Flexible AI Upskilling Fund is launched

More than £6m AI upskilling fund has been launched to help SMEs in law, design, HR and beyond to reap the benefits of new tech.

The UK Government has announced the launch of the Flexible AI Upskilling Fund, a £6.4 million initiative aimed at helping small and medium-sized enterprises (SMEs) train their workforce to utilise artificial intelligence (AI) and boost productivity and efficiency. Starting from 1 May, SMEs can bid for a share of the fund, with the government making up to £10,000 available for each business to embrace cutting-edge and efficiency-boosting new technology.

New Fund will cover 50% of the cost of investment in AI skills training.

Expected to support around 2,000 SMEs across the country, businesses employing under 250 staff can now apply for the support, which will see successful applicants reimbursed for up to 50% of the cost of investment in AI skills training.

Sectors set to benefit from this initiative include law, accountancy, scientific research, and human resources. By adopting AI technologies, SMEs across the country will be able to streamline tasks, boost productivity, and drive growth. For instance, accountants can use generative AI tools like ChatGPT to draft documents and develop new software to tackle fraud, while legal professionals can harness the power of AI to analyse lengthy documents such as contracts and provide concise summaries, freeing up time to focus on other critical areas.

The Flexible AI Upskilling Fund is expected to support around 2,000 SMEs across the country.

The Flexible AI Upskilling Fund is expected to support around 2,000 SMEs across the country. Businesses employing under 250 staff can now apply for the support, which will see successful applicants reimbursed for up to 50% of the cost of investment in AI skills training. This move aims to future-proof these businesses and incentivize investment in AI skills, ensuring they retain a competitive edge through increased productivity and reduced costs as they begin to integrate AI into their operations while building a pool of technological talent and supporting employee growth and development.

While human supervision, judgment, creativity, and empathy remain vital requirements in the workplace, augmenting AI into monotonous tasks like inputting data and filling out paperwork can increase speed and efficiency and play a major part in increasing business productivity.

The pilot launched today will support SMEs in the Professional and Business Services (PBS) sector

The pilot launched today will support SMEs in the Professional and Business Services (PBS) sector, with SMEs encouraged to apply between now and 31 May for grant funding to deliver training before March 2025. Businesses specialising in professional services such as law, accounting, and market research, alongside those providing business services such as HR, administration, and leasing consumer goods, are already seeing some of the benefits AI can bring to their day-to-day operations.

To further support businesses in identifying the skills and knowledge their employees might need to use AI in the workplace and make the most of emerging technologies, the Department for Science, Innovation and Technology, Innovate UK, and The Alan Turing Institute have developed the AI Skills for Business Framework. This new framework will help businesses grip the huge opportunities AI has to offer, driving innovation and future-proofing their workforce.

Technology Secretary Michelle Donelan said:

“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 boost their productivity while cutting business costs.

“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.”