Artificial Intelligence (AI) is THE topic of the hour - praised to solve the most pressing problems of humankind while at the same time damned as the end of civilization as we know it. In manufacturing, every company today has been told by service providers, vendors, and the media that they need to invest in AI or face certain failure. At the same time, there is a lack of understanding of what 'AI' actually means and how it can create real value in a manufacturing and digital supply network context. In this presentation, I will provide an overview of AI in Smart Manufacturing Systems, from the basics and its history, to how it is applied, what the challenges are, how it can create value, providing a few real-life examples, and ending with a few concrete recommendations how to successfully approach the topic for your specific situation. (This presentation is based on the presenter's brand-new book 'Digital Supply Networks' by McGraw-Hill - www.digitalsupplynetwork.com)