£6.4 million AI upskilling fund launched to help SMEs benefit from new technology

Small and medium sized enterprises (SMEs) can now bid for a share of a £6.4 million government fund to help train their workforce to use artificial intelligence (AI) to boost productivity and efficiency.

Sectors able to benefit include law, accountancy, scientific research and human resources, with the UK Government making up to £10,000 available for each business so they can embrace cutting edge and efficiency boosting new technology.

SMEs in these areas will be able to tap into the power of AI to streamline tasks, boost productivity, and drive growth. Applications that businesses could take advantage of including the use of generative AI to draft documents, new software to tackle fraud, or use of AI analysis tools to summarise or identify key points in contracts and other lengthy documents. Whilst human supervision, judgement, creativity and empathy remain vital requirements in the workplace, augmenting AI into monotonous tasks like inputting data and filling out paperwork can increase speed and efficiency and play a major part in increasing business productivity.

Funding is expected to support around 2,000 SMEs across the country, and successful applicants will be reimbursed for up to 50% of the cost of investment in AI skills training.

Delivered through the UK Government’s Flexible AI Upskilling Fund, this initial pilot launched 1st May will support SMEs in the Professional and Business Services (PBS) sector, with SMEs encouraged to apply before 31 May for grant funding to deliver training before March 2025.

Technology Secretary Michelle Donelan said:

“Businesses of all sizes and across all sectors, from architecture to law and HR to advertising, are identifying the huge benefits that AI can bring in helping staff boost their productivity while cutting business costs.

“I have launched this new pilot to help SMEs interested in AI adoption make it a reality by contributing towards the cost of upskilling their employees – ultimately increasing efficiency so companies can retain a competitive edge in an increasingly digital world.”

Launching alongside the Flexible AI Upskilling Fund pilot is the AI Skills for Business Framework. This will help businesses to grip the huge opportunities AI has to offer, driving innovation and future-proofing their workforce. With the support of the Department for Science, Innovation and Technology, Innovate UK and The Alan Turing Institute have developed this new framework for businesses, to identify the skills and knowledge their employees might need to use AI in the workplace and make the most of emerging technologies.