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This empirical study, “Augmented Reality and Artificial Intelligence in Smart Manufacturing,” reveals how these two technologies are revolutionizing the manufacturing industry. The results, which are based on real data, highlight the significant effects of integrating AI and AR. Notably, after installation, productivity indicators saw an average improvement of 8.5% across production lines, highlighting the effectiveness of AR and AI in improving production operations. Furthermore, the average number of completed product faults dropped by 3.5, demonstrating the effectiveness of AI and AR in quality control. The average 47.5% decrease in repair requests highlights the predictive maintenance's potential for cost savings made possible by AR and AI. The relevance of AR and AI as critical factors influencing productivity, quality, and affordability in smart manufacturing is further supported by this empirical data.