Energy Management and Resource Efficiency Driving AI Adoption Over Manufacturing Processes
The UK’s manufacturing sector is poised for a significant leap in artificial intelligence (AI) investment, with three-quarters of businesses planning to boost spending in the next year, according to the Future Factories Powered by AI report by Make UK and Autodesk, released today.
The report highlights both the opportunities and challenges for British manufacturers in adopting AI. While AI is making strides in areas such as predictive maintenance and supply chain optimisation, its use in core manufacturing processes remains limited. Instead, the technology is predominantly being used to improve energy efficiency, with 93% of companies leveraging AI for this purpose.
Key Findings from the Report:
- Two-thirds of manufacturers are already using AI in some aspect of their business.
- However, only16%feel knowledgeable about AI’s potential applications.
- Just 36%are employing AI in manufacturing processes.
- 90% of AI users are focusing on optimising energy consumption.
- Adoption of robotics is lagging, with less than one-fifth (16%) of companies using them.
- 75% of manufacturers plan to increase AI investment over the next year.
Nina Gryf, Digitalisation Lead at Make UK, emphasised the transformative power of AI and automation:
“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.”
Focus on Energy and Sustainability
AI is playing a critical role in the manufacturing sector’s decarbonisation efforts, with:
- 64% using it to reduce waste and emissions.
- 57% applying it to improve resource efficiency.
The report indicates a growing recognition of AI’s potential to enhance productivity, with 69% citing increased efficiency as a key benefit, followed by improved productivity (61%) and the automation of routine tasks (46%).
Srinath Jonnalagadda, VP of Industry Strategy for Design & Manufacturing at Autodesk, called for a shift in mindset to realise AI’s full potential:
“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.”
Challenges for SMEs
While large companies are twice as likely as SMEs to adopt AI (71% vs. 28%), smaller businesses face significant barriers, including limited technical knowledge and a lack of digital skills. This has stymied broader adoption and prevented SMEs from reaping the benefits of increased profits and workload capacity, as experienced by nearly a quarter and a third of larger businesses, respectively.
The adoption of robotics is also lagging, with the UK ranked 24th globally for robot density, well behind European peers such as France and Italy.
Recommendations for Industry and Government
To overcome these barriers, Make UK and Autodesk call for greater industry collaboration and peer-to-peer learning. They also urge the Government to extend R&D tax relief to cover investments in capital equipment and ensure the national roll-out of theMade Smarter programme is effective across all regions.
The survey of 151 manufacturers was conducted in August 2024. With AI investment set to rise, the report underscores the urgent need to address knowledge gaps and skills shortages to ensure UK manufacturers can fully harness AI’s transformative potential.