London, UK — September 5, 2025 — The UK’s artificial intelligence (AI) industry has reached a new milestone, securing a record £2.9 billion in investment during 2024, according to the UK government’s latest Artificial Intelligence Sector Study 2024. The figure surpasses the previous high set in 2022, signalling renewed investor confidence and accelerating growth across the sector.
Sector Growth at a Glance
The study reveals a year of remarkable expansion for the UK’s AI ecosystem:
- Revenue soared by 68% to £23.9 billion in 2024 — up nearly £10 billion from the previous year.
- The number of AI companies jumped to more than 5,800, representing an 85% rise since 2022.
- Employment in AI surged by 34%, with over 86,000 roles across the sector, adding more than 21,000 new jobs in just a year.
- Gross Value Added (GVA) for dedicated AI firms nearly doubled, from £1.2 billion in 2023 to £2.2 billion in 2024.
Investment Trends
While the overall number of deals fell slightly — from 512 in 2022 to 496 in 2024 — the average deal size grew significantly, rising from £4.6 million to £5.9 million.
Key investment areas included:
- Life sciences & biotech
- Automotive & transportation
- Financial services
- Healthcare & wellness
Top-funded UK AI companies in 2024 included Wayve, Synthesia, ElevenLabs, and Stability AI, backed by global investors such as Microsoft, Nvidia, SoftBank, and local venture leaders like MMC Ventures.
In addition, the UK attracted 51 AI-related inward investment projects, worth more than £15 billion and expected to create 6,500 new jobs.
Why It Matters
The surge in investment and rapid industry expansion positions the UK as one of the world’s leading AI hubs. However, challenges remain. Despite the record funding, the report highlights that access to scale-up and late-stage capital continues to be a barrier for many UK-based AI firms looking to expand globally.
The Bigger Picture
AI is fast becoming a cornerstone of the UK economy, influencing industries ranging from healthcare to finance and transportation. With government backing, international investment, and a swelling workforce, the sector’s momentum suggests the UK could strengthen its role as a global leader in artificial intelligence — provided it can sustain funding flows and infrastructure to match demand.
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