Several European Union initiatives aim to bolster the manufacturing industry's supply chain reliability by reducing dependency on distant suppliers, a vulnerability highlighted during the COVID-19 pandemic. Manufacturers are increasingly turning to generative AI (GenAI) to enhance productivity as they reshore production from lower-cost countries. The AI market in manufacturing is projected to grow significantly, yet its deployment faces challenges in compliance, integration with unique legacy systems, and workforce safety and training. Compliance with regulations like the EU AI Act is complex due to data privacy concerns, but AI can aid in achieving compliance by monitoring systems and streamlining documentation. Manufacturers also need AI that can operate effectively in real-time, mission-critical environments, which may require edge AI solutions to ensure data security and operational continuity. Integrating AI into the manufacturing sector is complicated by the specialized and often incompatible systems in use, necessitating tailored AI models to bridge these gaps. Scaling AI adoption is further hindered by siloed systems, but newer AI models and autonomous agents can help optimize operations and facilitate integration. The industry also faces talent and training gaps, with GenAI offering potential to improve productivity and training, emphasizing the need for manufacturers to work with expert partners to develop custom AI solutions that address their specific needs.