Virtual factories are revolutionizing the manufacturing landscape by providing computer-based replicas of real-world manufacturing facilities, enabling companies like BMW and Hyundai to optimize their operations. By leveraging AI, virtual factories unlock a whole new world of possibilities, paving the way for improved productivity, cost savings, and innovation. MongoDB Atlas can be used to build a virtual factory in 5 simple steps: defining business requirements, creating a 3D model, connecting the physical and virtual factories, data modeling, and enabling computer vision for real-time inventory. Virtual factories offer benefits such as optimization of production processes, identification of inefficiencies, aiding quality control, and simulating manufacturing processes without the need for physical prototypes or real-world production facilities.