New research has shown that registrations of technology companies using "AI" in their name in the UK have climbed significantly since 2022.
Analysis by business insurer Hiscox, using Companies House data, reveals that registrations of tech firms with "AI" in the name rose by 1,321% between November 2022 and April 2025, coinciding with the launch and subsequent widespread use of ChatGPT.
Hiscox filtered registration data by Standard Industrial Classification codes to focus on businesses operating in the technology sector, including software, IT services, data, telecommunications, and research and development. The findings indicate a compound annual growth rate of 67.7% for AI-themed company registrations over the past five years.
The period immediately after November 2022 marked a distinct increase, with entrepreneurs moving rapidly to register AI-related enterprises. Monthly registrations in April 2025 were 13 times higher than those reported in April 2020. If the growth trend persists, up to 333 new AI-related tech companies may register in April 2026 alone.
London dominates, but growth elsewhere is sharp
While the increase in AI-company registrations has occurred across the UK, London remains the primary centre. Between April 2020 and April 2025, 1,689 technology companies with "AI" in their name were registered in London, which is more than 30 times the number registered in Manchester, the nearest competitor. London accounts for 47% of all UK tech companies with "AI" in their name during this period.
Manchester recorded the next highest registrations with 53, followed by Birmingham with 49, Cardiff with 46, and Cambridge with 39. Glasgow registered 37, Leeds 34, Milton Keynes 32, Edinburgh 31, and Bristol 31 new AI-themed tech companies over the five years to April 2025.
Despite London's lead in absolute numbers, Manchester experienced an average year-on-year growth rate of 184%. Leeds, Glasgow, and Cardiff also saw triple-digit annual growth rates, suggesting the trend towards establishing AI businesses is spreading beyond the capital.
The data indicates that while London dominates in total numbers of firms, the rate of increase in other cities is notable. For instance, Leeds saw an average growth of 152% per year, while Glasgow registered average annual growth of 133%. Cardiff and Cambridge both recorded average annual growth of over 90%.
Risks in a growing sector
The rapid expansion of AI technology businesses in the UK brings both opportunities and new risks. As more companies incorporate AI tools and models into products and services, various challenges can arise, such as system errors or issues with underlying data.
Adam Atkins, Head of Technology at Hiscox, said, "The surge in AI company registrations across cities like Manchester, Leeds, and Glasgow highlights just how quickly the AI sector is expanding beyond traditional hubs.
As more tech businesses adopt and innovate with AI, it's vital they recognise the new risks that come with this growth. Our new PI cover is designed to help these companies navigate the evolving landscape with confidence, enabling them to focus on safe and responsible innovation."
Data sources and methodology
The analysis was based on active UK companies incorporated between April 2020 and April 2025, as recorded by Companies House. Company names were filtered for references to "AI" and "artificial intelligence". Only tech sector companies, as defined by specific Standard Industrial Classification codes, were included. Each company's city was determined according to its registered address, and the data was grouped to calculate year-on-year growth across cities.
ChatGPT, the AI tool launched in November 2022, reportedly draws around 5.24 billion monthly visits according to external web analytics data. This level of consumer and professional engagement appears to have contributed to the strong growth in company registrations within the AI sector.
The findings reflect a wider trend towards the proliferation of AI tools and services in the UK business landscape. As the number of registered AI technology companies continues to rise, discussions over relevant business protections and employee skills in artificial intelligence are likely to continue.