Three quarters of British manufacturers plan to increase AI investment in the next year despite the industry suffering from a “significant” knowledge gap, according to a new study by Make UK.

Only 16 per cent of the 151 manufacturers surveyed said they were knowledgeable about the subject, while only seven per cent described themselves as “very knowledgeable” about AI.

The study reveals that around 36 per cent of manufacturers are currently using AI technology in their operations for tasks such as managing energy use and reducing waste.

A further 44 per cent of manufacturers are using AI in production line automation to enhance manufacturing efficiency by automating tasks, while around a third use AI to connect new technologies with legacy machinery by enabling data integration, predictive analytics and process optimisation.

Make UK, which represents UK manufacturers, warned that some could be at risk of missing out on innovation and productivity gains due to a lack of knowledge and confidence.

According to the report, the manufacturing industry has the potential to make “huge” financial gains as it contributes around 47 per cent of all private research and development spending in the UK.

Verity Davidge, director of policy at Make UK, said that 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,” she added. “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.”

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