This initiative targets sectors including law, accountancy, scientific research, and human resources, with the UK Government offering up to £10,000 per business to integrate state-of-the-art technology.

Eligible SMEs will explore AI's potential to simplify tasks, enhance productivity, and spur growth. Applications in the accounting sector might involve generative AI tools such as ChatGPT for drafting documents and developing anti-fraud software. Meanwhile, legal professionals could use AI to distil lengthy contracts into concise summaries, thus saving valuable time for other critical tasks.

The programme is designed to not only foster productivity and cost efficiency but also to empower SMEs to discover new growth avenues, providing enhanced services to consumers. An estimated 2,000 SMEs employing fewer than 250 staff stand to benefit from this initiative, with reimbursements covering up to 50% of the AI skills training costs.

Despite the irreplaceable value of human skills like judgement and empathy in the workplace, integrating AI into routine tasks such as data entry and paperwork could significantly boost efficiency. This strategy is part of a broader effort to future-proof businesses and encourage AI skills investment to maintain a competitive edge.

Administered through the Government’s Flexible AI Upskilling Fund, the pilot programme supports SMEs in the Professional and Business Services (PBS) sector. Interested companies have until 31 May to apply for grants intended for training that must be completed by March 2025.

Businesses in professional services such as law, accounting, and market research, as well as those in business services including HR, administration, and leasing, are already witnessing the advantages of AI. These technologies are being used to analyse vast text volumes, manage customer service queries, and generate creative content for various uses such as advertising and blogs.

Moreover, AI's impact is profound in specialised tasks like drafting legal documents and creating virtual architectural renderings. Although smaller firms recognise AI's potential benefits, many lack clarity on the appropriate training for their employees.

Coinciding with the fund launch, the AI Skills for Business Framework was introduced. This framework, developed by Innovate UK and The Alan Turing Institute with support from the Department for Science, Innovation and Technology, will guide businesses in identifying necessary skills for leveraging AI effectively.

These initiatives are part of the government's comprehensive support strategy for UK SMEs, which also includes the ‘Help to Grow’ campaign led by the Department for Business and Trade. The campaign aims to consolidate resources to support business development and success.

In addition to the Flexible AI Upskilling Fund, the Government has initiated the Help to Grow: Management and Help to Grow: Management Essentials programmes to enhance leadership and management skills within SMEs, further establishing 2024 as a pivotal year for these businesses. This integrated approach ensures that British SMEs are well-equipped to navigate the technological landscape of tomorrow.

Technology Secretary Michelle Donelan said: “Businesses of all sizes and across all sectors, from architecture to law and HR to advertising, are identifying the huge benefits that AI can bring in helping staff boost their productivity while cutting business costs.

“I have launched this new pilot to help SMEs interested in AI adoption make it a reality by contributing towards the cost of upskilling their employees – ultimately increasing efficiency so companies can retain a competitive edge in an increasingly digital world.”