Small and medium sized enterprises (SMEs) across the UK can apply for a grant of up to £10,000 for AI training as part of the UK government’s £6.4m upskilling fund.

Under the new Flexible AI Upskilling Fund, small businesses in the professional and business services sector will have until 31 May to apply for funding, in which they will be expected to deliver training by March 2025.

The fund is supported by the Department for Science, Innovation, and Technology (DSIT), Innovate UK, and the Alan Turing Institute.

The pilot programme will allow businesses to apply for funding that covers up to 50% of the cost of AI skills training.

While the UK aims to be an AI superpower, the ongoing skills gap in tech is only heightened in terms of emerging AI. As larger companies continue to adopt the new technology en mass, small organisations fall at risk of falling further behind.

Reskilling and upskilling initiatives are vital in combatting the ongoing skills crisis, and SMEs may have to continue to rely on their own staff as they lack the funds to attract already skilled AI specialists.

The pilot programme aims to test whether training SMEs in AI will maximise the value of AI adoption. More specifically, it will see whether government support in the form of match-funding is an effective way of increasing employer-led upskilling in AI, and whether increased skills translated into AI adoption and firm-level productivity benefits.

Eligible businesses must have less than 250 employees, and have been operating in the UK for at least one year. They must also be able to match-fund 50% of the cost of training and operate in the professional and business services sector.

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Those seeking more information on what type of AI upskilling training they may require, business leaders can visit the Turing website to determine their upskilling needs.

“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 to boost their productivity while cutting business costs,” technology secretary Michelle Donelan said.

“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.”