UK Research and Innovation outlines strategy for £1.6 billion in AI sector funding

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Public research funder UK Research and Innovation (UKRI) has published its first artificial intelligence (AI) strategy for providing £1.6 billion in funding to the AI sector by the end of the decade.

The finance was first announced in the government’s spending review last year. It is UKRI’s biggest single investment area for 2026 to 2030.

Under the new strategic framework, investment will focus on six priority areas:

  • advancing technology development
  • transforming research through AI
  • developing AI skills and talent
  • accelerating innovation for economic growth and societal benefit
  • championing responsible and trustworthy AI
  • building world-class AI data and infrastructure

With the aim of positioning the UK as “a global leader in explainable, human‑in‑the‑loop systems, agentic AI, edge computing and sustainable models” by 2031, the strategy will take action including funding early-stage AI SMEs and spin-outs through “to scale-up, to grow capability and attract further private and public investment in co-ordination with the British Business Bank”.

UKRI will invest in mathematics, computer science and engineering research which underpin AI expertise, with researchers and businesses getting access to the tools, training and infrastructure to unlock new growth driven by AI.

The strategy also commits to expanding doctoral and fellowship routes co-designed with businesses.

Deputy prime minister David Lammy said:

“The UK is backing its pioneering AI leadership with more than £1.6 billion in investment to make sure the best of British expertise develops the next wave of AI innovations. Together we are turning potential into progress.

“From spotting cancers earlier to cutting backlogs in public services, new research into AI will be a game-changer, bringing the promise of tomorrow’s technologies to the UK today.”

UK AI minister Kanishka Narayan added: 

“The potential of combining our AI expertise with our peerless R&D community is a game-changer. This plan will harness AI to accelerate both the pace and possibility of scientific endeavour.

“We are already seeing AI change the game for what’s possible in fields from health, to energy, and beyond. Boldly backing this technology is how we push our Great British innovators to further success, and build a path to breakthroughs that boost our health, wealth, and wellbeing.”