The government just announced a £7 million funding boost for 120 artificial intelligence projects aimed at supporting small businesses. This funding comes from the UK Research and Innovation (UKRI) Technology Missions Fund and is part of the Innovate UK BridgeAI program. It builds on the “AI opportunities action plan” they rolled out this week.
Additionally, they’re putting £1 million towards developing custom AI tools to help teachers and transform the education sector. Labour believes this funding will empower small businesses to test AI across various fields, including agriculture, transport, and construction.
One exciting project involves a bakery using AI to predict sales, helping them decide how much of each product to bake daily. Another initiative aims to implement AI technology to identify potential pothole locations before they happen, allowing for quicker and cheaper road repairs. There’s also a trial where AI is used to detect moisture in buildings, addressing mold issues before they create serious health risks.
Science and technology secretary Peter Kyle emphasized the benefits of these AI trials, saying that using AI across the economy can help businesses reduce waste, speed up processes, and increase productivity. He highlighted the diverse range of funded projects, from farmers to bakers to those addressing potholes and mold, showing just how much potential AI holds for various industries.
This funding is part of UKRI’s broader £320 million investment in technology missions that will enhance capabilities in AI, engineering biology, telecommunications, and quantum technologies from 2023 to 2025 and beyond. Along with the financial support, Innovate UK’s BridgeAI program will help businesses access training and expertise to develop their AI innovations, with support from a consortium including the Digital Catapult and The Alan Turing Institute.
Esra Kasapoglu from UKRI Innovate UK pointed out that adopting AI is crucial for the UK’s economic growth. This investment will help more companies explore AI’s potential in their operations and continue developing impactful projects.
On another positive note, HSBC recently reported a strong year for AI investment. In 2024, UK-based AI startups raised $4.2 billion in venture capital—up 31% from the previous year. This funding accounted for over a quarter of all venture capital raised, and AI companies secured five massive rounds of funding, including a remarkable $1.1 billion for Wayve.