This paper explores the evolution of industrial automation and AI's application in manufacturing, focusing on machine tool automation. It delves into its definition, characteristics, development trends, impact on production efficiency and quality, as well as existing challenges. AI applications in machine tool automation such as predictive maintenance, adaptive control, and intelligent optimization are discussed in detail, showcasing how AI enhances automation through examples. The study also touches upon the new production model combining AI with automation, exploring its implications for businesses and industry growth. In future outlooks, current study issues are highlighted alongside predictions for machine tool automation and AI's future, including potential challenges and solutions. Suggestions for policy makers and business decision makers are offered. Overall, this research underscores the significance of the new production model combining machine tool automation and AI in enhancing efficiency and industry development, despite existing challenges. Research limitations are acknowledged and future directions suggested.
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