AI fuels growth of £1.36trn, 500,000-strong UK sector

Artificial intelligence tools have not only taken the UK by storm since the launch of ChatGPT late last year, it has also triggered the rapid growth of an industry which is now valued at £1.36trillion ($1.7trn), and projected to reach £2.4trn ($3trn) by 2027.

That is according to new findings released as part of UK AI Ecosystem, claimed to be a first-of-its-kind open-source AI knowledge platform launched today, putting the UK in third place in the global AI race.

Developed by Global AI Ecosystem with the support of AI Industry Analytics (AiiA) and Deep Knowledge Group, the platform is designed as a universally accessible environment for community interaction, collaboration, content and knowledge sharing across the UK AI ecosystem.

According to new research conducted by AiiA as part of its Global AI Economy Size Assessment report, the UK’s AI industry is in a state of rapid expansion, with over 8,900 companies operating in the sector.

The UK AI economy’s valuation of £1.36trn underscores its substantial contribution to the national GDP, with around 4,100 investment funds focused on AI (600 of them based in the UK) fuelling financial confidence in the field, the report claims.

The presence of 500,000 UK-based AI specialists also indicates a robust workforce driving innovation, showcasing the UK’s ability to develop, retain and attract a massive cohort of AI talent. This large AI labour force serves not only to boost GDP, but also act as a strong safety net against rising unemployment, AiiA insists.

In addition, the Government is actively prioritising its national AI agenda, with 280 ongoing projects leveraging AI technology. This should come as no surprise, with the UK having named AI as one of the major pillars of its national industrial strategy, pursuing this agenda on many levels, ultimately giving the UK one of the most proactive national AI strategy in the world.

However, not everyone is content with the Government’s “soft-touch” regulation plans.

Even so, major cities like London, Cambridge, Manchester, and Edinburgh have emerged as leading AI hubs, thanks to their ecosystems that foster collaboration and offer access to a plethora of required resources.

London has been recognised for some time by some as the AI capital of Europe, but now with nearly 5,000 AI companies in the city alone, it can compete with many other entire countries active on the global AI stage.

AiiA founder and Deep Knowledge Group general partner Dmitry Kaminskiy said: “Despite an economic downturn and other challenges, the UK stands as an undoubtable, dynamic and proactive leader in the global AI arena.

“There is no question that AI is poised to be the major driver for economic growth, fuelling the further development of the entire UK DeepTech industry, and creating cumulative, systemic, positive impact on the full scope of the nation’s integral infrastructure.”