Small and medium-sized enterprises (SMEs) in the manufacturing sector often struggle to make effective use of production data due to fragmented systems and limited digital infrastructure. This paper presents a case study of implementing an AI-enhanced digital twin in a custom sportswear manufacturing SME developed under the AI and Robotics Estonia (AIRE) initiative. The solution integrates real-time production data collection using the Digital Manufacturing Support Application (DIMUSA); data processing and control; clustering-based data analysis; and virtual simulation for evaluating improvement scenarios. The framework was applied in a live production environment to analyze workstation-level performance, identify recurring bottlenecks, and provide interpretable visual insights for decision-makers. K-means clustering and DBSCAN were used to group operational states and detect process anomalies, while simulation was employed to model production flow and assess potential interventions. The results demonstrate how even a lightweight AI-driven system can support human-centered decision-making, improve process transparency, and serve as a scalable foundation for Industry 5.0-aligned digital transformation in SMEs.

Today’s manufacturing companies have begun to increasingly use digital tools to increase their company production efficiency, to ensure a low-price level, high