In a significant move to advance AI-driven manufacturing solutions, Microsoft Corp., in partnership with the Wisconsin Economic Development Corporation (WEDC), the University of Wisconsin-Milwaukee (UWM), and TitletownTech, has officially launched its AI Co-Innovation Lab on the UWM campus. This facility marks Microsoft’s first lab focused exclusively on manufacturing innovation.
The unveiling of the lab comes a year after Microsoft’s transformative $3.3 billion investment aimed at strengthening AI infrastructure in Wisconsin. Operating over the past year from a temporary location on the UWM campus, the lab has already collaborated with several Wisconsin-based companies to co-develop tailored AI solutions.
Early projects showcase AI’s tangible impact across industries. Local manufacturers and businesses are leveraging AI to tackle real-world challenges, including real-time fault detection in industrial machinery and multilingual voice assistants enhancing logistics workflows. Others are using AI to forecast supply chain lead times, automate hydroponic farming systems, and offer proactive customer service.
Although the lab is grounded in manufacturing, its reach spans across sectors — from startups and SMEs to large enterprises and academic institutions. This reflects the diverse expertise and expansive network of its founding partners: Microsoft, WEDC, UWM, and TitletownTech.
“A year ago, alongside our $3.3 billion infrastructure investment, we committed to using the power of AI to help advance the next generation of manufacturing companies, skills and jobs in Wisconsin and across the country,” said Rima Alaily, corporate vice president and general counsel, infrastructure legal affairs at Microsoft. “Thanks to our partnership with WEDC, TitletownTech and UWM, we’re delivering on this commitment. With access to cutting-edge AI technology and technical guidance to bring their ideas to life, we can’t wait to see what Wisconsin companies will build.”
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“Through the strength of this partnership between Microsoft, TitletownTech, UWM and WEDC, the AI Co-Innovation Lab is helping businesses of all sizes and across all sectors apply the power of AI to their daily operations,” said Missy Hughes, secretary and CEO of Wisconsin Economic Development Corporation. “This is an exciting new chapter for our state — and for the world.”
“This lab will have a profound impact on our faculty members’ and our students’ ability to drive innovation and prepare their careers,” said University of Wisconsin-Milwaukee Chancellor Mark Mone. “Harnessing the power of AI and cloud technologies will help Wisconsin manufacturers advance their competitive edge while offering students hands-on, real-world experience.”
“The lab brings a startup mindset to industry by moving fast, building with purpose and focusing on outcomes,” said TitletownTech Managing Partner Craig Dickman. “As AI becomes foundational to every sector, building fluency is critical not just for innovation but for staying competitive.”
The AI Co-Innovation Lab provides businesses with a collaborative environment to accelerate AI adoption. Participating teams work alongside UWM or TitletownTech to identify impactful use cases and co-innovate with Microsoft engineers to design and implement AI-powered solutions.
The lab offers flexible engagement models, including full prototyping sprints where teams develop functioning solutions using Microsoft’s AI and cloud platforms, as well as design sessions focused on architecture and feasibility. This adaptable approach empowers organizations of all sizes to harness AI for operational efficiency, strategic growth, and sustained innovation.