The rapid advancement of Artificial Intelligence (AI) has profoundly impacted the manufacturing industry, offering transformative potential to enhance production process efficiency. This paper presents a systematic literature review of AI applications in the manufacturing sector, focusing on key AI technologies such as machine learning, robotics, predictive analytics, and natural language processing. The review highlights how these technologies have improved quality control, resource management, and overall operational performance. However, the adoption of AI also presents challenges, including significant investment costs, the need for a skilled workforce, and concerns over data security and privacy. Despite these challenges, the integration of AI in manufacturing presents numerous opportunities for future research and innovation, particularly in the areas of sustainable manufacturing and the convergence of AI with other emerging technologies. This study concludes that while AI offers substantial benefits for production efficiency, its successful implementation requires careful strategic planning and investment in both technology and human resources.