UK government pumps £200m into AI skills and adoption

The UK government has launched a £200m fund with the aim of upskilling businesses and helping them to adopt and scale artificial intelligence (AI).

The funding, which was announced at the AI Adoption Summit yesterday (8 June), will be used for a series of initiatives, including boosting AI adoption and launching AI Adoption Growth Labs for businesses and regulators.

Chancellor Rachel Reeves said AI innovation is one of her three “big choices to grow our economy”.

“Today we are going further and faster to drive AI adoption, give workers and businesses the tools and skills they need, and harness AI to deliver secure, resilient growth across the country,” she said.

As part of the scheme, the government will partner with businesses, trade unions and industry leaders to boost skills and growth in the sector. This will include big companies such as Cisco and IBM facilitating AI training and resources for small and medium-sized enterprises to explore how AI can work for them.

So far, 30 UK companies, including BT, Rolls-Royce, EDF, Accenture, LinkedIn, Sky and Accenture, have signed up to share data on how they are using AI, which will help shape future policy around AI adoption.

The £200m funding has been allocated to various initiatives, including a £100m matching investment for British companies as part of the government’s Bridge AI scheme, giving skills support to businesses.

The government is also expanding the Spärck AI Scholarships programme, which will sponsor up to 50 industry placements for top university students to get experience in UK companies, with HSBC, Octopus Energy and BT being among those signed up to the scheme.

The funding will also go towards new AI Advisory Growth Labs for businesses, regulators and experts to trial AI in working environments, while £5m will be invested into the already existing AI Growth Zones, and £53m is ringfenced for initiatives to boost AI adoption and innovation.

Technology secretary Liz Kendall said AI can transform lives for the better, but “only if everyone gets a stake in it”.

“That is why we are bringing together businesses, trade unions and workers in a shared mission to make sure no one is left behind,” she added. “By giving workers the skills they need, opening up opportunities for young people, and backing businesses of every size to adopt this technology, we can ensure AI delivers for everyone in every part of Britain.”

The government has also signed a joint statement with Google, Anthropic, Microsoft and OpenAI, in which the companies commit to close collaboration with the government and frontier AI labs to support the responsible development of AI.

The Department for Science, Innovation and Technology (DSIT) has also launched the Pro-Worker AI Adoption Prize, which aims to recognise UK organisations that adopt AI to increase productivity, upskill workers and create new jobs.

Nominations for the prize are now open, and the top 50 businesses will be shortlisted by an expert judging panel. UK business school professors will also write detailed case studies on the top three businesses to show how AI can benefit companies and their workers.