Currently, the global manufacturing industry is undergoing a new generation of information technology revolution led by artificial intelligence. Although manufacturing enterprises in China play a crucial role in economic development, they generally face bottlenecks such as low production efficiency, low product added value, and insufficient innovation capabilities. In this context, this study deeply discusses the path and mechanism of competitive strategy optimization of AI enabled manufacturing enterprises. Using literature research methods, case analysis methods, and empirical research methods, a theoretical framework and method system for artificial intelligence enabling the optimization of manufacturing enterprises’ competitive strategies are constructed. The study proposes optimization paths such as data-driven intelligent perception of strategic environment, intelligent algorithm-driven strategic generation and evaluation, dynamic monitoring of strategic implementation and agile adjustment, and knowledge graph-based analysis of competitors’ situations. It also provides guarantee measures from the aspects of technology and talent. Research shows that artificial intelligence can offer new opportunities for manufacturing enterprise competition strategy optimization, power enterprises more competitive, achieve high quality development.