded since, but is still below where it was trading before the ruckus with Trump.

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Tesla one-month stock chart.

— CNBC’s Kevin Breuninger and Erin Doherty contributed to this article.

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