ARTIFICIAL INTELLIGENCE AS A FORCE MULTIPLIER IN INDUSTRIAL MANUFACTURING: A CONCEPTUAL FRAMEWORK FOR ORGANISATIONAL CAPABILITY ENHANCEMENT

Abstract

Artificial Intelligence (AI) is reshaping industrial manufacturing by moving organisations beyond conventional automation toward intelligent, connected and increasingly adaptive production systems. The significance of AI extends beyond the substitution of individual tasks. When integrated with organisational data, digital infrastructure, physical assets, human expertise and managerial processes, AI can amplify the productive value of existing resources. This theoretical article develops the proposition that AI can function as a new force multiplier for industrial manufacturing organisations. Drawing on the Resource-Based View, Dynamic Capabilities perspective, Socio-Technical Systems Theory and the Knowledge-Based View, the article synthesises literature on AI, Industry 4.0, smart manufacturing, human–machine collaboration and digital transformation. The article examines AI applications across the manufacturing value chain, explains the transition from automation to augmentation, identifies five dimensions of AI force multiplication, and develops an AI Force Multiplier Mechanism linking data, intelligence, human and machine augmentation, decision enhancement and organisational learning. A conceptual framework is proposed in which AI capability transforms existing organisational resources into enhanced operational and strategic capabilities. Seven theoretical propositions are advanced concerning AI integration, human augmentation, data-to-decision capability, operational agility, organisational readiness, governance and continuous learning. The article concludes that the strategic significance of AI lies less in technology adoption itself and more in its capacity to multiply the effectiveness of people, machines, data, knowledge and organisational processes.