This study explores the influence of Generative Artificial Intelligence (GENAI) on manufacturing within the contexts of Industry 4.0 and Industry 5.0. Through a comprehensive literature review and systematic analysis, we identified thirteen key application areas of GENAI, including manufacturing processes, predictive and diagnostic applications, automation, data management, human-machine interaction, and more. The findings highlight GENAI’s transformative potential in enhancing production efficiency, optimising workflows, and enabling innovative product designs. However, the study also highlights the importance of addressing six challenges related to efficiency, technical limitations, ethical considerations, data management, decision-making, and innovation. By carefully navigating these challenges, manufacturing companies can leverage GENAI to drive innovation, efficiency, and competitiveness in the evolving industrial landscape. This research provides valuable insights for both academic and industrial stakeholders, guiding the effective implementation of GENAI technologies in manufacturing.