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“Smart” refers to tools that are “specific, measurable, achievable, reasonable/realistic, and time bound.” Smart assembly tools are used in many industries, including automotive, aerospace, and space for measuring, inspecting, gauging, drilling, and installing all existing fastening systems. Inside the Industry 4.0 environment, these tools have a huge influence on Information and Communication Technology (ICT), assembly cost reduction, process control, and even the product and process quality. These four domains—and their undefined nature—are the focus of this SAE EDGE™ Research Report. The technical issues identified here need to be discussed, the goals clarifying the scope of the industry-wide need to be aligned, and the issues requiring standardization need prioritized. NOTE: SAE EDGE Research Reports are intended to identify and illuminate key issues in emerging, but still unsettled, technologies of interest to the mobility industry.