Digital transformation is changing the manufacturing industry by focusing on customer experience, innovation, and service-based business models. Manufacturers are using AI and IoT technologies to enhance customer experience, innovate faster through connected products and services, and create new service-based revenue streams. These technologies help optimize production processes, enable real-time decision making, improve safety, and provide predictive maintenance to reduce costs and increase efficiencies. Reference architectures on Azure show how AI and IoT can be applied to remote monitoring, predictive maintenance, and connected field service to transform factories of the future.