Artificial Intelligence (AI) uses big data to evolve better models, while Augmented Reality (AR) adds information to reality. Combining AI and AR realises digital twin models that virtually represents the physical attributes of a "real world" system in real-time. This course introduces the principles and concepts of applying AI and AR to manufacturing and operations that reduce operating costs and extend asset lifetime, including equipment, machines, lines, and even plants. Industry 4.0 has brought AI technologies, such as machine learning and data analytics, to manufacturing and operations that enable smart manufacturing and check orders, processes, and external factors in real-time. The collected information arms manufacturers with insights they can use to plan for diverse contingencies. Using AR in manufacturing and operations can provide a virtual representation of a real-world asset. This virtual representation is more than just a physical object model because it can continuously receive data input from the smart sensors embedded in the asset that provides a clearer picture of real-world performance and operating conditions to reduce costs. Manufacturers can also simulate the real-world environment for predictive maintenance.