Unlocking the Potential of Industrial AI: The UK's Path to Greater Growth and Productivity
Throughout history, transformative technologies have reshaped entire civilizations and economic systems. The printing press allowed for the democratisation of knowledge and its diffusion. The steam engine and mechanisation of the Industrial Revolution catapulted Britain to global economic dominance in the 18th and 19th centuries. The digital revolution of the late 20th century created entirely new industries and ways of working. Today, we stand at the threshold of the next great transformation: the AI revolution. Within this epochal shift, Industrial AI represents a vital component—perhaps not a revolution in itself, but a critical application of artificial intelligence that has the potential to fundamentally reshape how we manufacture, build, and innovate. For the UK, this presents an unprecedented opportunity to revitalise British manufacturing, enhance productivity, and secure our position as a world leader in advanced technology adoption.
The UK stands at a critical juncture in its industrial evolution. As global competition intensifies and geopolitical factors reshape the industrial landscape, the transformative power of Industrial AI presents an unprecedented opportunity to revitalise British manufacturing, enhance productivity, and secure our position as a world leader in advanced technology adoption.
Industrial AI: More than just automation
Industrial AI represents far more than simple automation or process optimisation. It encompasses the intelligent application of artificial intelligence technologies across the growth-driving sectors identified in the Government's Industrial Strategy – including advanced manufacturing, life sciences, and defence – to create truly smart, responsive industrial ecosystems. From predictive maintenance that prevents costly downtime to advanced process automation that adapts in real-time to changing conditions, Industrial AI is fundamentally redefining how British industry operates across these critical sectors.
The potential is staggering. With artificial intelligence poised to boost UK GDP by an estimated £550 billion by 2035 (Microsoft and Public First, Unlocking the UK’s AI Potential: Harnessing AI for Economic Growth, 2025), accelerating AI adoption could potentially propel us from our current 12th position back into the top ten global manufacturing nations. This isn't just about economic statistics – it's about creating high-quality jobs, attracting investment, and ensuring the UK remains competitive in an increasingly AI-driven global marketplace.
Beyond the hype: Real-world impact today
Industrial AI is very much the present, available to transform industries today. According to a recent report by Reuters Events and Siemens, 21% of senior industrial figures had already implemented industrial AI for energy management, with the same proportion having done so for predictive maintenance. Around half (48% - 57%) expected to implement industrial AI across a range of applications within the next three years (Reuters Events and Siemens, A New Pace of Change: Industrial AI x Sustainability, 2024).
Through techUK's Industrial AI Sprint campaign, we've witnessed compelling evidence of AI's transformative impact across British industry. Companies are achieving remarkable results: a UK automotive manufacturer reduced unplanned downtime by 30% through AI-driven predictive maintenance (from techUK Industrial AI Sprint campaign case studies), while advanced manufacturing firms are using digital twins to optimise precision component production and manage high-volume sensor data more effectively (from techUK Industrial AI Sprint campaign findings).
These aren't isolated success stories but part of a growing trend where Industrial AI is enabling human-AI collaboration that enhances rather than replaces human expertise. AI-powered assistants are helping bridge knowledge gaps, simulators are accelerating on-the-job learning, and workers are making better, faster decisions armed with intelligent insights.
The path from pilots to production: Scaling challenges and solutions
However, the journey from successful pilots to full-scale deployment remains complex. Our campaign events have highlighted critical barriers that must be addressed to unlock Industrial AI's full potential across the UK.
Infrastructure and legacy systems: Many organisations, particularly SMEs, struggle with outdated infrastructure and legacy systems that weren't designed for AI integration. The lack of basic digital tools, including ERP systems critical for smart factory operations, remains widespread. Success requires building internal capabilities and securing whole-business buy-in rather than relying solely on external consultants.
Data foundation and interoperability: Industrial AI adoption fundamentally starts with data – organising it, contextualising it, and unlocking value through semantic inferencing and language models. Yet siloed data, aging equipment, and inadequate infrastructure continue to hinder implementation. Building strong data foundations requires comprehensive approaches from collection and contextualisation through to governance, ensuring data integrity and usability across teams and departments.
Skills and workforce readiness: The demand for AI and data specialists continues to grow, but equally important is developing domain-specific expertise in industrial and engineering applications. Upskilling through tailored training and fostering "super user" personas within organisations have emerged as effective strategies. Successful integration hinges on involving end users from the outset, ensuring tools are intuitive, useful, and aligned with real-world workflows.
Building trust and confidence in Industrial AI
Trust remains a fundamental challenge. Many business leaders remain cautious about AI adoption, particularly in mission-critical industrial environments where safety and reliability are paramount. Building confidence requires transparency, education about AI purpose and capabilities, and implementing human-in-the-loop systems that ensure AI operates safely and ethically at scale.
Cybersecurity and data governance have emerged as essential components of trustworthy AI deployment. As AI systems become more sophisticated and interconnected, robust security frameworks and accountability mechanisms become critical for maintaining operational integrity and stakeholder confidence.
The sustainability imperative
Industrial AI's role in advancing sustainability cannot be overlooked. As businesses grapple with net-zero commitments and circular economy transitions, AI technologies offer powerful tools for reducing waste, optimizing energy consumption, and supporting sustainable manufacturing practices. This dual benefit – enhanced productivity alongside environmental responsibility – positions Industrial AI as a cornerstone technology for future industrial strategy.
A call for collaborative action
The Government's Industrial Strategy has rightly identified key growth-driving sectors where the UK can build competitive advantage. Industrial AI offers a transformative pathway to accelerate growth across advanced manufacturing, life sciences, defence, and other strategic sectors by enhancing productivity, driving innovation, and creating the high-value capabilities that will define tomorrow's economy.
Vendor-neutral case studies highlighting successful AI implementations are crucial for building trust among UK SMEs and encouraging partnerships with trusted AI providers. We must foster an ecosystem where Industrial AI technology providers can connect effectively with organisations ready to adopt these transformative tools.
Looking ahead: The future of UK industry
The future will be shaped by increasingly sophisticated language and vision models capable of diagnosing issues, optimizing decisions, and issuing actionable outputs. Generative AI models are already being tested for decision support, simulation, and process design, paving the way for more autonomous operations in complex engineering environments.
As we look towards this future, workforce readiness becomes paramount. Training, experimentation, and a mindset shift towards AI-driven problem solving are all critical to success in industrial contexts. The organisations that invest in these capabilities today will be the leaders of tomorrow.
techUK's Industrial AI Sprint: Driving change together
Through our Industrial AI Sprint campaign, techUK is committed to showcasing real-world applications, addressing adoption barriers, and building the collaborative partnerships necessary to unlock Industrial AI's full potential. We're bringing together technology providers, adopting organisations, policymakers, and industry experts to create a thriving ecosystem that can drive UK competitiveness and growth.
Read more about our previous events:
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Launch Event: Our campaign kicked off with industry leaders, innovators, and policymakers exploring Industrial AI's real-world impact through fireside chats, expert panels, and presentations on cutting-edge use cases from digital twins to generative AI for innovation. Read more
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Scaling Industrial panel and sector meetup: Focused on moving beyond pilots to full-scale deployment, this event brought together industry leaders to explore practical challenges and opportunities in operationalising AI across R&D-intensive sectors including advanced manufacturing, life sciences, and defence. Read more
The economic opportunity is clear, the technology is ready, and the need is urgent. The question is not whether Industrial AI will transform UK industry, but how quickly we can harness its potential to secure Britain's digitally-enabled industrial future.
The time for action is now. The UK's path to greater growth and productivity runs directly through the strategic adoption of Industrial AI – and together, we can unlock this transformative potential.
Please email Usman Ikhlaq to learn how you can get involved: [email protected]
Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
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Kir Nuthi
Kir Nuthi
Kir Nuthi is the Head of AI and Data at techUK.
She holds over seven years of Government Affairs and Tech Policy experience in the US and UK. Kir previously headed up the regulatory portfolio at a UK advocacy group for tech startups and held various public affairs in US tech policy. All involved policy research and campaigns on competition, artificial intelligence, access to data, and pro-innovation regulation.
Kir has an MSc in International Public Policy from University College London and a BA in both Political Science (International Relations) and Economics from the University of California San Diego.
Outside of techUK, you are likely to find her attempting studies at art galleries, attempting an elusive headstand at yoga, mending and binding books, or chasing her dog Maya around South London's many parks.
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Usman Ikhlaq
Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
He leads techUK’s AI Adoption programme, supporting members of all sizes and sectors in adopting AI at scale. His work involves identifying barriers to adoption, exploring solutions, and helping to unlock AI’s transformative potential, particularly its benefits for people, the economy, society, and the planet. He is also committed to advancing the UK’s AI sector and ensuring the UK remains a global leader in AI by working closely with techUK members, the UK Government, regulators, and devolved and local authorities.
Since joining techUK, Usman has delivered a regular drumbeat of activity to engage members and advance techUK's AI programme. This has included two campaign weeks, the creation of the AI Adoption Hub (now the AI Hub), the AI Leader's Event Series, the Putting AI into Action webinar series and the Industrial AI sprint campaign.
Before joining techUK, Usman worked as a policy, regulatory and government/public affairs professional in the advertising sector. He has also worked in sales, marketing, and FinTech.
Usman holds an MSc from the London School of Economics and Political Science (LSE), a GDL and LLB from BPP Law School, and a BA from Queen Mary University of London.
When he isn’t working, Usman enjoys spending time with his family and friends. He also has a keen interest in running, reading and travelling.
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Sue Daley OBE
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In 2025, Sue was honoured with an Order of the British Empire (OBE) for services to the Technology Industry in the New Year Honours List.
She has been recognised as one of the most influential people in UK tech by Computer Weekly's UKtech50 Longlist and in 2021 was inducted into the Computer Weekly Most Influential Women in UK Tech Hall of Fame.
A key influencer in driving forward the data agenda in the UK, Sue was co-chair of the UK government's National Data Strategy Forum until July 2024. As well as being recognised in the UK's Big Data 100 and the Global Top 100 Data Visionaries for 2020 Sue has also been shortlisted for the Milton Keynes Women Leaders Awards and was a judge for the Loebner Prize in AI. In addition to being a regular industry speaker on issues including AI ethics, data protection and cyber security, Sue was recently a judge for the UK Tech 50 and is a regular judge of the annual UK Cloud Awards.
Prior to joining techUK in January 2015 Sue was responsible for Symantec's Government Relations in the UK and Ireland. She has spoken at events including the UK-China Internet Forum in Beijing, UN IGF and European RSA on issues ranging from data usage and privacy, cloud computing and online child safety. Before joining Symantec, Sue was senior policy advisor at the Confederation of British Industry (CBI). Sue has an BA degree on History and American Studies from Leeds University and a Masters Degree on International Relations and Diplomacy from the University of Birmingham. Sue is a keen sportswoman and in 2016 achieved a lifelong ambition to swim the English Channel.
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Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
