UK manufacturers are increasingly investing in artificial intelligence (AI), but the challenge remains turning enthusiasm for the technology into meaningful improvements on the factory floor.
According to the latest Office for National Statistics data, 35% of UK businesses employing 10 or more people now use at least one AI technology. Manufacturing is among the sectors showing growing interest, with research from Make UK revealing that 75% of manufacturers plan to increase investment in AI over the next year, while 85% say AI and machine learning are already having either some or a significant impact on their business.
Despite this optimism, adoption across manufacturing operations remains relatively limited. Make UK's research found that fewer than 40% of manufacturers currently use AI in some areas of their organisation, while only 2% report that it is widely embedded throughout their operations. Separate government research has suggested that just 8% of manufacturers surveyed have successfully implemented AI and machine learning technologies.
The findings highlight a growing divide between understanding AI's potential and applying it effectively in day-to-day manufacturing environments.
One company seeking to bridge that gap is North Yorkshire steelwork specialist
Tadweld, which has launched an AI project through Made Smarter Yorkshire & Humber's Intensive Technical Support programme.
The initiative aims to explore where AI can deliver practical business benefits, reflecting a wider trend across UK manufacturing as companies look beyond the hype and focus on measurable outcomes.
Current adoption patterns suggest manufacturers remain most comfortable deploying AI in administrative functions rather than core production activities. Make UK's research found that 83% of manufacturers using AI have adopted it in areas such as HR, finance and administration. By comparison, only 11% use AI in production, 7% in supply chain management and 6% in quality control.
A number of barriers continue to slow wider adoption. The Government's Technology Adoption Review identifies a shortage of specialist skills, cyber security concerns and the difficulty of integrating new technologies with existing factory systems among the key challenges facing businesses. The review also points to a wider issue within the UK economy: a strong track record in developing innovative technologies but comparatively slower uptake across industry.
For Tadweld, however, the AI project represents a continuation of a long-standing commitment to innovation.
Chris Houston, managing director of Tadweld (pictured) said: "This is an exciting milestone for Tadweld and a strong reflection of the culture we are building across the business. There is often a misconception that long-standing manufacturers and family-run businesses aren't willing to move with the times, but at Tadweld, innovation is one of our three core values.
"It means continually looking for better ways to work, supporting our people and strengthening the service we provide to our customers.
"AI has the potential to help manufacturers unlock significant improvements, but it needs to be introduced thoughtfully and with a clear commercial purpose. Through Made Smarter Yorkshire and Orah AI Consultancy, we will be able to identify where the technology can deliver genuine value and begin building the knowledge and confidence needed to use it effectively.
"We are proud to be the first manufacturer in North Yorkshire to begin this type of support through the programme, and we hope our experience will encourage other manufacturers to explore what AI could mean for their own businesses."
Mike Pennington, business relationship manager for Made Smarter in York & North Yorkshire, said: "Tadweld is a fantastic example of a forward-thinking manufacturer taking a practical and considered approach to digital transformation.
"As the first business in North Yorkshire to commence AI Intensive Technical Support through Made Smarter Yorkshire & Humber, Tadweld is helping to demonstrate how emerging technology can be translated into meaningful improvements on the factory floor and across wider business operations."
While AI investment across manufacturing continues to rise, the experience of companies such as Tadweld underlines a broader industry challenge: ensuring that interest in the technology is converted into practical solutions that improve productivity, efficiency and competitiveness.