The ‘Future Factories powered by AI’ report in collaboration with Autodesk examines the opportunities and challenges for UK manufacturers and proposes how government initiatives and regulation can support the adoption of new technologies.
AI is being deployed across multiple areas of manufacturing, from predictive maintenance to supply chain optimisation. The most significant benefits cited by manufacturers include increased efficiency (69 per cent), improved productivity (61 per cent), and automation of routine tasks (46 per cent).
The report also shows a quarter of companies using AI as part of efforts to decarbonise. Of those, 93 per cent are using it to optimise energy consumption, 64 per cent to reduce waste and emissions, and 57 per cent to improve resource efficiency. Looking forward, companies should see further gains in these areas with 75 per cent planning to increase their AI investments in the coming year.
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In a statement, 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.”
Despite increased adoption, just 16 per cent of companies claim to be knowledgeable about AI’s potential uses, with the lack of understanding and confidence in AI’s applications means only 36 per cent 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 per cent and 28 per cent respectively), with barriers to adoption including a lack of knowledge of how to apply AI and limited access to technical and digital skills.
Furthermore, while adoption of AI across overall business functions is increasing, the report shows the use of other digital tools, such as robotics, remains low. In total, 16 per cent operate them with 29 per cent not considering using them and 38 per cent considering using them.
Srinath Jonnalagadda, VP of Industry Strategy for Design & Manufacturing at Autodesk, said: “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.”
The survey of 151 companies was conducted in August 2024.
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