British AI companies secure record levels of investment

British AI firms secured record levels of investment in the last year, and brought in £11.8 billion to the UK economy.

A total of £2.9 billion in private support and average deals worth £5.9 million has set the stage for further investment and new opportunities for both AI companies and financial backers. As a result, government is calling on investors and regulators to go further and faster to deliver new growth for the sector.

The economic output of the UK’s AI sector has now doubled since 2023, with AI employment topping 86,000. New data also shows at least double the number of AI companies are now based in the Midlands, Yorkshire, Wales and North West compared to just 3 years ago. 

Responding to the successes of the UK’s AI industry, Technology Secretary Peter Kyle, called on investors and tech leaders to match the ambitions for the sector set out in the government’s industrial strategy in a Mansion House speech:

“We have learned the lesson of history: countries can only prosper if they get the big calls right, if they decide to go beyond the expected and embrace the future, to innovate not imitate – refusing to be constrained by the problems of today by taking up the challenges of tomorrow.  In these uncertain times, I am certain that’s what it takes to get a global competitive edge.

“We want you to keep investing here, keep building here – list here, scale here. If you invest in Britain, you’ll share in that competitive edge.“

To capitalise on this momentum, the Technology Secretary has set out new plans to expand the UK’s AI offering, bolstering its sovereign AI capabilities by delivering new opportunities for the sector. 

Public trust in the technology is key to its uptake – with more sectors of the economy primed to tap into the potential of AI.  

It is a vital part of driving both workforce and investor confidence to spark the new jobs and economic growth which are already transforming communities. To capitalise on this potential, a new AI assurance roadmap will look to add billions of pounds to the economy and create scores of new jobs by unlocking the growth of a key industry for the UK’s AI sector. 

As part of this,  new AI Assurance Innovation Fund worth £11 million will be launched, with applications due to open in the Spring. This will support the development of new and innovative AI assurance tools to future-proof the market and ensure the UK is ready to response to rapid developments in AI capabilities.

Sharron Gunn, Chief Executive of BCS, The Chartered Institute for IT commented:

“The government’s commitment to the creation of an AI assurance profession, whose practitioners are proud to be accountable to a code of ethics, is a huge step forward.

“It’s also right that a consortium, including professional bodies, will be tasked with developing this Code, and with recommending the right paths for registrations and certifications for AI assurance.

“The measures will grow this emerging market at the pace we need, and build public confidence that the people working on AI systems are responsible and trustworthy.“