Artificial Intelligence dominates headlines.
Every week there seems to be a new AI tool, a new breakthrough, or a new prediction about how technology will transform the way we work.
Yet despite all the attention, the reality inside many businesses looks very different.
According to research published by the UK Government’s Department for Science, Innovation and Technology (DSIT), only 16% of UK businesses are currently using AI. A further 5% plan to adopt it, leaving nearly 80% with no plans to implement AI at all.
For manufacturers, the picture is even more striking.
Research published by the OECD in February 2026 found that only 10.6% of manufacturing businesses across Europe have adopted AI, making manufacturing one of the least digitally advanced sectors despite having some of the biggest opportunities to benefit from the technology.
Manufacturers Know AI Matters. So Why Isn’t It Being Adopted?
The challenge isn’t usually a lack of awareness.
Most manufacturing leaders understand that AI has the potential to improve efficiency, reduce waste, and support better decision-making.
The challenge is knowing where to start.
Questions we regularly hear include:
- What practical value will AI bring to our business?
- How much will implementation cost?
- Do we have the right data?
- Will our team actually use it?
- How do we calculate ROI?
These concerns are reflected in both the UK Government and OECD research, which identified skills shortages, implementation costs, and uncertainty around returns as the biggest barriers to adoption.
For many businesses, AI still feels like a future project rather than a current business priority.
The Biggest AI Opportunities Are Often the Most Practical
When people think about AI, they often imagine futuristic robots or fully autonomous factories.
The reality is much less dramatic and far more useful.
Some of the most successful AI projects in manufacturing today focus on solving everyday operational challenges.
These include:
Predictive Maintenance
Using machine data to identify potential equipment failures before they happen, reducing downtime and maintenance costs.
Quality Control
Detecting defects and inconsistencies earlier in the production process, helping improve product quality and reduce waste.
Supply Chain Optimisation
Improving forecasting, inventory management, and purchasing decisions through smarter analysis of operational data.
Reporting and Decision Making
Using AI to analyse large volumes of business information and provide faster insights for management teams.
The common factor is simple.
AI delivers the greatest value when it supports existing processes rather than trying to replace them.
The Real Challenge Is Not AI. It’s Data.
One of the biggest misconceptions about AI is that businesses can simply switch it on and start seeing results.
Successful AI projects depend on having reliable data, connected systems, and visibility across operations.
If information sits across spreadsheets, disconnected software platforms, paper records, or multiple databases, AI has very little to work with.
This is why many manufacturers begin their AI journey by improving their digital foundations first.
ERP systems, automation, and integrated business processes often create the environment that allows AI to deliver meaningful results later.
Why Manufacturers Should Start Exploring AI Now
The businesses gaining the most value from AI today are not necessarily the ones making the biggest investments.
They are the businesses taking practical first steps.
They are identifying operational challenges, improving data quality, connecting systems, and finding areas where technology can support their teams.
The longer businesses delay, the wider the gap may become between organisations embracing digital tools and those relying on traditional processes.
AI may not replace manufacturers.
But manufacturers using AI may increasingly outperform those who are not.
How Target Integration Can Help
At Target Integration, we help manufacturers identify practical opportunities for digital transformation, automation, ERP adoption, and AI implementation.
Our focus is not on technology for technology’s sake.
It is on helping businesses solve real operational challenges, improve visibility, and create stronger foundations for future growth.
After nearly two decades of supporting manufacturers across the UK and Ireland, we’ve seen first-hand how the right technology, implemented properly, can transform operations.
Visiting Subcon 2026?
Target Integration will be exhibiting at Subcon 2026 in Birmingham on 3rd and 4th June.
If you’re attending the event and want to explore how AI, ERP systems, and digital transformation could support your business, visit the team at Stand C90.
We’ll also be offering complimentary Digital Health Checks to help manufacturers identify where technology can deliver the quickest and most measurable returns.
