The lack of understanding and confidence in AI’s applications, revealed in “Future Factories powered by AI”, means only a third (36%) of companies are using it in their manufacturing operations.
Based on a survey of 151 companies in August, the report was published today (25 November) by manufacturers’ organisation Make UK and engineering software company Autodesk.
Despite the low levels of confidence, AI – including machine learning and generative AI – is increasingly being deployed across multiple areas, from predictive maintenance to supply chain optimisation. Increased efficiency is the biggest benefit, according to 69% of respondents, followed by improved productivity (61%) and automation of routine tasks (46%). Three-quarters of companies plan to increase their AI investments in the coming year.
“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,” said Make UK director of policy Verity Davidge.
“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.”
A quarter of companies are using AI as part of efforts to decarbonise, the report found. 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.
AI has its own high energy costs, however, with widespread concerns about a knock-on effect on sustainability efforts. Implementing AI can increase the energy demand of search tools such as Google tenfold, according to the International Energy Agency, which also forecasted a doubling in electricity consumption from data centres, AI and cryptocurrency between 2024 and 2026.
Skill issue
Large companies are more than twice as likely as small and medium enterprises (SMEs) to be applying AI (71% and 28% respectively), according to the Make UK and Autodesk report, with barriers to adoption including a lack of knowledge of how to apply AI and limited access to technical and digital skills.
A recent survey by Professional Engineering and IMechE found that engineers will need new skills and specialisms to prosper in AI-augmented businesses, including coding and prompt engineering.
That report, which found that more than two-fifths of respondents organisations are using AI or AI-related tools, identified reduced human oversight, cybersecurity risks and bias in decision making as the most negative aspects of its introduction.
Robot block
While adoption of AI is increasing, the new report showed the use of robotics remains low. Less than a fifth of manufacturing companies (16%) operate them, with almost a third (29%) not considering using them, and only four in ten (38%) considering them. The UK is 24th in the global rankings for robotics use, with 111 robots per 10,000 employees – 0.5% of the world’s robots in manufacturing, compared to 1.2% in France and 1.6% in Italy, which have similarly-sized industrial bases.
Make UK welcomed initiatives from the government, including confirmation of the Made Smarter programme nationwide and a doubling of the funding for the Alan Turing Institute.
“However, given the extent of barriers that remain for SMEs in particular, there needs to be greater efforts by industry itself to overcome awareness and cultural challenges in organisations by sharing peer-to-peer learning and best practice,” the organisation said.
It also suggested additional measures from government, including extending the R&D tax relief to cover investment in capital equipment.
Srinath Jonnalagadda, vice-president of industry strategy for design and 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.”
READ: "Promise and peril as engineering firms roll out AI"
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Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.