In today’s rapidly changing industrial world, AI-driven automation is no longer just a part of the future. It is happening. One of the most notable examples of this transformation is the rise of dark factories in China. These advanced factories are completely free of manual workers, even without traditional lighting. Instead, they rely on robots and artificial intelligence to run 24/7.
Companies like Xiaomi are at the forefront of this transformation, bringing manufacturing efficiency to a new level. However, as this technology continues to grow, it raises key questions about the future of work, the potential for work displacement, and how society can adapt to this new production method.
What is a dark factory?
The dark factory is a fully automatic production facility without human workers. the term Dark Factory From the fact that these facilities do not require traditional lighting, as there are no humans on the factory floor. Instead, advanced machines, AI systems and robotics manage all aspects of production, including assembly, inspection and logistics. This setup eliminates human errors, reduces labor costs, and allows continuous operation without breaking or fatigue.
Xiaomi’s changing smart factories illustrate this new manufacturing paradigm in China. The factory produces a smartphone every second using AI and robotics to achieve excellent efficiency and accuracy. Xiaomi invested about $330 million in the facility, which spans 81,000 square meters and has an annual capacity of 10 million equipment. The factory integrates a spontaneous AI system for real-time monitoring and automatic maintenance, such as dust removal.
China’s broader advances in automation coincide with China’s 2025 strategy, which aims to establish the country as a global leader in high-tech manufacturing. According to the International Federation of Robotics Technology (IFR), in 2022 alone, 290,367 industrial robots were installed, accounting for 52% of the global total. This reflects China’s commitment to using AI and robotics to transform its manufacturing industry.
In China, the rise of dark factories powered by automation and artificial intelligence has revolutionized the manufacturing process and supported China’s broader environmental goals. Integrating AI and robotics in these plants is expected to significantly improve energy efficiency. Automation helps simplify operations, reducing the need for human-centric infrastructure such as lighting, heating and disrupted areas, ultimately resulting in reduced energy consumption. This coincides with China’s carbon neutral targets in 2060, as automation in the industrial environment is a key factor in improving overall energy efficiency across the sector.
The rise of AI-driven automation in China
China has become a global leader in industrial automation, driven by its efforts to adopt advanced technologies such as AI, robotics and intelligent manufacturing. The government has invested heavily in these regions to promote the country’s manufacturing capacity and remain competitive in the ever-changing global markets.
As of 2023, China’s robot density reached 470 robots per 10,000 manufacturing workers, much higher than the global average of 162 robots per 10,000 employees. Companies like Foxconn and Bead are leading the transformation. For example, Foxconn replaced 60,000 workers in its Kunshan factory in 2016 and has automated 30% of its operations. Similarly, major electric car manufacturer Byd uses robots to assemble electric batteries and chassis in factories in Shenzhen and Xi’an.
This transformation has become supported by a large amount of government investment. In 2023 alone, China spent $1.4 billion on robot research and development, thus accelerating the development of automation.
However, the rapid adoption of automation has raised concerns, especially for unemployment. Currently, manufacturing employs more than 100 million employees in China, many of which can be replaced by robots. A 2017 Oxford Economics report predicts that robots could lose 12 million manufacturing jobs by 2030. This presents a huge challenge as many workers may not have the skills to transition to new roles in an evolving economy.
Adapting to the future of work: The impact of AI-driven automation on work
The dark factory quickly became one of the most compelling signs of AI-driven automation in which human workers were completely replaced by machines and AI systems. These fully automated factories operate 24/7 without lighting or manual intervention and are changing industries around the world. Although China leads the implementation of dark factories, this transformation is taking place globally in electronics, automobile manufacturing and customer service. Companies such as Xiaomi and Foxconn use AI and robotics to improve efficiency, reduce labor costs and continue to operate without human workers.
One of the most important consequences of this automation is work displacement. Many manufacturing, logistics and customer service workers are at risk of losing their jobs because machines take over what humans once accomplished. The World Economic Forum predicts that automation could lose up to 83 million jobs by 2027, especially in assembly lines and warehouses.
While automation is eliminating some work, it is also creating new opportunities. The roles in AI programming, robotics maintenance and data analysis are expected to grow. The World Economic Forum predicts that by 2027, 69 million new jobs will be created in regions such as green energy and technology. However, the main challenge is ensuring workers transition to these new roles. This will require substantial investment in education and retraining programs to help workers acquire the skills they need for an AI-driven economy.
One of the biggest challenges of this transition is the skill gap. As automation grows, many workers must be retrained in new roles. For example, jobs that require manual labor will be replaced by machines, while jobs that require creativity, problem-solving and technical expertise will become even more critical. To ensure workers are successful, businesses and governments must invest in training programs to help them acquire these new skills.
Looking ahead, the future of work may involve the joint efforts of humans and machines. Robots and artificial intelligence will handle repetitive tasks, but humans still need to be done for work that requires creativity, emotional intelligence and decision-making. Governments and businesses must focus on education and training programs to help workers learn to work with AI to ensure a smooth transition to this new way of working. Investing in these programs ensures workers are prepared for change and can thrive in an AI-driven economy.
Bottom line
AI-driven automation is transforming manufacturing, especially in China’s dark factories. Although these advancements have brought considerable improvements in efficiency and cost reduction, they have attracted important attention to work displacement, skills gaps and social inequality. With the growing automation, it is crucial for businesses, governments and workers to work together to find solutions that ensure equitable sharing of benefits.
The future of work will require a balance between technological advancement and human potential. By focusing on re-applying workers, promoting AI ethics and encouraging collaboration between humans and machines, we can ensure that automation can enhance human labor rather than replace human labor.
