UK government claims AI sector is attracting "millions per hour" in investment push

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Government says UK AI sector has entered a ‘new chapter’

A person holding out their hand with a digital AI symbol.
(Image credit: Shutterstock / LookerStudio)
  • UK AI sector is attracting roughly £200m in private investment per day
  • News follows recent launch of UK's Government AI Action Plan
  • Plan aims to make the UK a world leader in AI

Since the Labour Government took office in July 2024, the UK’s AI sector has attracted an average of £200 million per day in private sector funding, equating to roughly £8.3 million per hour, a new report from the Department for Science, Innovation & Technology has claimed.

The news seems to support the British Government's recent launch of a master plan to ‘unleash AI’ and develop capabilities by ‘unlocking’ public data to train AI models, including designating ‘AI Growth Zones’ to speed up AI infrastructure and data center construction.

Since then, over £14 billion worth of investment and thousands of jobs have been confirmed, the report states.

Britain's ‘new blueprint’

“By attracting more than £14 billion in new investment and thousands of fresh jobs since unveiling our new blueprint from companies across the globe, the message is clear – the UK’s pull as a magnet for AI innovation and growth will only go from strength to strength," noted Secretary of State for Science, Technology, and Innovation, Peter Kyle.

The report comes not long after the UK Government announced an investment worth £25 billion into British data centre infrastructure earlier in 2025, which brings the total to £39 billion in six months. This is despite the predicted strain this will put on the National Grid, and the six-fold increase in demand this will likely cause.

The aim of the project is to make the UK a hub for AI innovation, and create jobs and growth through the implementation of AI algorithms in private industries. Alongside this, the UK Government is funding 120 projects which will trial AI to boost productivity and efficiency.

Examples of this include bakeries which can use an algorithm to predict how much product will be needed, and tools for predicting where potholes will form so that they can be fixed quicker.

The investment comes with some warnings from experts, who point out the excessive energy and water usage from data centers, and dangers of cybersecurity threats.

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Ellen Jennings-Trace
Ellen Jennings-Trace
Staff Writer

Ellen has been writing for almost four years, with a focus on post-COVID policy whilst studying for BA Politics and International Relations at the University of Cardiff, followed by an MA in Political Communication. Before joining TechRadar Pro as a Junior Writer, she worked for Future Publishing’s MVC content team, working with merchants and retailers to upload content.

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