The new figures reveal the UK is second only to the United States in AI investment, ahead of both China and the rest of Europe. The data comes as the UK Government seeks to showcase Britain as a world-class hub for innovation and to drive further growth across the sector.

The Government has pledged continued support to ensure AI companies can scale, thrive, and create high-skilled jobs across the country. Efforts include expanding access to talent, encouraging collaboration between academia and industry and boosting investor confidence in the UK as a stable, forward-looking tech ecosystem.

To capitalise on this momentum, the Technology Secretary, Peter Kyle, has set out new plans to expand the UK’s AI offering and strengthen its sovereign AI capabilities by creating new opportunities for the sector. Public trust in the technology is central to its uptake, with more industries primed to adopt AI solutions to drive productivity and growth.

A new AI assurance roadmap launched on 3rd September 2025 will underpin this effort, designed to add billions to the economy and create new jobs by unlocking growth in the UK’s AI sector. Work will include the development of a professional code of ethics, a skills and competencies framework and a recertification scheme to guarantee AI systems are trustworthy and transparent.

Stuart Harvey, CEO of Datactics, commented: "The AI arms race is continuing to grow, driving efficiencies through automation and transforming productivity, so it's no surprise to see significant investment into the country's most innovative companies. But AI systems are only as good as the data they're built on.

"Without clear data quality, structure and governance, investment risks being poured into systems that are opaque, biased, or unfit for purpose. Establishing clear data readiness frameworks is key to successful AI deployment, putting in place the necessary infrastructure and governance systems to ensure that data is foundational to AI technology. With that, businesses can realise their AI ambitions, driving measurable ROI with trustworthy, accurate systems."

The Government also announced an £11 million AI Assurance Innovation Fund to develop new tools and future-proof this market, alongside a £2.7 million boost to strengthen regulator capability in AI. These steps aim to cut regulatory burdens and speed up adoption across critical industries, with early beneficiaries including energy, aviation and nuclear regulation.

Chris Davison, CEO of NavLive, said: "This investment is a starting point but turning it into long-term impact will require more than capital. Without access to top talent, supportive AI regulation and meaningful R&D incentives, funding alone won’t be enough to sustain growth or secure the UK’s place in the global AI race. The challenge now is to build the right conditions for innovation to thrive, ensuring AI delivers smarter solutions that genuinely strengthen the economy and create lasting value for society.”

Investment in UK AI has more than doubled over the past five years, with leading companies such as healthcare, finance and climate tech securing record levels of backing. This rapid growth is driving economic prosperity and is set to play a pivotal role in shaping the future of Britain’s digital economy.

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