Review of How AI-Driven Technologies Enhance Productivity, Optimize Resource Utilization, and Foster Innovation in Industrial Sector

Abstract

The application of Artificial Intelligence (AI) in energy, science and technology has become a key driver for the development of smart industry and economic changes in the digital age. In this research, we conduct a systematic review of the literature to explore the impacts of AI-powered technologies on improving productivity, resource efficiency, and innovation in major industrial domains. Using a Systematic Literature Review (SLR) approach, the research examined relevant publications from 2019 to 2026 to highlight key trends, use cases, and challenges relating to the use of AI. The results show that AI enhances industrial productivity through the use of smart manufacturing, predictive maintenance, energy-efficient systems and data analytics for decision-making. Moreover, AI fosters economic development through innovative business models, skill development, and sustainable practices through energy efficiency and environmental monitoring. But the research also highlights key challenges such as barriers to infrastructure development, data security, energy-intensive AI operations and potential job losses. However, the findings verify AI as a disruptive technology that can bring sustainable industrial development and economic resilience. The reseach finds that targeted investments in digital infrastructure, policy support and human resource development are crucial to taking full advantage of the potential of AI to advance smart industry and transform economies, especially in emerging markets.