Microsoft, Wisconsin Economic Development Corporation, University of Wisconsin-Milwaukee and TitletownTech officially open AI Co-Innovation Lab to accelerate manufacturing innovation

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Microsoft (NASDAQ:MSFT) has officially opened its first AI Co-Innovation Lab focused on manufacturing innovation at the University of Wisconsin-Milwaukee campus. The lab, established in partnership with the Wisconsin Economic Development Corporation (WEDC), UW-Milwaukee, and TitletownTech, follows Microsoft's $3.3 billion infrastructure investment in Wisconsin last year.

The facility helps businesses implement AI solutions through hands-on collaboration, offering both full prototyping sprints and design sessions. Local companies are already using Microsoft's AI technologies for various applications, including real-time fault detection in industrial machinery, multilingual voice assistants for logistics, and supply chain forecasting tools.

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Microsoft opens AI Co-Innovation Lab in Wisconsin, building on last year's $3.3B infrastructure investment to advance manufacturing through applied AI solutions.

Microsoft's new AI Co-Innovation Lab at the University of Wisconsin-Milwaukee represents a strategic expansion of the company's $3.3 billion infrastructure investment announced last year. This facility—Microsoft's first AI lab specifically focused on manufacturing innovation—demonstrates the company's targeted approach to industry-specific AI applications.

The lab has already shown practical impact through several manufacturing use cases, including real-time fault detection in industrial machinery and supply chain lead time forecasting tools. By focusing on practical, high-value AI implementations rather than theoretical research, Microsoft is positioning itself as an enabler of industrial transformation.

What makes this initiative particularly noteworthy is the multi-stakeholder collaboration model involving state economic development (WEDC), academia (UWM), and venture innovation (TitletownTech). This approach gives Microsoft both customer access and talent pipelines while embedding its technology into Wisconsin's manufacturing ecosystem.

For Microsoft investors, this represents continued execution on the company's broader AI commercialization strategy. Rather than just building infrastructure, Microsoft is actively driving adoption through these innovation hubs, potentially accelerating revenue from both cloud services and AI tools. By focusing on manufacturing—a sector with historically slower technology adoption but enormous efficiency improvement potential—Microsoft is targeting a vertical where AI can deliver measurable ROI.

The lab's flexible engagement model, supporting both full prototyping and design sessions, shows Microsoft's pragmatic approach to enterprise AI adoption—meeting organizations at their readiness level rather than pushing one-size-fits-all solutions.

MILWAUKEE, June 25, 2025 /PRNewswire/ -- Microsoft Corp., in collaboration with the Wisconsin Economic Development Corporation (WEDC), the University of Wisconsin-Milwaukee (UWM) and TitletownTech announced on Wednesday the opening of an AI Co-Innovation Lab on the UWM campus. This marks Microsoft's first AI Co-Innovation Lab with a dedicated focus on manufacturing innovation.

The lab's launch comes one year after Microsoft's landmark investment to build AI infrastructure in Wisconsin. Operating out of a temporary home on the UWM campus over the past year, the lab worked with a handful of companies from across Wisconsin to build AI solutions.

Recent engagements show how manufacturers and other organizations are using AI to solve real-world challenges. From real-time fault detection in industrial machinery to multilingual voice assistants that streamline gate, dock and yard logistics, local companies are working to apply Microsoft's AI technologies to improve operations and decision-making. Others are building tools to forecast supply chain lead times, manage hydroponic farms and deliver proactive customer support.

While the lab is rooted in manufacturing innovation, it works with organizations across industries, spanning small and medium-size businesses, enterprises, startups, and academia, reflecting the broad networks and experience of the lab's founding partners: Microsoft, WEDC, UWM and TitletownTech.

AI promises to drive innovation and boost productivity in every sector of the economy. The Co-Innovation Lab will ensure that Wisconsin is well positioned to capitalize on that opportunity and to serve as a model for applied innovation around the world.

"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."

"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 helps catalyze businesses toward AI adoption and acceleration through hands-on collaboration. Teams partner with either UWM or TitletownTech to define meaningful use cases and work directly with Microsoft engineers to explore and shape AI-driven solutions.

Depending on the need, the lab supports both full prototyping sprints, where teams build working solutions using Microsoft's cloud and AI technologies, and design sessions that focus on solution architecture and feasibility. This flexible model gives startups, manufacturers and enterprises the strategic and technical support to unlock new value, drive efficiency and move confidently into AI-powered innovation.

By equipping Wisconsin-based organizations with cutting-edge tools and talent, the lab ensures that the state is well positioned to compete and lead in an increasingly global, technology-driven economy.

Microsoft (Nasdaq "MSFT" @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more. 

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SOURCE Microsoft Corp.

FAQ

What is Microsoft's new AI Co-Innovation Lab in Wisconsin?

Microsoft's AI Co-Innovation Lab is a facility opened at the University of Wisconsin-Milwaukee campus, focused on manufacturing innovation and helping businesses implement AI solutions through hands-on collaboration.

How much did Microsoft invest in Wisconsin's AI infrastructure?

Microsoft made a $3.3 billion infrastructure investment in Wisconsin, announced one year prior to the lab's opening.

What types of AI solutions are being developed at Microsoft's Wisconsin lab?

The lab is developing solutions including real-time fault detection in industrial machinery, multilingual voice assistants for logistics, supply chain lead time forecasting, and proactive customer support tools.

Who are the partners involved in Microsoft's Wisconsin AI lab?

The lab is a collaboration between Microsoft, Wisconsin Economic Development Corporation (WEDC), University of Wisconsin-Milwaukee (UWM), and TitletownTech.

How does Microsoft's AI Co-Innovation Lab support businesses?

The lab offers both full prototyping sprints where teams build working solutions using Microsoft's cloud and AI technologies, and design sessions focusing on solution architecture and feasibility.