Autodesk: Addressing the AI and Manufacturing Challenge

As global competition intensifies, countries are striving to adopt these technologies to boost productivity and innovation.

Amidst Industry 4.0, AI and automation are transforming manufacturing processes worldwide.

However, a recent report suggests that the UK manufacturing sector may be falling behind in this crucial area, potentially jeopardising its competitive edge in the global market.

Make UK, the trade association representing UK manufacturing, in collaboration with Autodesk, a leader in design and engineering software, has published a report titled 'Future Factories powered by AI'.

The study examines the current state of AI adoption in UK manufacturing and highlights both opportunities and challenges facing the sector.

Adoption trends and barriers

The report reveals a mixed picture of AI adoption among UK manufacturers.

While two-thirds of companies are using AI tools in some capacity, only a third are applying them directly to manufacturing processes.

“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.

This discrepancy points to a significant untapped potential for productivity gains.

One of the key barriers to wider AI adoption is a lack of understanding.

Only 16% of surveyed companies claim to be knowledgeable about AI's potential uses.

This knowledge gap is particularly pronounced among small and medium-sized enterprises (SMEs), which are less than half as likely as large companies to be applying AI (28% compared to 71%).

Nina Gryf, Digitalisation Lead at Make UK, emphasised the urgency of addressing this issue, and the potential 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”, 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.”

Energy management driving AI use

Despite the overall low adoption in manufacturing processes, the report highlights that AI is being widely used for energy management and waste reduction.

More than nine in 10 companies using AI for decarbonisation efforts are applying it to optimise energy consumption.

This trend aligns with global efforts to reduce industrial carbon footprints and improve resource efficiency.

As energy costs and environmental regulations continue to be significant factors for manufacturers, AI's role in this area is likely to grow.

Robotics adoption lags behind

The report also reveals a concerning trend in robotics adoption.

Less than a fifth of UK manufacturing companies operate robots, with almost a third not even considering their use.

This puts the UK at 24th place globally in robotics use, with just 111 robots per 10,000 employees.

Furthermore, compared to countries with similar-sized industrial bases, the UK's robotics adoption rate is notably low.

The UK uses just 0.5% of the world's manufacturing robots, compared to 1.2% in France and 1.6% in Italy.

Future outlook and recommendations

Despite these challenges, the report indicates a positive outlook for future AI investment. Three-quarters of surveyed companies plan to increase their AI investments in the coming year.

The report recommends several measures to boost AI adoption, including extending R&D tax relief to cover investment in capital equipment and ensuring the nationwide rollout of the Made Smarter programme, which aims to help SME manufacturers adopt technology and digital skills.

Srinath Jonnalagadda, VP of Industry Strategy for Design & Manufacturing at Autodesk, emphasised the need for a long-term approach: "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.”

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