British AI companies received £2.9 billion in private investment last year, with the average deal valued at £5.9 million, according to new UK government figures.

The sector now contributes £11.8 billion to the UK economy – double the amount recorded in 2023 and a new high. Around 86,000 people are employed in AI-related roles nationwide. The government also highlighted significant regional growth, with at least twice as many AI companies now based in the Midlands, Yorkshire, Wales, and the North West compared to just three years ago.

To build on this momentum, technology secretary Peter Kyle has unveiled plans to expand the UK’s AI ecosystem. This includes launching a new AI assurance roadmap and allocating £11 million for an AI Assurance Innovation Fund. In a recent speech to business leaders and tech firms, Kyle called on industry to match the government’s ambitions for AI.

The fund aims to support the development of AI assurance tools, ensuring the UK is prepared to respond to rapid advances in AI technology. Under the new plans, AI assurance centres will allow independent experts to scrutinise AI systems and ensure they are trustworthy. The government also intends to establish a dedicated AI assurance profession, bringing together stakeholders from across the tech sector to strengthen industry standards.

Officials claim these measures will help developers better navigate the regulatory landscape, improving public confidence and trust in AI. The government’s work will include developing a professional code of ethics and clarifying the level of access to models and systems that assurance professionals will require to carry out their work.

Several sectors are set to benefit from these initiatives. Ofgem will be supported in developing an AI tool to accelerate approvals for clean energy infrastructure. The Civil Aviation Authority will use AI to analyse air accident reports and support the adoption of drones, while the Office for Nuclear Regulation will enable the safe and efficient use of AI in managing high-risk nuclear waste.

“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,” said Kyle. “In these uncertain times, I am certain that’s what it takes to get a global competitive edge.”

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