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Introduction
According to a new survey from Make UK, The Manufacturers Organisation, only 2% of UK manufacturers state that AI has been widely embedded across their operations. Around 40% of manufacturers are only using AI in a few areas and 20% have not adopted any AI at all.
It is believed that major productivity gains can be generated in the manufacturing sector by adopting technological equipment and operational processes that utilise AI. Currently, only 11% of manufacturing businesses are using AI directly in production, 7% in the supply chain and 6% in quality control. This is a stark contrast to the 83% of manufacturers who limit AI to HR, finance and admin functions. This means they are using standard off the shelf and cloud AI packages that are typically used by all business types and do not directly plug into their production line manufacturing technology and machine tooling processes.
It is the case that over 50% of manufacturers blame a lack of front-line AI adoption on skills shortages in terms of digital expertise when integrating with traditional manufacturing processes. SMEs are requesting further support in terms of gaining access to expertise to help them integrate AI into their operations. There is also a need for AI training to be created to support those working in factory environments that more often than not include long shifts multiple times per week where on-the-job training would be most effective.
Businesses looking to invest in capital equipment and technology backed by AI can access grant funding to receive finance towards some of the overall eligible costs. Funding is typically available from UK councils, local business enterprise and sector specific support organisations.
What Are Some Of The Latest UK Purchasing Business Equipment Grants Funding Opportunities Available?
i) Business Development Support
Orkney Islands Council is offering grants towards capital expenditure that will support business growth. Some revenue costs, such as design costs, non-statutory training and marketing, can be considered eligible on a case-by-case basis. Eligible capital costs include purchase of machinery and equipment. Funding up to £55,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Greentech Business Growth Fund
Crawley Borough Council has funding available to support businesses that operate in the green-tech or low-carbon sectors to support projects and investments that will enable business growth and generate jobs. Eligible costs include equipment purchases and plant and machinery, including digital and software elements. Funding up to £50,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Business Growth Grant
Carmarthenshire County Council is providing funding available to businesses with plans to grow and/or ensure sustainability. The funding can cover costs including equipment, fixtures and fittings, IT hardware, specialist software and training. Funding up to £50,000 is available.
Application Deadline: 31st October 2026
iv) Economic Development Grant Scheme
Shetland Islands Council is providing grants for businesses to help them fund projects that will enable them to grow. Eligible costs include the purchase of new equipment. Projects include introducing new business activities, improved project quality and sustainable use of resources. Funding up to £25,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Made Smarter Adoption Programme 2026/27 – Yorkshire and the Humber
Made Smarter is running a scheme that aims to drive growth in manufacturing and engineering SMEs in the Yorkshire and Humber regions and help them boost productivity by helping them switch to advanced and automated technologies as well as improving employees’ overall digital skills. Eligible costs include the purchase of capital equipment. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Business Growth Grant – Enterprises Based in Commercial Premises
Rhondda Cynon Taf County Borough Council is running a scheme that aims to support sustainable local business to set up, grow and diversify, contributing to creating a vibrant and strong local economy. The funding can be used for capital expenditure including equipment, plant or machinery, internal renovation works, energy efficiency measures and new website development. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) NEZ Business Growth Fund
Newhaven Enterprise Zone is running a scheme that aims to support projects that enable business growth or improvement and align with the strategic objectives of the Enterprise Zone, demonstrating clear impact, benefits and value for money. Eligible projects include the development of new or refurbishment of existing employment space, low carbon investments and capital projects. Capital costs include purchasing of new equipment, machinery and low or zero-carbon commercial vehicles. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
viii) Innovation Worcestershire Grant
Worcestershire County Council is running a scheme providing funding towards the cost of activities directly related to the development and/or introduction to market of innovative products, technologies or services. Eligible capital costs include new tooling and equipment. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For UK Purchasing Business Equipment Funding Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested individuals and businesses can speak to advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.