It would require further development of AI before it can automate physical factories. There are assorted species of critters that cannot be mass-slaughtered, because they require surgical cuts to remove bones or work around tough parts. An sufficiently advanced AI can X-ray and measure the carcass, then carve up the beast with minimal waste.
Of course, this would be very expensive, requiring entirely new infrastructure and procedures to implement. I suspect that the transition to industrial-application of AI would be slow - then sudden, after testbed factories prove the viability of AI automated workflows.