To win the AI race, we must not throttle manufacturing innovation

October was National Manufacturing Month, a reminder that we must not forget how crucial manufacturing is to our state’s economy. It employs over 60,000 people in the Rochester area alone and over 12.7 million workers across New York.

Fluid and dynamic, the industry constantly evolves as priorities shift, new markets emerge, and technology advances. It’s no surprise, then, that artificial intelligence—a force transforming daily life and reshaping global competition—is now central to manufacturing’s continued success.

A 2024 survey found that 72 percent of manufacturers now use AI to reduce costs and improve operational efficiency. The technology is a powerful force multiplier, enabling businesses to develop products more quickly while maintaining the high quality expected of American-made goods.

AI allows manufacturers to remain competitive and flexible as market demands continually shift.

But just as manufacturers rely on artificial intelligence, AI innovation depends on manufacturing. Why? Manufacturers produce the semiconductors to power the chips that make AI possible. You can’t have one without the other. If America wants to bolster AI, it must invest in manufacturers.

The Rochester region has been selected to lead the charge as part of the NY SMART I-Corridor Tech Hub—a collaboration that will help the Buffalo, Rochester, and Syracuse regions become global leaders in semiconductor manufacturing. Just last year, the hub received $40 million in funding from the U.S. Economic Development Administration to further strengthen our growing chip-making industry.

We’re attracting some of the nation’s top talent for research, development, and workforce training. State Sen. Jeremy Cooney echoed that sentiment, saying, “The NY SMART-I Corridor sets not only our region, but surrounding upstate communities on a path to become a national and global leader in technology development.”

But that tech leadership faces increasingly stiff international competition. China, for instance, has invested nearly $100 billion to fund its own semiconductor industry and AI startups. American manufacturing has the advantage, but we can’t get complacent. Fortifying our domestic chip supply and semiconductor development is necessary to maintain American leadership in technology and national security. It reduces our dependence on imports, allowing U.S. manufacturers to improve AI systems without potential foreign interference.

Equally crucial is cultivating a pro-innovation regulatory environment. Operating in the U.S. is already expensive—a reality that has driven many manufacturers abroad. The more restrictive regulations enacted in Albany or Washington, the more business prospects we risk losing. And the more opportunities we miss, the more fragile our competitive edge becomes.

Modern chip fabrication relies on AI for logistics, automation, and quality control. Excessive or inconsistent regulations that slow AI development impact every layer of the supply chain, making it harder for U.S. producers to compete globally.

On the issue of AI regulations, the United States has reached a crossroads.

All 50 states have introduced legislation to regulate the development of AI, totaling more than 1,100 bills. New York’s RAISE Act is one such example. Having passed both chambers of the state Legislature, the bill now awaits Gov. Kathy Hochul’s approval. But state-level bills like these could create real challenges.

Much of the legislation we’ve seen is unnecessary, as it addresses concerns already covered by strong state and federal laws. Worse, these bills would create a confusing, fragmented patchwork of AI regulation, which would create a compliance nightmare that could deter technology and manufacturing companies from choosing New York and the U.S. as their home.

The solution isn’t a maze of conflicting regulations, nor is it an entirely hands-off approach. Instead, we need a unified federal framework—a set of clear, commonsense guardrails that encourage responsible innovation without stifling progress. Establishing consistent rules of the road would inspire economic growth, attract top tech talent, and strengthen domestic chip manufacturing.

If we want to win the AI race, we must empower the sectors that make it possible. The U.S., with the Buffalo-Rochester-Syracuse region at the epicenter, can bolster its technological edge in the AI race. But we must invest in cutting-edge manufacturing, streamline our AI regulations, and produce the world’s most advanced chips here at home. Manufacturing Month is more than an annual event––it’s a call to action.

Bob Coyne is the executive director of Rochester Technology and Manufacturing Association.

The Beacon welcomes comments and letters from readers who adhere to our comment policy including use of their full, real name. See “Leave a Reply” below to discuss on this post. Comments of a general nature may be submitted to the Letters page by emailing [email protected].