The UK government has announced £7m in funding to support 120 projects aimed at integrating artificial intelligence (AI) into small and medium-sized enterprises (SMEs). This initiative seeks to improve productivity and efficiency across various sectors, including agriculture, retail, transportation, and construction, as part of the broader Plan for Change strategy.
The funding is part of the newly launched AI Opportunities Action Plan, which serves as a roadmap to promote AI adoption nationwide. The Prime Minister, Sir Keir Starmer, stated that AI will play a crucial role in tackling economic challenges, improving public services, and driving growth. By embracing this technology, the UK aims to cement its position as Europe’s leading destination for AI businesses.
The 120 projects funded through this initiative will explore how AI can address practical challenges faced by businesses. Examples include predictive tools to help bakeries reduce food waste by forecasting sales, AI systems that detect potential potholes for cost-effective road repairs, and models to identify areas prone to mould growth in buildings, enabling early interventions.
“Putting AI to work right across the economy can help businesses cut waste, move faster and be more productive,” said the Science and Technology Secretary, Peter Kyle. “The huge range of projects receiving funding today, from farmers and bakers to those tackling potholes on our roads and mould in residential properties, demonstrates the truly limitless benefits of AI that are there for the taking.”
The government’s plan includes significant investments to expand the UK’s AI infrastructure. The AI Opportunities Action Plan, developed in consultation with AI adviser Matt Clifford, contains 50 recommendations, all of which have been accepted. These include increasing computing power twentyfold by 2030 and building a new supercomputer to support AI innovation. The plan is backed by £14bn in funding from technology firms and is expected to create over 13,000 jobs while boosting economic growth.
Small businesses will also benefit from the BridgeAI programme, which provides training, expert guidance, and access to scientific expertise to develop and deploy AI solutions. The focus is on enabling these companies to adopt cutting-edge technologies that address sector-specific challenges while improving efficiency.
Concerns about cybersecurity risks in SME AI adoption
While the initiative has been welcomed by many in the business community, some have raised concerns about the time and resources required to build AI infrastructure. Cybersecurity risks associated with the adoption of advanced technologies have also been highlighted as a critical issue.
“While we are excited about the UK government’s focus on unlocking the power of AI, we must not forget the increased threat this technology has created,” SoSafe’s CSO Andrew Rose told Elite Business. “AI is being deployed by criminals to create sophisticated phishing and social engineering attacks, widening the attack surface. It is therefore critical that public-private partnerships to boost AI rollout must be supplemented with the appropriate security measures.”
Read more: Inside the UK’s SME tech crisis
