Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the 85 per cent increase in AI companies in the UK between 2023 and 2025; and what steps they are taking to support sustainable and regionally balanced growth in the AI sector.

AI is a central focus of the Government’s economic and innovation priorities.

Due to data lags, 2025 AI Sector size is not currently available but will be released later this year in the 2025 AI Sector Study. Our most recent analysis highlights that between 2022 and 2024, the number of AI firms operating in the UK increased from 3,170 to 5,863, an 85% rise. This reflects both the strength of the UK’s AI investment environment, which is the highest in Europe, and ongoing work across Government to support safe and effective AI adoption.

Key policies continuing to drive this growth include the launch of the AI Opportunities Action Plan — with 38 of its 50 recommendations already in progress. This includes the development of five AI Growth Zones across England, Scotland and Wales, and initiatives such as the AI Skills Hub and support for employers to upskill 10 million workers so they can thrive in an AI‑enabled economy, as well as the Barnsley Tech Town programme.