Make UK & Autodesk: UK Manufacturers Lagging Behind on AI

Industry 4.0 technologies like AI and automation are transforming manufacturing.

However, in the UK sector, adoption of them has been notably slower. 

This has been highlighted recently by a new study by Make UK, the leading trade association for UK manufacturers and Autodesk, a heavyweight in design and engineering software.

Their collaborative report, titled 'Future Factories powered by AI' shines a spotlight on the state of AI adoption across UK manufacturing companies, showcasing both promising opportunities and substantial hurdles.

AI: On the radar, but not in the factory

AI is certainly on the radar of UK manufacturing, but its actual integration is a different story.

While a significant two-thirds of companies are dabbling in AI technologies, a mere third have incorporated these systems directly into their manufacturing operations.

This gap equals a wealth of untapped productivity advancements across the UK manufacturing sector, and is partly driven by a  deficiency in AI understanding. 

The report identifies that only 16% of surveyed manufacturers possess a robust grasp of AI’s practical applications.

This knowledge gap is even more pronounced among smaller enterprises, which are not adopting AI as promptly as their larger counterparts.

“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”, says Srinath Jonnalagadda, Vice President of Industry Strategy for Design & Manufacturing at Autodesk.

"AI and automation are driving dramatic change in speeding up manufacturing processes and elsewhere in companies," says Nina Gryf, Digitalisation Lead at Make UK.

“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," she adds, “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.”

Despite sluggish overall uptake in direct manufacturing applications, AI is making significant inroads in certain areas like energy management and waste minimisation.

The push for decarbonisation is seeing widespread use of AI in these areas, with more than 90% of AI-utilising firms focusing on these applications.

Given rising energy costs and stricter environmental regulations, the role of AI in this area of manufacturing is only set to expand.

Robotics: An area of concern

As nations like China, Germany and the US increase their investment in robotics, the UK stands in stark contrast. 

Currently, less than 20% of UK manufacturers are utilising robots, and almost a third of firms are not even contemplating the use of robotic technology.

This positions the UK at 24th globally for robotics use, with a mere 111 robots per 10,000 workers—a number far behind its international peers.

This places the UK quite low on the robotic adoption scale, even when compared with countries that have similar industrial capacities.

It possesses just 0.5% of the world's manufacturing robots, which is less than France's 1.2% and Italy's 1.6%.

An optimistic future

Despite the existing barriers, there is an optimistic forecast for AI investment among UK manufacturers.

Around three-quarters of the companies surveyed express intentions to increase their investment in AI in the upcoming years.

The study suggests several strategic actions to boost AI adoption, such as broadening R&D tax relief to include capital equipment investments and promoting the nationwide implementation of the 'Made Smarter' programme.

"Taking advantage of new technologies isn't a one-off investment and the silver bullet for change," adds Srinath.

“It demands a shift in mindset and an iterative approach over time, especially in the journey towards future digital factories.”

This initiative is designed to assist small and medium-scale manufacturers in acquiring advanced technological and digital capabilities.

The drive towards a more tech-savvy manufacturing sector in the UK represents not just an adaptation to industry evolution but a critical measure to maintain competitiveness on a global stage.

As industries worldwide continue to revolutionise through technology, the stakes have never been higher for UK manufacturers to catch up and harness the power of AI and robotics in their operations.

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