Embracing AI in Manufacturing: Insights from Smart Manufacturing & Engineering Week

Unlocking Opportunities and Overcoming Challenges for AI Adoption in the UK Midlands Manufacturing Sector

Petko Karamotchev
INDUSTRIA
4 min readJun 9, 2024

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With Ian Gardner during the round table don the topic “AI Presents so Many Opportunities for Manufacturing, but What are the Use Cases and How do We Address the Blockers for Adoption?

This past week, INDUSTRIA had the privilege of participating in the Smart Manufacturing & Engineering Week in Birmingham. A key highlight for us was the round table discussion led by Ian Gardner from IBM on the topic “AI Presents so Many Opportunities for Manufacturing, but What are the Use Cases and How do We Address the Blockers for Adoption?” The event provided a wealth of insights, and I’d like to share some thoughts and observations from the discussion, especially aimed at managers of manufacturing companies in the UK Midlands.

Opportunities for AI in Manufacturing

The potential for AI in manufacturing is immense. At its core, AI technology can significantly improve performance by augmenting human capabilities, allowing workers to focus on more strategic and complex tasks rather than mundane repetitive ones.

This isn’t about replacing jobs; it’s about placing people more effectively to maximize their potential and productivity.

One ambitious vision is to catch up with manufacturing giants like China and India by leveraging automation. This is where AI can play a pivotal role. For instance, the concept of Speed Factories, like those by Adidas, can be revitalized with smart AI integration, ensuring rapid, flexible, and efficient production closer to home.

Sharing best practices, particularly among SMEs, is crucial. As consultants, we at INDUSTRIA are committed to engaging more deeply with our clients to uncover specific AI adoption use cases. This is echoed by Kalina Tonkovska, CEO and Co-Founder of Programmatic, who consistently nudges us to highlight the transformative opportunities AI brings to SMEs.

Early adoption programs, in collaboration with consulting firms and academic institutions, can drive this forward. It’s also vital to emphasize that AI for manufacturing isn’t limited to generative AI like Gemini, ChatGPT, or Copilot. The scope of AI extends far beyond these tools, encompassing machine learning, advanced data analytics, and more.

Addressing Blockers for AI Adoption

However, the journey towards widespread AI adoption isn’t without its hurdles. Financial concerns are a major blocker; many companies remain uncertain about the investment required for AI. The dominance of capital-rich US firms like OpenAI, Microsoft, Google, IBM, and Tesla in the AI space raises questions about the opportunities available for innovative UK manufacturing companies.

Another significant barrier is the challenge of calculating return on investment (ROI) for small and medium-sized businesses. Without clear metrics, it’s hard for these companies to justify the investment in AI technologies.

There is also a pervasive fear of AI among employees, stemming from concerns about job displacement. This uncertainty can hinder adoption, as both management and staff may resist changes brought by AI.

Furthermore, the need for education in AI was a recurring theme during our discussions. Many companies feel that AI should be integrated into the curriculum to better prepare future workers. Additionally, existing business processes might need substantial re-engineering to fully leverage AI-driven practices.

Lastly, the widespread ChatGPT outage during the conference was a stark reminder of our dependency on technology. For manufacturing plants operating 24/7, such disruptions are unacceptable, highlighting the need for robust, reliable AI systems.

Broader AI Perspectives

As an expert in the field, I firmly believe that Generative AI represents only a fraction of AI’s potential in manufacturing. Machine learning and advanced data analytics have been around for years and offer numerous applications on the production floor. Highlighting relevant historical use cases can provide valuable lessons and confidence in AI adoption.

Advice for UK Manufacturers

  1. Experiment with Generative AI: Explore how tools like Gemini, ChatGPT, and Copilot can assist with small business objectives, streamline redundant tasks, and improve communication within and outside the company.
  2. Stay Informed: Regularly read AI-related publications and research how AI can impact your specific sector. Machine learning has been transforming production processes for years — stay abreast of these developments.
  3. Engage in Early Adoption Programs: Participate in initiatives that foster collaboration between consulting firms, academia, and the industry to explore and implement AI solutions.

I was particularly pleased to see INDUSTRIA among the partners of Innovate UK as part of the Digital Sandwich project. This initiative aims to boost productivity, improve cash flow, enhance food quality, and reduce waste within the supply chain, demonstrating the tangible benefits of advanced technologies like AI, industrial Internet of Things, and Blockchain.

INDUSTRIA Technology among the participants of the Innovate UK programs highlighted during the Smart Manufacturing & Engineering Week.

In conclusion, while there are challenges to AI adoption in manufacturing, the potential benefits far outweigh the hurdles. By staying informed, experimenting with new technologies, and fostering collaboration, UK manufacturers can harness AI to drive significant improvements in their operations.

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Petko Karamotchev
INDUSTRIA

Co-founder of INDUSTRIA.tech and Chairman at Programmatic.law. Mentor at R3. Working on international standards for blockchain and AI.