Investment in British AI companies hits record levels as Tech Sec pitches UK as global magnet
British AI companies attracted record investment last year, driving the government's Plan for Change.
- Record £2.9 billion invested in British AI companies last year - with average deals worth £5.9 million, fuelling the Plan for Change.
- Regulators, investors and tech companies urged to hammer home the UK’s enterprise and opportunity credentials, with plans to corner a new AI trust industry.
- Red tape to be slashed for regulators in key sectors of the economy – speeding up the delivery of ground-breaking innovations.
Investors and regulators are being urged to go further and faster to deliver new growth for the UK’s AI sector as part of the government’s modern industrial strategy, as new figures show backing for British AI firms hit record levels last year.
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 alike.
It means British AI companies alone now contribute £11.8 billion to the UK economy – double the amount in 2023 - while AI employment tops 86,000 across the country. This record investment is unlocking new growth which will benefit communities - helping fuel further development and putting more money in people’s pockets through AI.
The figures also show 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.
In a speech to city bosses and tech firms at Mansion House this evening, the Technology Secretary called on industry to step up and match the UK government’s ambition when it comes to AI – in a bid to drum up further investment and see more AI companies call Britain home.
He pointed to the government’s efforts to slash red tape, build infrastructure such as data centres and attract top talent – with a fresh push to work in partnership with industry to maintain the UK’s position as a world leader.
Addressing the room the Technology Secretary said:
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.
Chancellor of the Exchequer Rachel Reeves said:
This government is slashing burdensome red tape and making the conditions for record investment in AI, so that once again the UK can lead the way.
This country has huge potential, but our economy has been stuck on pause for too long. By giving companies the right environment to innovate, grow and create jobs we are changing that, delivering economic growth to put more money in working people’s pockets.
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 launched today 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.
At its heart, AI assurance centres on ensuring independent experts can run the rule over AI systems – making sure they are trustworthy without leaving developers to mark their own homework. The government will now press ahead with plans to establish a dedicated AI assurance profession – bringing together key stakeholders from across the tech sector who will help strengthen the quality of this new standalone industry. This will support developers to better navigate and understand the regulatory landscape – saving time while also fostering public confidence and trust in the technology for users as its adoption is ramped up across the economy.
Its work will include the development of a professional code of ethics and detail the kind of access to models and systems that AI assurance professionals will need to carry out their work.
This will also give rise to a tailored skills and competencies framework that covers a range of areas from professional training and education to the establishment of a fully-fledged professional certification scheme.
Kicking off this work, a 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 – laying a foundation for a new industry geared towards growth and protecting the British public.
The announcements made today also include a new push from the Technology Secretary to slash regulatory burdens and get game-changing innovations for key sectors of the economy to market faster than ever before.
A £2.7 million boost will develop regulator capability in AI so that they are better able to streamline the regulatory environment and speed up the commercialisation of transformative technologies that will boost economic growth and improve the lives of the public.
Areas set to benefit from these plans include Ofgem being supported to develop an innovative AI tool to accelerate approvals for clean energy infrastructure, the Civil Aviation Authority using AI to analyse air accident reports and accelerate drone adoption, and the Office for Nuclear Regulation enabling the nuclear industry to use AI to safely and efficiently manage high risk nuclear waste.
Further Information:
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Full results of the 2024 AI Sector Study.
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Further details on the Roadmap to Trusted third-party AI assurance.
Industry reaction to this evening’s announcements:
Sharron Gunn, Chief Executive of BCS, The Chartered Institute for IT said:
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.
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