Artificial Intelligence: New Businesses

(asked on 12th November 2025) - View Source

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to support the development of UK-based autonomous and agentic artificial intelligence start-ups, particularly in regard to partnerships and infrastructure.


Answered by
 Portrait
Baroness Lloyd of Effra
Baroness in Waiting (HM Household) (Whip)
This question was answered on 26th November 2025

The Government is backing UK-based AI start-ups through targeted investment and strategic partnerships via several initiatives.

In partnership with DSIT, Innovate UK is launching a £1 million Prize Fund. This initiative aims to accelerate Agentic AI adoption for design across Advanced Manufacturing, Health and Life Sciences, and the Creative Industries.

Alongside this, the Sovereign AI Unit was announced in the AI Opportunities Action Plan as a new initiative specifically designed to build homegrown capability in emerging areas of the AI ecosystem. Backed by £500 million at the Spending Review, the programme is focused on unlocking opportunities where targeted public intervention can support UK leadership, scale national champions, and secure long-term strategic advantage.

The government has also committed over £1 billion to expand the capacity of the AI Research Resource (AIRR) at least twentyfold by 2030. AIRR is now live and is free to use for academics, public sector organisations, and SMEs. By taking these measures, we are ensuring the UK remains a top destination for leading AI innovation, fostering resilience and long-term prosperity.

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