The UK Government has unveiled a package of AI investments ahead of the Budget, aimed at supporting domestic AI companies and expanding AI skills across the country.

Chancellor John Healey's package spans AI research, cyber security and infrastructure, alongside measures designed to help businesses adopt AI and improve public services.

The plans include £10m a year to support research into how AI will reshape jobs and industries, helping policymakers understand the technology's impact on employment and economic growth.

The government will also increase support for UK AI businesses. An additional £60m will be allocated to the Sovereign AI Fund to invest in companies developing robotics, autonomous systems and industrial AI applications. A further £60m will expand the Sovereign AI R&D Procurement Scheme, supporting AI projects in healthcare, security and responsible AI adoption.

The package includes measures to encourage wider AI adoption across the UK. A new £15m AI Challenge Prize will be launched, with the first competition focused on healthcare applications.

The government will also provide £23m over the next three years for the AI Economics Institute, which studies AI's impact on productivity, employment and economic growth. The institute will support international research efforts during the UK's G20 presidency next year.

Manchester will host a new National Cyber Security Centre AI Cyber Security Centre of Excellence, which will train government cyber security and AI specialists.

Local authorities will receive £30m to establish AI partnerships bringing together councils, businesses, universities and colleges to support AI adoption, improve public services and develop local skills.

Chancellor John Healey said: "AI will transform daily life: every firm, community, hospital, school and every aspect of our economy can benefit.

"I understand and share the concerns of working people, so I am setting out a distinctively British approach to AI, one that doesn't leave workers behind and defends our national interest, while ensuring the benefits of AI-enabled growth are felt right across the country."

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