The paper shows that technology and manufacturing are the sectors with the greatest potential for transformation through artificial intelligence. The use of artificial intelligence to process projects can dramatically increase the number and significantly improve the quality of production through digital analysis of market demand from the environment. The information system can act as a formalized tool for methodological support of the continuous process of improving the properties of the network production system. Artificial intelligence in modern companies can increase productivity and reduce production losses by more accurately forecasting the necessary parameters of production. The most general critical challenges of transformation of the information and communication nature of management of modern production systems are revealed. Digital duplicates of equipment and processes allow to make decisions taking into account all operating factors on the basis of fuzzy parameters. It is established that to create digital duplicates it is necessary to combine such technologies as system modeling based on wave physical processes and machine learning. Innovative activity at different levels leads to a sharp increase in the intensification and speed of interaction between its participants, as well as to the creation of relevant at a certain time for consumers products and services of the required quality and quantity, exceeding customer expectations through the use of artificial intelligence. However, the role of artificial intelligence systems in innovation in a plurality of subjects with heterogeneous systems for determining the purpose and motives of behavior, inaccuracy and dynamism of their goals and objectives is insufficiently studied. The development and widespread use of artificial intelligence in production processes, changes the usual idea of human functions. Changing the nature of work in production systems using artificial intelligence will affect all employees of all skill levels. This in turn will have profound implications for the structure of the workplace and the organization of work. Therefore, the paper provides a list of tasks for the introduction of artificial intelligence in modern engineering. Now cyber-physical systems provide such intellectual spheres of production as autonomous works, augmented reality, augmented production, vertical and horizontal integration, implementation of principles of intersectoral integration of artificial intelligence systems in various scientific fields, from natural and exact sciences to humanities. Given the available intellectual potential, in the near future Ukraine may become a regional leader in these areas, providing comprehensive and high-tech engineering services.