One of the key dynamics in the manufacturing industry is the increasing adoption of artificial intelligence (AI). Yet even though two thirds of UK businesses use it, only a third use it in manufacturing processes, according to a report by Make the UK.
THE Future factories powered by AI study of trade association representing the British manufacturing industry was carried out in August 2024 in collaboration with the design software giant Autodeskand alerted the industry that a lack of trust in digital technologies and AI means it risks missing out on innovation and productivity gains. It also suggests how government initiatives and regulation can support the sector’s adoption of new technologies.
Crucially, the report shows that manufacturers are widely using AI tools across their business, particularly to manage energy consumption and reduce waste. Yet despite growing adoption, only 16% say they are aware of the potential uses of AI. The lack of understanding and confidence in AI applications, Make UK warned, means only a third (36%) of companies are using it in their manufacturing operations, with significant implications for the UK’s efforts. United to improve productivity.
AI has been found to be increasingly deployed in several areas of manufacturing, from predictive maintenance to supply chain optimization, and the main benefits cited by manufacturers are increased efficiency (69 %), improved productivity (61%) and automation of routine tasks (46%). . These benefits demonstrate the importance of lowering barriers to entry for these technologies and the untapped potential for small manufacturers.
While adoption of AI across business functions is increasing, the report shows that the use of other digital tools, such as robotics, remains “disappointingly” low. Less than a fifth of businesses (16%) are leveraging them, with almost a third (29%) not considering using them and just four in 10 (38%) considering using them.
The United Kingdom is positioned 24th in the global ranking of the use of robotics, with 111 robots per 10,000 employees. Additionally, the UK uses just 0.5% of the world’s robots in manufacturing, compared to 1.2% in France and 1.6% in Italy, two countries with similar sized industrial bases.
It was found that large businesses are twice as likely as small and medium-sized businesses (SMEs) to apply AI (71% and 28% respectively), with smaller businesses resigning themselves to slower integration of AI. AI. Barriers to adoption include lack of knowledge on how to apply AI and limited access to technical and digital skills. As a result, the report highlights how low adoption rates among SMEs are preventing them from reaping the benefits of increased profits seen by almost a quarter of businesses and the ability to undertake additional work reported by almost a third.
In a call to action, Make UK highlighted that given the scale of the barriers that remain for SMEs in particular, the industry itself must redouble its efforts to overcome the awareness and cultural challenges of organizations by sharing peer learning and best practices. .
It also suggests that the government takes additional specific measures, including extending R&D tax relief to capital goods investments and ensuring that extended Made Smarter program – designed to help manufacturing SMEs adopt technology and digital skills – is able to operate in all regions.
“AI and automation are driving dramatic changes in the acceleration of manufacturing processes and elsewhere in businesses,” said Nina Gryf, head of digitalization at Make UK. “Their potential to drive economic growth and reshape industries is becoming increasingly evident, and the manufacturing sector and its factories of the future have a central role to play.
“However, as adoption of these technologies increases, the UK needs a step change in the use of automation, otherwise it risks missing out on essential transformative productivity gains.”
“Leveraging new technologies is not a one-time investment or a silver bullet for change,” said Srinath Jonnalagadda, vice president of industry strategy for design and manufacturing at Autodesk. “This requires a mindset shift and an iterative approach over time, particularly in the journey to future digital factories.
“A continued and concerted effort will be required to achieve industry transformation and a workforce with the skills and capabilities required to take advantage of new technologies, enabling UK industry to become a leader world leader in AI-driven innovation, setting the new standard in manufacturing. Excellency.”