Vassilia Orfanou, PhD, Post Doc
Writes for the Headline Diplomat eMagazine, LUDCI.eu
Introduction
The AI revolution is reshaping the way businesses operate and profoundly transforming industries. The changes are fueled by advances in automation, data analytics, and machine learning, among others, fully enabling efficiencies on a global scale.
The United Kingdom – a 21st century global leader in AI adoption, is experiencing the impact of the new phenomenon, with transformed services and enhanced efficiencies in various sectors. This article will examine the impact of the AI transformation in the UK, focusing on agriculture, public service, manufacturing, and professional services, showcasing AI’s potential in global industries.
AI Transforms UK Public Service: Eyeing a $1 Trillion Market by 2035
The UK is leveraging AI to improve public service delivery, focusing on AI capabilities and skills through targeted initiatives and funding. The government recently announced that it had set aside £110 million for the deployment of AI technologies across the public sector.
“The government wants to have a leaner state, using AI to improve service delivery in immigration, healthcare, crime prevention, education, and the wider public sector; it seeks to make efficiency savings and increase productivity,” Deputy Prime Minister Oliver Dowden highlighted on February 2024.
On February 6, 2024, the UK Secretary of State for Science, Innovation, and Technology, the Rt. Hon. Michelle Donelan, said to the Parliament: “The AI market will grow to $1 trillion by 2035, opening up new skills, jobs, and treatments for diseases. We’ve committed £100 million for AI innovation and regulation; we want to revolutionize our public service delivery, becoming a global leader in safe AI development and deployment.” The AI transformation is now a reality for the UK.
AI Revolutionizes UK Manufacturing: Slashing Costs and Amplifying Profits
In March 2021, the UK Chancellor of the Exchequer (now PM), Rishi Sunak, announced a groundbreaking “super-deduction scheme.” The scheme allowed businesses to claim a 130% capital allowance on plant and machinery investments, significantly lowering their tax bill by 25 pence for every £1 invested. It was phased out in 2023.
Jesse Lawrence, a marketing manager with dynamicconsultants.co.uk writes: “The UK manufacturing sector has had a rebound, with surging overseas market demands. The sector is benefiting from increased digitalization, innovation, and the adoption of industry-transforming trends. Many businesses reaped big from the super deduction scheme, encouraging investment in machinery and equipment.”
AI Innovates UK Agriculture: Saving Time and Boosting Efficiency
The integration of AI and robotics in agriculture is often motivated by labour shortages. AI robotics and advanced technology are revolutionizing UK farming. AI-driven robots routinely perform basic tasks on UK farms, including planting, weeding and harvesting.
The Small Robot Co, for example, uses its Perplant view to pinpoint every plant in fields located in Hertfordshire, providing field-scale actionable insights. The machine works in tandem with sprayers to deliver fertilizers and herbicides at specific locations. With this technology, The AI-driven robot stops blanket chemical applications, saving 90% in herbicide reduction and up to 24 in fertilizer reduction.
Ramsey Masri, CEO of CERES Imaging, a data analytics firm, writes in Business Matters, an online publication, said, “Our data analytics and advanced aerial imagery solutions are a game-changer. With this technology we analyze crop characteristics, transpiration, nutrient levels, water stress and chlorophyll. We give farmers real-time information related to field health conditions and precise recommendations on yield-protecting plant interventions leading to profitability.”
“We’ve realized profound results: We consistently see 8-12% increase in yield where technology is deployed. There’s a significant reduction in the quantity of water, pesticides and fertilizer used. Such efficiencies trigger positive knock-on effects for farmers, landowners and insurers; the environmental effects are positive. AI technology is poised to drive sustainable farming practices and innovation at a global scale.”
AI’s Impact on UK Business Services: Potential £500 Billion Boost by 2035
The UK is strategically placed to adopt AI in multiple sectors. Analysts expect AI to have a significant impact on professional services like accounting, consulting, and law.
Technology expert, Amy Dawson writes in news.microsoft.com, “The UK can get £500 Billion By 2035, embracing AI and cloud technology,” in her new report.
British Telecom is an example of a digitally transformed entity. The company streamlined processes, overhauling operations with EPI-driven automation, big data, and digital channels.
As a result, British Telecom cut partner onboarding times from 6 weeks to just 2 days. The company reduced costs and saved time with a 75% reuse rate and more than 700 available APIs. It enjoyed a 100% customer engagement rate over its self-service portal, which ran for more than 24 months without outages. The fortunes showcase the UK’s runaway success with targeted AI adoption.
Conclusion
AI is transforming multiple sectors across the UK, enhancing efficiency and safety in the transport sector, with reduced congestion and accidents. Government services are benefiting from AI-driven data analysis, enhanced service delivery, and improved decision-making capacities.
AI streamlines production processes in the manufacturing realm, reducing downtime through quality control and predictive maintenance. Collectively, the unprecedented advances illustrate AI’s pivotal role in driving growth, heralding a new era of excellence and technological integration in the country.
Call to Action
The UK’s focus on technological innovation is crucial for reducing strategic dependencies. The country’s ability to advance in AI leadership rests on its ability to take its computation capacity a notch higher. The government needs to provide the talent and fund strategic research programs, diverting resources towards science and technology infrastructure.
The manufacturing sector should strive to overcome the difficulties arising from structural changes and external shocks. It should seize the moment to utilize technological innovation and attract global demand. Ultimately, the UK will be well-placed to shape the global AI future and reap the benefits if it successfully navigates the challenges, emerging stronger and more influential in AI adoption.
References
A pro-innovation approach to AI regulation: government response. Available at: https://www.gov.uk/government/consultations/ai-regulation-a-pro-innovation-approach-policy-proposals/outcome/a-pro-innovation-approach-to-ai-regulation-government-response gov.uk, London. Accessed on 24 June, 2024.
AI Takes the UK By Storm: 5 Strategic Developments: News. Available at: https://managementevents.com/news/ai-in-the-uk/ME, Matchmaking Date, Zurich. Published on 17 October, 2023. Accessed on 24 June, 2024.
Artificial Intelligence – Updates for the Public Sector. Available at: https://www.lexology.com/library/detail.aspx?g=7f077dab-ed46-4fc3-8129-59a09061e1bc, Lexology. Published on April 24, 2024. Accessed on 24 June, 2024.
Artificial intelligence sector study. Available at https://assets.publishing.service.gov.uk/media/641d71e732a8e0000cfa9389/artifical_intelligence_sector_study.pdf. Published on March 202. Accessed on 24 June, 2024.
Bligh Curtis, The Challenges, Opportunities & Trend of UK Manufacturing 2023. Available at https://www.excellmetalspinning.com/uk-manufacturing-2023-trends/, Excell Metal Spinning Ltd | ISO 9001:2015 UK Manufacturer, Portsmouth. Published on 22 November, 2023. Accessed on 24 June, 2024.
Dawson Amy, AI could boost UK GDP by £550 billion by 2035, research shows. Available at https://ukstories.microsoft.com/?s=AI+could+boost+UK+GDP+by+%C2%A3550+billion+by+2035%2C+research+shows, Microsoft UK Stories. Published on 16 May, 2024. Accessed on 24 June, 2024.
Full expensing – a new and valuable capital allowance. Available at: https://www.pwc.co.uk/services/tax/insights/full-expensing-new-valuable-capital-allowance.html, PwC, London. Published on April 2024. Accessed on 24 June, 2024.
Hooson Mark, Pratt Kevin, UK artificial intelligence (AI) Statistics and trends in 2024. Available at: https://www.forbes.com/uk/advisor/business/software/uk-artificial-intelligence-ai-statistics-2023/, Forbes UK, London. Published on 11 June, 2024. Accessed on 24 June, 2024.
Lawrence Jesse, manufacturing technology in 2023 and 2024. Available at: https://dynamics-consultants.co.uk/blog/manufacturing-technology-in-2023-and-2024/, Dynamics Consultants, Southampton, UK. Published on 21 February 2024. Accessed on 24 June, 2024.
Masri Ramsey, agriculture is fertile ground for AI’s next revolution. Available at: https://bmmagazine.co.uk/business/agriculture-is-fertile-ground-for-ais-next-revolution/Business Matte. Published on 18 June, 2024. Accessed on 24 June, 2024.
Mitchell Sean, advancements in AI tipped to transform telecoms sector in 2024. Available at: https://telconews.co.uk/story/advancements-in-ai-tipped-to-transform-telecoms-sector-in-2024. TelcoNews UK, London. Published on 16 December, 2023. Accessed on 24 June, 2024.
Pardo Bedoya Santiago, Survey: Digitalisation and automation to be top focus for UK FS firms in 2024. Available at, https://www.theaccountant-online.com/news/survey-digitalisation-and-automation-to-be-top-focus-for-uk-fs-firms-in-2024/, The Accountant, London. Published on 14 November, 2023. Accessed on 24 June, 2024.
Police urged to double AI-enabled facial recognition searches. Available at: https://www.gov.uk/government/news/police-urged-to-double-ai-enabled-facial-recognition-searches, GOV.UK. Published on 29 October, 2023. Accessed on 24 June, 2024.
Public First, Available at: https://www.publicfirst.co.uk/. Accessed on 24 June, 2024.
Reynolds Peter, Full Expensing Capital Allowances & Super Deduction’s End. Available at: https://forrestbrown.co.uk/news/full-expensing-capital-allowances/ForrestBrown, London. Published on 30 April 2023. Accessed on 24 June, 2024.
The Digital Agriculture Revolution: Transforming the Future of Farming. Available at: https://strategicallies.co.uk/article/the-digital-agriculture-revolution-transforming-the-future-of-farming/. Strategic Allies, Russell Building, UK. Accessed on 24 June, 2024.
The state of AI in the UK: What we can expect from 2023 and beyond-The UK’s technology trade association. Available at https://www.techuk.org/resource/the-state-of-ai-in-the-uk-what-we-can-expect-from-2023-and-beyond.html, techUK News & Views. Published on 13 January, 2023. Accessed on 24 June, 2024.
UK Government doubles down efforts to deploy AI across the public sector- The UK’s technology trade associations. Available at https://www.techuk.org/resource/uk-government-doubles-down-efforts-to-deploy-ai-across-the-public-sector.html, techUK News & Views. Published on 17 June, 2024. Accessed on 24 June, 2024.
Use of artificial intelligence in government – NAO report. Available at: https://www.nao.org.uk/reports/use-of-artificial-intelligence-in-government/#:~:text=The%20UK%20public%20sector%20will,use%20of%20AI%20is%20responsible, National Audit Office (NAO), London, 13 May, 2024. Accessed on 24 June, 2024.
Van der Zwan Ruben, 19 Examples of Digital Transformation Companies. Available at: https://www.yenlo.com/blogs/examples-digital-transformation-companies/Yenlo,Beechavenue 16, Netherlands. Published on 21 June, 2024. Accessed on 24 June, 2024.
