• New analysis, commissioned by the Royal Academy of Engineering, shows low uptake of productivity-improving technologies in engineering companies, which represent a third of the UK economy and 8.5 million jobs
• Gap in tech adoption highlights need for investment and targeted place-based support
New data, published today by the Royal Academy of Engineering and the AI-driven Enterprise Institute, shows that 57% of engineering and technology companies in the UK are not adopting productivity-improving technologies, including AI, robotics and wearables.
The study, which assesses more than 9,000 companies representing engineering and technology, looks at variations in adoption across UK regions, as well as across ten different technologies. It is the first systematic measurement of tech adoption at scale across the engineering and technology economy.
In spite of efforts to drive uptake of technology in industry, more than a third (36%) of companies studied are only working with one, whereas adoption of a broader range of technologies is needed to drive improvements in productivity.
The data highlights that the transition from early adoption of AI to mainstream use in industry has barely begun. AI and cognitive learning was the technology with the biggest variation in use, with 45% of high-tech industries deploying it, compared to just 10.5% of low-tech industries. In total, just 19% of companies are using AI and cognitive learning in a way that will drive significant productivity gains.
Robotics and automation are the most adopted technologies across all companies, whereas mobile and wearables is the least.
The data shows significant regional variations reflecting the distinct industry profile of the UK’s regional economies:
• London leads in AI and big data adoption, with 24% and 26% of companies embedding those technologies, but ranks last in use of robotics, and mobile and wearables
• The South East and West Midlands are joint leaders in robotics, used by 30% of companies in those regions
• Northern Ireland leads in industrial cybersecurity (16%) and AR/VR/MR adoption (7.5%)
• South West leads in the use of Digital Twins (19.5%)
• The North East leads adoption of mobile and wearable technologies (6%)
• The South East shows the highest overall adoption of all technologies, whereas Scotland has the lowest overall adoption. However, Scotland stands out as the only nation or region where the dominant technology is Data & Systems Integration
• No single region excels across all technologies
The study concludes that cost and complexity are not the only barriers to uptake: many firms do not recognise the tools they need already exist, and can deliver measurable returns of investment within months.
Dame Tamara Finkelstein DCB, CEO of the Royal Academy of Engineering, said:
"This data, which the Academy has produced in collaboration with AIDE Institute, shows the massive potential for UK engineering and technology industries, one third of the UK economy, to raise productivity and generate growth. It is staggering that 57% of these companies are not meaningfully adopting any of the ten technologies including AI and big data, robotics and cybersecurity. Where these technologies are adopted 84.5% are only taking advantage of one of ten possible. And there is significant regional disparity - while over half are adopting AI in London, it is less than a third in the North East. But this is an opportunity that must be grasped. Our existing companies can take advantage of mature technologies to raise their productivity, drive up revenue and create jobs. This transformation can be achieved through greater awareness and supporting company leadership to drive change. The Academy will play its part in delivering that support."
Paul Cheek, Co-Founder and CEO, AIDE Institute and Senior Lecturer in the MIT Sloan School of Management, said:
“The findings of this unprecedented study serve as a critical wake-up call for UK industry. With 57% of engineering and technology companies lacking adoption of a single Industry 4.0 technology—as determined by publicly observable objective data—we are leaving immense productivity, agility, and economic growth on the table. At the AI-Driven Enterprise Institute, we recognise that you cannot accelerate what you do not systematically measure and we're proud to have worked with the Royal Academy of Engineering to conduct this landmark research. This data provides the evidence needed to pivot away from ineffective blanket strategies and implement a renewed, highly targeted prioritisation of technology adoption. We must aggressively dispel the myth that technology transformation is too complex or costly; the tools businesses need to compete already exist and can deliver measurable returns on investment.”
The full Technology Adoption Index is the first phase of the Academy’s work to help de-risk and drive the adoption of technology by SMEs across the UK, with the ultimate goal of unlocking widespread productivity gains.
Notes for editors
- The Industry 4.0 technologies assessed in the Technology Adoption Index are:
o Robotics & Automation
o Data & Systems Integration
o Big Data & Analytics
o IoT & Sensors
o AI & Cognitive
o Digital Twins
o Cybersecurity
o Additive Manufacturing
o AR/VR/MR
o Mobile & Wearables - The Enterprise Hub supports talented entrepreneurs and decision makers to transform breakthrough engineering innovations into disruptive spinouts, startups and scaleups. It was ranked the number one startup hub according to the Financial Times/Sifted and 14th in Europe for 2025. Since launching in 2013, it has supported more than 600 researchers, recent graduates and SME leaders to start up and scale up businesses that can give practical application to their inventions. Hub Members have gone on to raise more than £3.8 billion in additional funding and create over 6,100 jobs.
- The Royal Academy of Engineering creates and leads a community of outstanding experts and innovators to engineer better lives. As a charity and a Fellowship, we deliver public benefit from excellence in engineering and technology and convene leading businesspeople, entrepreneurs, innovators and academics across engineering and technology. As a National Academy, we provide leadership for engineering and technology, and independent, expert advice to policymakers in the UK and beyond.
Our work is enabled by funding from the Department for Science, Innovation and Technology, corporate and university partners, charitable trusts and foundations, and individual donors.