New figures show that backing for British AI companies reached record levels last year, meaning they now contribute £11.8bn to the UK economy and employ over 86,000 people.

A total of £2.9bn in private support and average deals worth £5.9m have set the stage for further investment and new opportunities for both AI companies and financial backers.

This record investment is unlocking new growth and helping to fuel further development.

Investors and regulators are now 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.

AI companies are no longer London-centric

The figures also show that at least twice the number of AI companies are now based in the Midlands, Yorkshire, Wales, and the North West compared to just three years ago.

In a speech to city bosses and tech firms at Mansion House this evening, the Technology Secretary, Peter Kyle, 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 pop up across various parts of the UK.

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.

“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,” he said.

Public trust is key to AI uptake

Public trust in the technology is crucial to its adoption, with more sectors of the economy poised to leverage the potential of AI.

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.

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.”

At its heart, AI assurance centres on ensuring that independent experts can review AI systems, ensuring they are trustworthy without leaving developers to self-assess.

The government will now press ahead with plans to establish a dedicated AI assurance profession, bringing together key stakeholders from across the tech sector to help strengthen the quality of this new, standalone industry.

Other critical industries set to benefit from AI

The announcements made today also include a new push from the Technology Secretary to reduce regulatory burdens and bring game-changing innovations to key sectors of the economy to market faster than ever before.

Areas set to benefit from these plans include:

• Ofgem is being supported to develop an innovative AI tool to accelerate approvals for clean energy infrastructure.
• The Civil Aviation Authority is using AI to analyse air accident reports and accelerate drone adoption.
• The Office for Nuclear Regulation is enabling the nuclear industry to use AI to safely and efficiently manage high-risk nuclear waste.

A £2.7m boost will enhance regulator capability in AI, enabling them to streamline the regulatory environment and accelerate the commercialisation of transformative technologies that will boost economic growth and improve the lives of the public.