Flexible AI Upskilling Fund pilot: open for applications
The Flexible AI Upskilling Fund pilot scheme will support SMEs in the Professional and Business Services Sector by match-funding AI skills training for their employees.
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The Department for Science, Innovation and Technology (DSIT) recently announced a £7.4 million pilot scheme to subsidise the cost of AI skills training for small and medium-sized enterprises (SMEs) in the Professional Business Services sector. £6.4 million of grant funding is available.
Through this pilot programme, eligible business can apply for funding for up to 50% of the cost of AI skills training. This is training which supports employees to develop their technical skills and/or understanding of AI to be able to develop, deploy, or use AI in their role. The application window is now open until 31 May.
Objectives of the programme
Artificial Intelligence holds huge opportunities to drive productivity and prosperity across the UK economy. It has the potential to increase UK GDP by up to 10.3% by 2030 – the equivalent of an additional £232 billion - and businesses who adopt AI are more likely to be successful than those that do not.
But evidence shows that a lack of AI skills in businesses is hindering AI adoption, in part due to low investment in AI upskilling in UK businesses, particularly in smaller companies.
This pilot programme will test whether training SMEs in AI maximises the value of adoption AI. Specifically, whether government support in the form of match-funding is an effective way of increasing employer-led upskilling in AI, and whether increased skills translate into AI adoption and firm-level productivity benefits.
Specifically, the pilot has the following objectives:
1. To stimulate employer investment in AI training
2. To address AI skills gaps in the UK workforce limiting AI adoption
3. To measure the impact of AI upskilling on business productivity and outcomes
Eligibility
The funding competition is open to applicants who:
- are registered and operate in the UK
- employ between 1-249 employees in the UK
- are defined as an SME per the BEIS SME Action Plan
- have been operating for at least 1 year
- are able to match-fund 50% of the cost of the training, and
- operate in the Professional and Business Services (PBS) sector (see the guidance attached for definition)
Please see the guidance attached for further detail on eligibility and application criteria.
Open for applications
Applications have now opened. £6.4 million of grant funding is available, and eligible businesses have until 12pm on 31 May to apply for funding. Please apply for the programme through Apply for A Grant.
We have published a video of the pre-launch information webinar:
Flexible AI Upskilling Fund pilot: Pre-launch Information Webinar Recording
Introducing Find a Grant
Introducing Find a Grant for grant applicants.
Available funding
Applicants can bid for different funding amounts depending on the size of their business.
| Business size | Headcount | Turnover | Balance sheet total | Maximum grant funding available (per applicant) |
|---|---|---|---|---|
| Micro | Under 10 | Under €2 million | Under €2 million | £2,500 |
| Small | Under 50 | Under €10 million | Under €10 million | £5,000 |
| Medium | Under 250 | Under €50 million | Under €43 million | £10,000 |
The aim of the scheme is to subsidize the cost of AI skills training up to a ratio of 1:1. For example, a small-sized business can bid for up to £5,000 of grant funding to pay for 50% of AI skills training which costs £10,000. If the training cost £8,000, the applicant can only bid for £4,000 of grant funding.
Unsure about how to understand your AI upskilling needs, or need help identifying the type of training your employees would benefit from?
DSIT, in collaboration with InnovateUK and the Alan Turing Institute, has published cross-sectoral guidance outlining the relevant skills and competencies employees need to use AI in a business setting. Please visit the Turing website where you can find the guidance and other useful support for identifying your AI skills needs.
We have also developed a short guide to help you make decisions on training provider and course quality when procuring AI training for your business. Please see Annex C in the guidance.
Background
This pilot scheme is funded through the £37.5 million Labour Market Evaluations and Pilots Fund, announced by the Chancellor at Spring Budget 2023 to continue to build the evidence base on the effectiveness of policies to improve labour market outcomes.
Last updated 1 May 2024 + show all updates
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Flexible AI Upskilling Fund pilot now open for applications: guidance and new privacy notice published.
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Information added for training providers to register their interest to get updates on the pilot. Expression of Interest for training providers privacy notice published.
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First published.