Over the past few decades, intelligentization, supported by artificial intelligence (AI) technologies, has become an important trend for industrial manufacturing, accelerating the development of smart manufacturing. In modern industries, standard AI has been endowed with additional attributes, yielding the so-called industrial artificial intelligence (IAI) that has become the technical core of smart manufacturing. AI-powered manufacturing brings remarkable improvements in many aspects of closed-loop production chains from manufacturing processes to end product logistics. In particular, IAI incorporating domain knowledge has benefited the area of production monitoring considerably. Advanced AI methods such as deep neural networks, adversarial training, and transfer learning have been widely used to support both diagnostics and predictive maintenance of the entire production process. It is generally believed that IAI is the critical technologies needed to drive the future evolution of industrial manufacturing. This article offers a comprehensive overview of AI-powered manufacturing and its applications in monitoring. More specifically, it summarizes the key technologies of IAI and discusses their typical application scenarios with respect to three major aspects of production monitoring: fault diagnosis, remaining useful life prediction, and quality inspection. In addition, the existing problems and future research directions of IAI are also discussed. This article further introduces the papers in this focused section on AI-based monitoring in smart manufacturing by weaving them into the overview, highlighting how they contribute to and extend the body of literature in this area.