Despite the reported positive impact of AI on manufacturing and production businesses, the adoption of AI in Africa and Nigeria manufacturing sector remains low. While the impacts of AI are laudable, the textile manufacturing sector in Nigeria has not embraced fully the growing application in AI in their production systems. The local tie-dye (Adire) industry in Nigeria is a vital component of its cultural heritage, it showcases the nation's rich creative textile tradition while also a vital economic player for the Nigerian cottage industry. This industry faces significant challenges, including inconsistencies in production quality, limited design innovations, international competitiveness, and inefficiencies in manufacturing and distribution. This paper comprehensively analyses the application of artificial intelligence (AI) in revolutionising the Nigerian local tie-dye industry by improving design processes, quality control, supply chain management, design cataloging and global market competitiveness. This article employs case studies and contemporary AI technologies in the textile sector in order to create a framework for incorporating AI into the Adire industry, Aiming to maintain its cultural relevance while promoting economic growth. It can be concluded that the application of Artificial Intelligence in the Nigerian tie-dye industry presents a unique opportunity to enhance productivity, foster innovation, and expand market reach while preserving cultural heritage.