A Review of the Industry 4.0 to 5.0 Transition: Exploring the Intersection, Challenges, and Opportunities of Technology and Human–Machine Collaboration

The Industrial Revolution (IR) involves a centuries-long process of economic and societal transformation driven by industrial and technological innovation. From agrarian, craft-based societies to modern systems powered by Artificial Intelligence (AI), each IR has brought significant societal advancements yet raised concerns about future implications. As we transition from the Fourth Industrial Revolution (IR4.0) to the emergent Fifth Industrial Revolution (IR5.0), similar questions arise regarding human employment, technological control, and adaptation. During all these shifts, a recurring theme emerges as we fear the unknown and bring a concern that machines may replace humans’ hard and soft skills. Therefore, comprehensive preparation, critical discussion, and future-thinking policies are necessary to successfully navigate any industrial revolution. While IR4.0 emphasized cyber-physical systems, IoT (Internet of Things), and AI-driven automation, IR5.0 aims to integrate these technologies, keeping human, emotion, intelligence, and ethics at the center. This paper critically examines this transition by highlighting the technological foundations, socioeconomic implications, challenges, and opportunities involved. We explore the role of AI, blockchain, edge computing, and immersive technologies in shaping IR5.0, along with workforce reskilling strategies to bridge the potential skills gap. Learning from historic patterns will enable us to navigate this era of change and mitigate any uncertainties in the future.