MILWAUKEE (NBC 26) — Microsoft's huge investment in Wisconsin is no longer a plan; it's reality. The new AI Co-Innovation Lab at UW-Milwaukee is officially open, designed to help local manufacturers work more efficiently using artificial intelligence.
The lab is part of a $3.3 billion investment Microsoft is making in Wisconsin aimed at helping businesses — especially manufacturers — use AI to work smarter.
Joe Hammond, from the UW-M Connected Systems Institute, a manufacturing demonstration at the lab shows just one way AI can help manufacturers spot and solve problems, fast.
"It's a real-time feedback loop in the manufacturing facility—without shutting things down—where artificial intelligence can fix the problem," Hammond said.
That means fewer defects, less waste, and lower costs for manufacturers.
"We make fewer parts that fail, so our cost of poor quality goes down—and our profits go up," Hammond said.
Catherine Klause, an expert on AI engineering at TitletownTech, says the new lab is open for all Wisconsin businesses that want to learn how to work more efficiently.
"They're working hand in hand with Microsoft AI engineers. And by the time we finish with the prototyping, they actually have it functioning the way that they want to," Klause said.
There's no consulting fee, but Microsoft is playing the long game — helping companies learn its AI tools while growing future customers.
"You're going to have to make sure you have the different subscriptions and things to build your prototype. But very, very minimal cost," Klause said.
And as Wisconsin manufacturers learn, Microsoft does too.
"I guess you may ask, what do we get out of it? Well, we're taking kind of, how does AI work, and how does it work efficiently with that company? So for us, it's a lot of learning that we can take back almost a research mechanism," said Mike Egan, General Manager of Microsoft Tech Spark.
The lab is now open and accepting applications – first come, first served.
Microsoft's AI tools may help businesses run more efficiently, but supporters say the bigger win could be Wisconsin's future.
"We can create new businesses solving new meaningful problems using technologies, and at the same time helping existing companies that are here transform how they're working to be competitive. The combination of those two really creates the opportunity for this to be an economic powerhouse," said Craig Dickman, Managing Partner at TitletownTech.
There are 9,000 manufacturing businesses in Wisconsin. Any one of them can take advantage of Microsoft's AI Co-Innovation Lab by applying. A link to the application process can be found HERE.
The Co-Innovation Lab is just one part of Microsoft's $3.3 billion investment in Wisconsin:
- A massive cloud and AI data center campus is set to open in Mount Pleasant in 2026.
- There's also a statewide skilling initiative — training more than 100,000 Wisconsin residents in AI —
- A new partnership with Gateway Technical College will create a Data Center Academy to train the next generation of IT workers.
*This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
