UK govt announces £32 million in funding for new AI projects

In a move to bolster AI innovation, the UK government has announced funding for 98 new AI projects, allocating GBP £32 million to help drive efficiencies and reduce administrative tasks.

Rick McConnell, Chief Executive Officer at Dynatrace, welcomed the news, emphasising the strategic focus of these projects on specific, tangible use cases. "These 98 projects stand out because they are focused on specific and tangible use cases that have strong potential to drive immediate value for businesses and consumers," McConnell commented. He believes that these early successes will boost confidence in AI and spur further investments from the private sector, enhancing the UK's reputation as a global leader in AI innovation.

However, there have been setbacks in AI funding. A significant pledge of GBP £1.3 billion was recently shelved, with a reallocation of GBP £32 million to regional AI projects intended to support AI startups outside London. Ekaterina Almasque, General Partner at OpenOcean, pointed out that this reallocation could help rebalance the UK's tech landscape. "The GBP £32 million allocation to regional AI projects is a far cry from the retracted GBP £1.3 billion pledge, but it takes at least one step towards rebalancing the UK's AI landscape," said Almasque.

She highlighted that AI startups outside London had raised more funding on average from 2012 to 2021, although London reclaimed its dominance in recent years. In 2023, London-based startups secured 61% of AI funding. Almasque stressed the importance of supporting regional tech hubs to drive the next phase of British innovation. "Supporting AI projects across the UK isn't just about equity but maximising our economy's potential for growth," she stated. According to research conducted by the University of Oxford's Saïd Business School and OpenOcean, investment in areas like Nottingham, Yorkshire, and Cambridge could foster innovation outside the capital.

The debate on AI's integration into the workforce and the economy continues, with industry leaders urging a balanced approach to maximise benefits and mitigate disruptions. The focus is increasingly on equipping employees with the skills they need to thrive in an AI-enhanced job market and ensuring equitable support for tech innovation across the United Kingdom.

Research from Google indicated that two-thirds of British jobs could be "enhanced" by artificial intelligence (AI). This revelation has prompted discussions around how disruptive technologies like AI will reshape the workforce. Rosanne Kincaid-Smith, Chief Operating Officer at Northern Data Group, commented on the inevitability of such changes and the need for organisations to re-evaluate career paths with AI in mind.

Kincaid-Smith highlighted that generative AI would drive productivity and efficiency across various industries. "Manufacturing, finance, and legal services will see significant changes, with assembly lines, data entry, and document reviews automated. These roles will become more technological and creatively focused," she noted. She underscored that while AI could reduce headcounts, it could positively address long-standing skill shortages in these industries. "Rather than fight it, we need to re-evaluate career paths and invest in the next generation of employees," Kincaid-Smith remarked, envisioning a future with roles such as robotic engineers and data governors.

Echoing this sentiment, Mark Rodseth, Vice President of Technology EMEA at CI&T, emphasised the importance of training and tools for employees to leverage AI effectively. "Success isn't about replacing human ingenuity—it's about enhancing it. With the right training and tools, organisations can shape a future where AI isn't a threat but a catalyst for growth," Rodseth stated. He implored organisations to adapt to these advancements, warning that those who fail to do so risk being left behind.