ARTIFICIAL INTELLIGENCE AS A TOOL FOR DEVELOPING INNOVATION IN MECHANICAL ENGINEERING

Abstract

The article examines Artificial Intelligence (AI) as a strategic tool for innovative development of the Ukrainian machine-building sector under wartime challenges and post-war recovery. Machine building, once the backbone of national industry, faced severe losses in 2022–2023: its share dropped to 7–8%, exports fell by over 35%, production facilities reached critical depreciation, and skilled personnel outflow increased. Integration of AI is viewed as a modernization factor that can enhance efficiency and competitiveness. The paper reviews global experience (Germany, USA, Japan, China), showing that AI raises productivity by 20–30%, reduces downtime by up to 50%, and lowers defects by 25–30%. Based on these outcomes, promising directions for Ukraine include predictive maintenance, energy and process optimization, automated quality control via computer vision, digitalized supply chains, cybersecurity, generative design, and green engineering. An economic model to assess AI impact combines profit growth and cost reduction. It was tested on Pozhmashina, Tital, MAN Ukraine, AutoKrAZ, and Validus, specializing in fire-fighting and special-purpose vehicles. Results show annual economic effect of 49–75 million UAH, with ROI of 30–45.3%. Forecasting suggests productivity growth of 37–52% within three years after AI adoption. Findings confirm that AI acts not only as a process optimization tool but also as a strategic driver for Ukraine’s recovery. Intelligent systems strengthen resilience of machine building, expand export potential, and facilitate integration into global value chains. The study stresses the need for a state-level digitalization strategy, stronger public–private partnerships, business–academia collaboration, and investments in AI-driven innovation. These results provide a foundation for shaping economic policy and practical solutions in digital transformation of industry.