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Automotive manufacturing leads in UK's AI adoption, new research reveals

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A new study by IDS-INDATA has revealed that the automotive sector is leading the way in the adoption of artificial intelligence across UK manufacturing industries.

The automotive sector leads UK manufacturing in AI adoption, with an approximately 60 per cent implementation rate, new research has found
The automotive sector leads UK manufacturing in AI adoption, with an approximately 60 per cent implementation rate, new research has found - AdobeStock

IDS-INDATA, which powers digital transformation for businesses of all sizes, analysed AI implementation across seven major manufacturing sectors to determine which industries are making the most progress in technological advancement.

The automotive industry emerged as the clear frontrunner, with an estimated 60 per cent AI adoption rate and a perfect maturity score of 5/5. This high level of implementation puts the sector at the forefront of AI innovation in British manufacturing. According to the findings, automotive manufacturers have committed a particularly high level of investment in AI technologies, enabling them to achieve a leading status in the rankings.

Electronics and high-tech ranked second among UK manufacturing sectors, with a 55 per cent adoption rate of AI. Similar to the automotive industry, these companies also achieved a 5/5 maturity score, also demonstrating high investment levels in AI technology.

The aerospace and defence sector completed the top three, with 50 per cent AI adoption across the industry. With a strong maturity score of 4/5 and high investment levels, these manufacturers have established themselves as having strong AI capabilities, but the study reported that they have not yet reached the leader status of the top two sectors.

At the other end of the spectrum, the food and beverage sector was found to be in the early stages of AI adoption, with only 20 per cent of the industry implementing it. With a maturity score of 2/5 and low-to-medium investment levels, the sector has been classified as an emerging adopter, highlighting considerable opportunities for growth.

Industrial machinery manufacturers demonstrated 'moderate' AI adoption, IDS-INDATA said, with an approximately 30 per cent adoption rate and a 3/5 maturity score. The medium investment levels in this sector have resulted in its classification as a mid-tier performer in the AI space, indicating gradual progress but still considerable distance from the leading sectors.

The chemicals and materials sector also showed an estimated 30 per cent AI adoption rate with a 3/5 maturity score. Despite slightly higher medium-to-high investment levels than the industrial machinery sector, chemical and materials companies remain classified as 'mid-tier' in their AI implementation journey.

In a statement, Iain Askew, Managing Director at IDS-INDATA, said: "The statistics show that AI adoption varies dramatically across UK manufacturing sectors, with some industries racing ahead while others are still in the early stages of their journey. The automotive sector's strong performance reflects years of focused investment and clear strategic vision for how AI can transform their operations.

"What's encouraging is that sectors like food and beverage, while currently at lower adoption levels, have significant untapped potential. We are already seeing innovative companies in these industries implement AI in ways that deliver real business benefits. By following the examples set by leading sectors such as automotive and electronics, they can accelerate their AI transformation and strengthen competitiveness."

The research highlights a growing divide between AI-ready sectors and those earlier in the adoption curve, the researchers said. This gap suggests that targeted support and sector-specific strategies may be needed to help bring all manufacturing industries to comparable levels of technological readiness.

The full study, 'Mapping the Future of AI in Manufacturing,' can be accessed in full here

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