Based on a recent study of over 700 C-Suite level executives globally, BearingPoint has recognised that the UK Automotive and Manufacturing sector shows a balanced to cautious approach toward AI adoption, reflecting a complex landscape of capabilities, opportunity and challenge. While 52% of respondents identify as AI Skeptics or AI Cautious, 48% are AI Enthusiasts or Experimenters, indicating a sector still divided on AI adoption. Notably, 20% of the C-suite in this industry are AI Enthusiasts — the second-highest proportion across all UK industries — which may be reflective of many organisations current use of automation and autonomy across their plants and products.
UK Automotive and Manufacturing C-Suite's Position and Attitude in Organisation towards AI Transformation
The sector benefits from active C-suite involvement, with 80% of executives directly engaged in AI-related decision-making, the highest rate across all UK industries. Compared to the UK average of 33%, the Automotive and Manufacturing industry shows strong leadership engagement and reflects a strategic commitment to exploring AI's potential and integrating it within organisational practices.
The UK is leading in AI adoption within the Automotive and Manufacturing sector, with 24% of respondents actively adopting AI technologies. This is the highest adoption rate, showcasing the UK's proactive stance in AI integration compared to Germany (19%) and France (12%). Additionally, 44% of UK organisations are in the process of implementing AI, with some form of technology already in place. However, 32% of companies are just beginning to consider or explore AI options, demonstrating a varied pace of adoption within the varied subsector landscape.
Key concerns remain around data privacy and the talent gap for skilled personnel, which align with the broader UK view on AI implementation. The most significant challenges cited include addressing skill gaps and AI-specific training needs, ensuring data security and compliance, and navigating ethical considerations associated with AI technologies.
Looking to the future, 64% of respondents believe that Generative AI will significantly impact their organisation over the next 5-10 years, with 16% stating that the impact will be transformational—one of the highest rates across industries. This optimism highlights the growing recognition of AI's potential to drive innovation and competitive advantage in the Automotive and Manufacturing sectors.
However, this forward-looking view is tempered by the need for foundational capabilities. Only 33% of organisations report being fully ready in terms of data availability and quality for Generative AI projects, and just 37% have a well-documented AI adoption strategy. Even among the most advanced organisations, the focus is on productivity and efficiency gains while balancing the maturity of AI technologies with related risks.
In summary, the UK Automotive and Manufacturing sector is making notable strides in AI adoption, with cross-country comparisons revealing a leading position. However, realising AI's full potential will require overcoming significant challenges in data privacy, talent acquisition, and ethical considerations. Building strong foundations in strategy, governance, and skills will be essential for this sector to harness AI's transformative impact in the coming years.
Please note all data is rounded to the nearest whole number