Industry set to increase investment in AI

25 November, 2024

The ‘Future Factories powered by AI’ report examines the opportunities and challenges for UK manufacturers and proposes how Government initiatives and regulation can support the sectors adoption of new technologies.

AI is increasingly being deployed across multiple areas of manufacturing, from predictive maintenance to supply chain optimisation, with the biggest benefits manufacturers cited being increased efficiency (69%), improved productivity (61%), and automation of routine tasks (46%). These benefits show the importance of lowering the barrier to entry for these technologies and the untapped potential for small manufacturers.

Furthermore, the report shows a quarter of companies using AI as part of their efforts to decarbonise. Of those more than nine in ten (93%) are using it to optimise energy consumption, almost two thirds (64%) to reduce waste and emissions and, more than half (57%) to improve resource efficiency. Looking forward, companies should see further gains in these areas almost three quarters of companies (75%) are planning to increase their AI investments in the coming year.

Nina Gryf, Digitalisation Lead at Make UK, said: “AI and automation are driving dramatic change in speeding up manufacturing processes and elsewhere in companies. Their potential to drive economic growth and reshape industries is becoming increasingly clear, and the manufacturing sector and its factories of the future have a central role to play. However, while the uptake of such technologies is increasing, the UK needs a step change in the use of automation otherwise it risks missing out on vital transformative productivity gains.”

Srinath Jonnalagadda, VP of Industry Strategy for Design & Manufacturing at Autodesk commented: “Taking advantage of new technologies isn’t a one-off investment and the silver bullet for change. It demands a shift in mindset and an iterative approach over time, especially in the journey towards future, digital factories. A continued and concerted effort will be needed to achieve the industry transformation and workforce with the skills and capacity required to take advantage of new technology, allowing UK industry to emerge as a global leader in AI-driven innovation, setting the new standard for manufacturing excellence.”

Despite increased adoption, only 16% of companies claim to be knowledgeable about AI’s potential uses and the lack of understanding and confidence in AI’s applications means only a third (36%) of companies are using it in their manufacturing operations.

The report also shows large companies are more than twice as likely as SMEs to be applying AI (71% and 28% respectively), with barriers to adoption including a lack of knowledge of how to apply AI and, limited access to technical and digital skills. Consequently, lower adoption rates among SMEs are preventing them from realising the benefits of increased profits seen by almost a quarter of companies and, an ability to take on further work reported by almost a third.