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AI innovation in the UK triples post-ChatGPT

According to a recent Hard Numbers report, the advent of ChatGPT has led to a significant surge in AI innovation in the UK, with the number of new companies incorporating 'AI' in their names increasing threefold since its launch.

In the year following the introduction of ChatGPT, new AI-based company formations skyrocketed to 1,284, marking a 202% increase. This notable rise highlights a substantial shift in the UK's AI technology sector, indicating heightened innovation and investment.

The report, which sourced its data from UK Companies House, specifically focusing on firms with 'AI' in their titles, revealed London as the primary centre for these new AI enterprises. Out of the 1,284 new AI companies, 625 are located in London. This number significantly dwarfs the count in other cities, with Manchester, ranking second, housing only 21. This disparity not only emphasises London's pre-eminence in the tech industry but also reflects the limited progress in technological expansion across other regions of the country.

The comparative data on AI company launches in the UK is as follows:

  • In the 12 months up to 30th November 2022: 425 companies
  • In the 12 months following 30th November 2022: 1,284 companies

This illustrates a 202% increase.

When ranking cities by the number of AI companies since 30th November 2022, the top five are:

  1. London - 625
  2. Manchester - 21
  3. Birmingham - 16
  4. Glasgow - 16
  5. Cambridge - 15

Paul Stollery, Co-Founder and Creative Director of Hard Numbers, commented on the findings: “This data paints a clear picture: we have officially entered the fifth phase of the industrial revolution. The impact of AI will be as profound as that of any great technology to have come before it – from the first revolution of mechanisation and steam power, to the fourth, ushered in by the Internet.

“The impact of ChatGPT on innovation in the UK is as impressive as you would expect. There has been a three-fold increase in AI companies launching in the UK following the release. And the rate at which companies are launching is accelerating.

“London dominates to a disappointing extent, with as many AI companies launching as the rest of the country put together. Levelling up the country is a complex thing. But I thought we would have gotten further by the time we passed the Turing Test. Clearly, that is not the case.”