8 June 2026
The UK government has unveiled a new plan to accelerate AI adoption across manufacturing, aiming to boost productivity, economic growth and worker safety while unlocking billions in added value for the sector.
UK government has today announced plans to accelerate the adoption of artificial intelligence (AI) across UK manufacturing at scale, supercharging economic growth and productivity while making workers safer and focused on higher value tasks.
In a sector that contributes £234bn annually to the UK economy, evidence shows that industrial AI deployment could boost productivity by 2.5% and add a further £5-6bn in GVA each year once adopted at scale.
The UK has world-class strengths in AI capability and innovation, but adoption in manufacturing businesses and supply chains remains uneven and slow. While three-quarters of manufacturers have trialled AI pilots, most struggle to achieve scale and sustainable operational impact, stalled by legacy systems, limited data, access to testing environments and workforce capability gaps.
Today’s announcement forms part of an AI adoption plan, which was authored by the government-appointed national AI Champion for Advanced Manufacturing, Chris Dungey, who is the Chief Technology Officer of the High Value Manufacturing Catapult. The plan recommends a national pilot, which aims to help businesses use AI to predict equipment failures and maintenance needs, improve quality control and run systems more responsively, while enhancing safety and skills.
It sets out a pathway to demonstrate the positive impacts of AI on businesses, with a three-phased approach co-designed with industry primes, their supply chains and SMEs:
Business Secretary, Peter Kyle, said:
Thanks to this new Action Plan from DBT’s AI champion Chris Dungey, we’re ramping up the adoption of AI to give businesses the boost they need, turbocharging productivity and economic growth.
“Our Modern Industrial Strategy is giving investors the certainty they need to plan not just for the next year, but for the next 10 years and beyond. By ensuring the UK remains a leader in AI, we’re setting ourselves apart globally while making sure advanced manufacturing is a sector fit for the future.
Chris is one of eight national AI champions within the priority sectors in the modern industrial strategy tasked with drafting a comprehensive AI adoption plan by the Department for Science, Innovation and Technology (DSIT) and the Department for Business and Trade (DBT).
Professor Chris Dungey, HVM Catapult Chief Technology Officer and the government’s AI Champion for Advanced Manufacturing, said:
This is not about inventing new AI, but rather scaling existing, world-class solutions across the economy. While AI capability is advancing rapidly, adoption across UK manufacturing remains uneven and slow. We need a clear national pathway to connect innovation, workforce capability and deployment at scale.
“If the UK moves too slowly, it risks weaker productivity growth, slower uptake among SMEs and supply chains and falling behind countries already turning AI capability into industrial advantage. This investment will help businesses across the UK build the understanding and confidence to adopt these revolutionary technologies.
The government-backed proposal will harness existing UK strengths within an established infrastructure, including the HVM Catapult network, Made Smarter, BridgeAI, Innovate UK and MakeUK who have co-authored the plan.
It will target the early build-out of the AI front door, regional and sector-based deployment pilots, targeted workforce capability activity and initial validation projects in real manufacturing environments as part of five key interventions:
Workforce capability will be central to the adoption pathway, positioning AI as a tool to help employees work more productively and safely. It recognises that businesses must actively support their employees by signposting AI training and skills to build confidence and capability from early awareness through to embedding AI in everyday operations.
The plan also champions inclusive adoption that reaches all employees regardless of seniority or qualifications as a delivery requirement, as well as using AI tools in professional workflows – such as procurement, supply chain planning and management systems – as a practical bridge towards wider industrial AI deployment.
Brian Holliday, CEO of Siemens in the UK and Ireland, said:
The Government’s AI adoption plan is a welcome signal of intent. Technology adoption is vital to tackling the UK’s productivity slump. AI now raises the stakes – we can join the pack or risk being left behind.
“The OECD suggested in 2025 that AI could lift UK productivity growth by 0.4 to 1.3 percentage points in the next 10 years. And, from our work with customers, we know that autonomous AI agents could drive productivity gains of up to 50 per cent in some cases.
“I particularly welcome the focus on workforce capability given Skills England’s annual report released last week highlighted the need to define and embed core AI skills into the workforce to adopt new technologies. If we align policy, technology and skills, businesses on the ground can benefit from AI as a powerful engine for growth.
Stephen Phipson, CEO of Make UK, said:
AI offers manufacturers huge potential to unlock significant gains and a boost to overall growth by utilising specific areas such as energy efficiency and skills. But, until now what has been missing has been a firm plan to mobilise this potential. The AI Adoption Plan for Advanced Manufacturing is the missing piece of the jigsaw and is a welcome and, positive, step by Government which will help manufacturers scale up and grow.