A record £2.9 billion has been invested in British AI companies last year, with average deals worth £5.9 million.

This has set the stage for further investments and new opportunities for both AI companies and financial backers alike.

Investors and regulators are being urged by the UK government to go further and faster to deliver growth for the UK’s AI sector following the record numbers.

British AI companies alone now contribute £11.8bn to the UK economy – double the amount in 2023 – while AI employment tops 86,000 across the country. The figures also show at least double the number of AI companies are now based in the Midlands, Yorkshire, Wales and North West compared to just 3 years ago.

“This government is slashing burdensome red tape and making the conditions for record investment in AI, so that once again the UK can lead the way,” chancellor of the exchequer Rachel Reeves said.

“This country has huge potential, but our economy has been stuck on pause for too long. By giving companies the right environment to innovate, grow and create jobs we are changing that, delivering economic growth to put more money in working people’s pockets.”

The technology secretary, Peter Kyle, is calling on industry to step up and match the UK’s government ambition when it comes to AI. He pointed to the government’s effort to slash red tape, build infrastructure such as data centres and attract top talent.

“We have learned the lesson of history: countries can only prosper if they get the big calls right, if they decide to go beyond the expected and embrace the future, to innovate not imitate – refusing to be constrained by the problems of today by taking up the challenges of tomorrow. In these uncertain times, I am certain that’s what it takes to get a global competitive edge,” he said.

“We want you to keep investing here, keep building here – list here, scale here. If you invest in Britain, you’ll share in that competitive edge.”

To capitalise on this momentum, the Technology Secretary has set out new plans to expand the UK’s AI offering, bolstering its sovereign AI capabilities by delivering new opportunities for the sector.

Public trust in the technology is key to its uptake – with more sectors of the economy primed to tap into the potential of AI.

It is a vital part of driving both workforce and investor confidence to spark the new jobs and economic growth which are already transforming communities. To capitalise on this potential, a new AI assurance roadmap launched today will look to add billions of pounds to the economy and create scores of new jobs by unlocking the growth of a key industry for the UK’s AI sector.

At its heart, AI assurance centres on ensuring independent experts can run the rule over AI systems – making sure they are trustworthy without leaving developers to mark their own homework.

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The government will now press ahead with plans to establish a dedicated AI assurance profession – bringing together key stakeholders from across the tech sector who will help strengthen the quality of this new standalone industry.

This will support developers to better navigate and understand the regulatory landscape – saving time while also fostering public confidence and trust in the technology for users as its adoption is ramped up across the economy.

Its work will include the development of a professional code of ethics and detail the kind of access to models and systems that AI assurance professionals will need to carry out their work.

This will also give rise to a tailored skills and competencies framework that covers a range of areas from professional training and education to the establishment of a fully-fledged professional certification scheme.

Kicking off this work, a new AI Assurance Innovation Fund worth £11 million will be launched – with applications due to open in the Spring.

This will support the development of new and innovative AI assurance tools to future-proof the market and ensure the UK is ready to response to rapid developments in AI capabilities – laying a foundation for a new industry geared towards growth and protecting the British public.