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The fast pace of modern AI is rapidly transforming traditional industrial systems into vast, intelligent and potentially unmanned autonomous operational environments driven by AI-based solutions. These solutions leverage various forms of machine learning, reinforcement learning, and generative AI. The introduction of such smart capabilities has pushed the envelope in multiple industrial domains, enabling predictive maintenance, optimized performance, and streamlined workflows. These solutions are often deployed across the Industrial Internet of Things (IIoT) and supported by the Edge-Fog-Cloud computing continuum to enable urgent (i.e., real-time or near real-time) decision-making. Despite the current trend of aggressively adopting these smart industrial solutions to increase profit, quality, and efficiency, large-scale integration and deployment also bring serious hazards that if ignored can undermine the benefits of smart industries. These hazards include unforeseen interoperability side-effects and heightened vulnerability to cyber threats, particularly in environments operating with a plethora of heterogeneous IIoT systems. The goal of this study is to shed light on the potential consequences of industrial smartness, with a particular focus on security implications, including vulnerabilities, side effects, and cyber threats. We distinguish software-level downsides stemming from both traditional AI solutions and generative AI from those originating in the infrastructure layer, namely IIoT and the Edge-Cloud continuum. At each level, we investigate potential vulnerabilities, cyber threats, and unintended side effects. As industries continue to become smarter, understanding and addressing these downsides will be crucial to ensure secure and sustainable development of smart industrial systems.