Challenges

The UK’s AI sector is experiencing explosive growth, outpacing the broader economy significantly since 2022. Revenues reached £23.9 billion fueled by over 5,800 AI companies, a 58% increase since 2023, largely driven by SMEs. This growth has attracted substantial investment (£15 billion) and boosted employment. While London dominates, AI activity is spreading regionally. Key challenges include securing late-stage funding, addressing the talent gap and establishing clear regulations to maintain global competitiveness in this rapidly evolving field.