What does the UK’s AI sector look like?

The Department of Science, Innovation and Technology has published its latest report on the UK's AI sector, covering 2024, building upon similar reviews for 2023 and 2022, and upon the UK's AI Action Plan. 

As the Parliamentary Under-Secretary of State for AI and Digital Government states in the report's foreword:

This 2024 AI Sector Study provides a comprehensive analysis of the UK’s AI landscape and will be critical to monitoring the implementation of the Action Plan. It also provides valuable insights into the opportunities and challenges ahead. The data and analysis contained within this report will continue to inform our evidence-based approach to AI policy development, allowing us to work to expand the UK’s AI sector, as well as realise the potential gains of widespread AI adoption for all.

Key findings include:

• year-on-year growth across employment, revenue and firms:

• that the UK has a strong AI ecosystem, particularly at the early stages of company formation where research funding and early-stage capital is required.
• apparent broad recognition of AI-related business opportunities across the economy, and particularly within diversified companies.
• investments into AI companies have increased, and outside of Information Technology the ‘most substantive levels of investment have gone into dedicated companies involved in life sciences and biotech, automotive and transportation, financial services, and healthcare and wellness’.
• there is increasing geographic spread of AI companies, although still with most in London, the South East and East of England.
• for growth enablers and barriers, access to finance, talent and computing remained front of mind.
• companies were concerned with reliance on foreign technologies and providers, but were also sceptical about the UK's ability to develop sovereign capabilities.

If you would like to discuss how current or future regulations impact what you do with AI, please contact  Brian Wong, Tom Whittaker, Lucy Pegler, Martin Cook, Liz Smith or any other member in our Technology team.  For the latest on AI law and regulation, see our blog and newsletter.

Artificial Intelligence (AI) is transforming economies, industries, and daily life at an unprecedented pace. The UK has long been a global leader in AI research, development, and adoption, and we remain committed to harnessing its potential to drive innovation, productivity, and economic growth. Feryal Clark MP Parliamentary Under-Secretary of State for AI and Digital Government