From AI potential to practical value

The manufacturing sector is also showing a growing appetite to explore and invest in the technology. Research from Make UK found that 75% of manufacturers planned to increase their investment in AI over the following year, while 85% said AI and machine learning were already having either some or a significant impact on their businesses.

However, translating that interest into widespread operational use remains a challenge. The latest Make UK research found that fewer than 40% of manufacturers are currently using AI in some areas, with just 2% saying it is widely embedded across their operations. Government research has similarly found that just 8% of manufacturers surveyed had successfully introduced AI and machine learning into their businesses.

Against this backdrop, North Yorkshire steelwork manufacturer Tadweld has begun an AI project through Made Smarter Yorkshire & Humber's Intensive Technical Support programme, exploring how the technology could deliver practical improvements across its operations.

The move reflects a wider challenge facing manufacturers across the UK: moving from recognising the potential of AI to understanding where it can deliver measurable value in real-world industrial environments.

Make UK's latest research also found that AI adoption in manufacturing remains concentrated in back-office functions, with 83% of manufacturers using AI in areas such as HR, finance and administration. Use in core operational areas remains considerably lower, with 11% using AI in production, 7% in supply chain and 6% in quality control.

The findings suggest that manufacturers are increasingly aware of what AI could offer, but many are still working out how to apply it effectively within their own operations.

The UK Government's Technology Adoption Review highlights several of the practical barriers involved, including a lack of specialist skills, cyber security concerns and the challenges of integrating new technologies with legacy systems in factories. Its findings also point to a gap between the UK's strength in developing new technologies and the extent to which those technologies are adopted across businesses.

For Tadweld, the project is a natural extension of a long-standing commitment to innovation and positive change.

Chris Houston, managing director at Tadweld, said: “This is an exciting milestone for Tadweld and a strong reflection of the culture we are building across the business. There is often a misconception that long-standing manufacturers and family-run businesses aren’t willing to move with the times, but at Tadweld, innovation is one of our three core values.

“It means continually looking for better ways to work, supporting our people and strengthening the service we provide to our customers.

“AI has the potential to help manufacturers unlock significant improvements, but it needs to be introduced thoughtfully and with a clear commercial purpose. Through Made Smarter Yorkshire and Orah AI Consultancy, we will be able to identify where the technology can deliver genuine value and begin building the knowledge and confidence needed to use it effectively.

“We are proud to be the first manufacturer in North Yorkshire to begin this type of support through the programme, and we hope our experience will encourage other manufacturers to explore what AI could mean for their own businesses.”

Mike Pennington, business relationship manager for Made Smarter in York & North Yorkshire, said: “Tadweld is a fantastic example of a forward-thinking manufacturer taking a practical and considered approach to digital transformation.

“As the first business in North Yorkshire to commence AI Intensive Technical Support through Made Smarter Yorkshire & Humber, Tadweld is helping to demonstrate how emerging technology can be translated into meaningful improvements on the factory floor and across wider business operations.”

http://www.tadweld.co.uk