Manufacturing: Automation and AI



Over the past two decades, manufacturing has become a battleground for automation and digital adoption. While countries like China and South Korea have surged ahead, the UK has struggled to keep pace. Nearly half of British manufacturers report that a lack of technical skills is the biggest barrier to leveraging robotics and AI effectively, and projects often stall post-implementation due to insufficient guidance. Despite the government’s Industrial Strategy targeting a digitally literate workforce by 2035, industry leaders warn that the UK cannot wait over a decade to catch up. Without urgent investment in SME-focused digital skills and simplified support systems, estimates suggest the country could forfeit a potential £150 billion boost to GDP by 2035.

Global Leaders: China, Russia, and Brazil

Globally, the picture is strikingly different. China has rapidly embraced manufacturing automation, installing a record number of industrial robots in recent years  – with robot density surpassing the US in 2021, reaching over 400 units per 10,000 manufacturing workers. Beijing’s long-term industrial policy combines generous subsidies, workforce retraining, and support for SMEs, enabling high-value sectors such as electronics and automotive to flourish. By integrating AI-driven production monitoring and predictive maintenance, Chinese manufacturers have increased productivity while reducing defects and downtime.

Russia is following a more centralised, policy-driven approach. Its Industry 4.0 RU initiative prioritises digital twins, cyber-physical systems, and AI-enhanced factory monitoring to modernise traditional heavy industries. However, the adoption rate is slower than China’s due to gaps in workforce training and underinvestment in R&D. Experts note that Russia’s competitiveness hinges on scaling AI solutions while simultaneously addressing the skills shortage in both technical and managerial roles.

Brazil also represents a promising case from the Global South. The country’s automation and industrial controls market was valued at USD 10.5 billion in 2024 and is projected to reach $17.8 billion by 2033, growing at nearly 6% annually. Government programs such as MetaIndústria are providing SMEs access to advanced manufacturing laboratories and digital innovation hubs. These initiatives not only accelerate AI and automation adoption but also foster higher-quality production, reduce defects, and create skilled employment opportunities in sectors ranging from automotive to agro-processing.

Global Leaders: China, Russia, and Brazil

Comparing these trajectories offers key lessons for policymakers and industry leaders. First, coherent, long-term strategies that integrate digital skills training, SME support, and financial incentives are essential. South Korea’s example, training 40,000 people to operate automated systems while guaranteeing tax credits through 2029 – shows that coupling human capital development with policy certainty produces measurable productivity gains. Second, early investment in data-driven production and AI monitoring systems can yield a competitive edge in both productivity and quality, as seen in China’s high-density robotics factories. Third, equitable access is crucial. Fragmented systems like the UK’s risk leaving SMEs behind, while coordinated hubs, as in Brazil and Switzerland, enable smaller firms to benefit from advanced technologies.

Looking ahead, countries that marry AI-driven manufacturing with accessible training, robust SME incentives, and forward-looking industrial policy will dominate global competitiveness. For the UK, bridging the skills gap and simplifying innovation pathways is urgent. For Russia and Brazil, scaling digital adoption while strengthening technical education will be the differentiator. China’s continued edge demonstrates how state-backed AI and automation investment, combined with workforce planning, can transform entire industrial sectors.

Automation and AI are no longer optional; they are central to manufacturing resilience, efficiency, and future growth. The gap between nations is measurable today, and the leaders of tomorrow will be those who turn policy, training, and technology into a seamless ecosystem capable of delivering both economic growth and high-value employment.

By Chloe Maluleke 

Associate at The BRICS+ Consulting Group 

Russian & Middle Eastern Specialist 

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