Driving AI-enabled innovation in the North East through industry collaboration

By Eric Li
Professor of Research

Collaboration between universities and industry is becoming increasingly important as businesses seek to adopt digital technologies, improve efficiency and remain competitive in a rapidly evolving landscape. In the North East, this collaboration is playing a critical role in supporting regional innovation, enhancing productivity and driving long-term economic growth.

Many organisations across the region, particularly in sectors such as chemical manufacturing, materials design, marine systems, construction, software development, and industrial and process engineering, are facing common challenges. These include fragmented digital systems, underutilised data, and growing pressure to improve efficiency, reduce costs and operate more sustainably. While large volumes of data are often available, the ability to translate this into actionable insight remains limited.

At Teesside University, our Knowledge Transfer Partnerships (KTPs) provide a structured and effective mechanism to address these challenges. Over the past year, a team led by Eric Li and Perk Lin Chong has developed a strong and growing portfolio of KTP projects focused on artificial intelligence (AI) and digital systems. The team has successfully secured five funded KTPs with companies based in the North East, with a further project in development for submission in June 2026. This portfolio reflects both the increasing demand for digital transformation and the value of close collaboration between academia and industry.

The projects focus on developing integrated AI-enabled digital solutions that combine data, modelling and intelligent algorithms to improve industrial processes and decision-making. A central theme across the portfolio is the use of digital twin technologies to create virtual representations of physical systems. These allow organisations to simulate operations, identify inefficiencies and optimise performance before implementing changes in practice. Alongside digital twins, the projects also develop AI-driven modelling systems to enhance production performance and predict system behaviour, as well as intelligent engineering design tools that automate complex workflows and reduce manual effort. In addition, data-driven platforms are being created to support real-time monitoring, control and decision-making. Together, these approaches integrate AI into broader industrial digital systems, enabling improved coordination, efficiency and operational performance.

The impact of this work is already becoming evident. By embedding AI and digital technologies into core business processes, companies can reduce manual intervention, improve consistency and quality, and make faster, data-informed decisions. This leads to tangible benefits, including reduced operational costs, increased production efficiency, shorter design and delivery cycles, and enhanced competitiveness in both domestic and international markets. Furthermore, digital twin and AI-based optimisation approaches support more sustainable operations by reducing material waste, improving energy efficiency and enabling better resource management.

KTPs are central to achieving these outcomes; businesses can access cutting-edge academic expertise while embedding a dedicated associate within the organisation to drive implementation. This ensures innovation is not only developed but fully integrated into day-to-day operations, creating long-term capability and leaving a lasting legacy within the business. Beyond individual projects, this work contributes to a broader regional impact. By collaborating closely with companies across the North East, these KTPs are helping to build a stronger ecosystem centred on AI, digital engineering and advanced manufacturing. This supports business growth, strengthens local supply chains, and enhances the region’s ability to attract further investment and innovation. Looking ahead, there are significant opportunities to expand this work. As more organisations recognise the importance of AI and digital transformation, partnerships between academia and industry will become increasingly vital. Through KTPs, we aim to continue supporting businesses across the region and beyond in adopting advanced technologies, improving performance and driving sustainable, long-term innovation.

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