The rapid growth of digital manufacturing technologies represents a significant shift in the industrial world. It marks the shift from Industry 4.0 to Industry 5.0, a new model that focuses more on human-centered design, integrates AI, and enhances collaboration between people and machines. As industries evolve, it’s essential to understand the key differences between these two paradigms. Industry 4.0 primarily focuses on automating processes and sharing data between machines. Industry 5.0, on the other hand, aims to integrate technology and human input in a way that fosters collaboration and prioritizes efficiency, sustainability, and workforce well-being. This chapter examines the evolution of digital manufacturing in this context, with a focus on the shift to Industry 5.0 and its impact on the manufacturing process, particularly through the application of human-centered design principles. In this new framework, AI plays a key role in enhancing operational efficiency, maximizing resource utilization, and promoting sustainable practices. All of these are necessary for dealing with the complex problems of modern production. Additionally, the evolving relationship between people and machines is being rethought, with an emphasis on utilizing new technologies to facilitate collaboration while maintaining a human touch. Adopting Industry 5.0 strategies has a significant impact on the economy, altering global supply chains, driving economic growth, and transforming the job market. However, the transition isn’t easy; companies must address problems that arise during implementation while also capitalizing on the numerous opportunities for growth and innovation that Industry 5.0 presents. This chapter’s goal is to shed light on the numerous ways that digital manufacturing impacts the global economy and the need for industries to adapt to this new approach as they shape the future of manufacturing.