UK government allocates £7 million for AI projects to boost small businesses
The UK Government's £7 million initiative aims to enhance productivity in small businesses through innovative AI projects, despite previous controversial funding cancellations.
The UK Government has announced an initiative to allocate £7 million for artificial intelligence (AI) projects, part of its broader AI Opportunities Plan aimed at enhancing productivity and efficiency for small businesses across the country. This funding will be distributed among 120 selected projects, enabling them to innovate and experiment with technology designed to improve operations and reduce waste.
Among the examples cited is a proposed algorithm for bakeries that can predict sales and provide insights on production requirements. This is intended to assist businesses in minimising food waste, although some industry observers question the necessity of such technology for establishments that traditionally rely on historical sales data.
This initiative arrives in the context of the government’s commitment to foster an environment conducive to growth within the AI sector, with an aspiration to position Britain as the leading destination for AI enterprises in Europe. In remarks about the funding, Science and Technology Secretary Peter Kyle emphasized the diversity of funded projects, from agriculture to infrastructure, indicating that the applications of AI are extensive and hold significant promise for various sectors.
Kyle stated, "The huge range of projects receiving funding today, from farmers and bakers to those tackling potholes on our roads and mould in residential properties, demonstrates the truly limitless benefits of AI that are there for the taking." He further reinforced the government's intent to leverage AI for national renewal through the recently published 50-point AI Opportunities Plan.
The initiative comes on the heels of a controversial cancellation of a £1.3 billion AI investment plan that had included significant proposals such as an £800 million Exascale supercomputer. Consequently, the newly announced £7 million funding may be seen as modest in comparison; however, the government is optimistic about its potential to drive transformative changes for small businesses.
Additionally, the AI Opportunities Plan includes ambitious projects such as tools for predicting infrastructure failures like potholes before they fully develop, which may save on repair costs. Also highlighted is an AI model aimed at increasing dairy yield for farmers. While the effectiveness and feasibility of these initiatives are yet to be determined, the government's overarching goal remains clear—to harness AI's transformative power for a competitive advantage in the global market.