If you run an SME manufacturer, Made Smarter is the closest thing the UK has to a direct grant for adopting AI and digital technology. Here’s how it works in 2026, cited to the official programme. (dgm is an independent partner that implements osFoundry; we are not a grant-writing service.)
What Made Smarter Adoption is
Made Smarter Adoption is a government-backed programme helping SME manufacturers adopt industrial digital technology — Industry 4.0 tools such as IoT, data, automation and AI. It is more than a grant: it offers free expert advice, digital transformation action plans, leadership and workforce training, intern support, and match-funded grants. The programme is backed by £147 million in innovation funding at the programme level.
The grant: up to £20,000 at 50%
The headline figure is match-funded capital grants up to £20,000, at 50% of total project costs (madesmarter.uk). In practice that means:
| Project cost | Grant (50%) | You fund |
|---|---|---|
| £20,000 | £10,000 | £10,000 |
| £40,000 | £20,000 (cap) | £20,000 |
| £60,000 | £20,000 (cap) | £40,000 |
The £20,000 cap and exact rates can vary by region and round, so confirm with your regional hub before planning.
Eligibility and the regional catch
Eligibility typically means an SME manufacturer of roughly 10–249 employees, under £50m turnover, with a physical manufacturing operation in an eligible region (Made Smarter).
The important limitation: Made Smarter is delivered region-by-region, not as a UK-wide scheme. Coverage currently spans eligible English regions including the North East, North West, West Midlands, West of England, Yorkshire & Humber, East Midlands and London. If your region isn’t running an active offer, you may not be able to access a grant — so check first.
What it can fund
Grants can fund hardware or software that digitally transforms a manufacturing operation — including AI and automation. Made Smarter even launched an AI adoption toolkit using a “Scan, Pilot, Scale” framework, so AI is explicitly in scope.
Typical AI/automation use cases for manufacturers: predictive maintenance, quality inspection, production scheduling and demand forecasting, plus back-office automation.
Where osFoundry and dgm fit
A Made Smarter grant funds the project; you still need to choose and implement the technology well. dgm helps scope and implement the AI/automation element on osFoundry — which lets you bring your own model keys, run on usage pricing with no per-seat fees, and self-host in your own cloud where data control matters on the shop floor. For UK data-sensitive workloads we’d use osFoundry’s EU region or a self-hosted deployment (it publishes US/EU/JP regions, not a UK one).
How dgm helps
dgm is an independent integration partner. The grant application and approval run through your regional Made Smarter hub, not dgm — we are not a grant-writing service and have integrated zero companies so far. We help define and build the AI part so the project delivers. To scope a Made Smarter-aligned AI project, book a consultation with dgm. General information only; confirm current grant terms with your regional hub.