UK AI sector most valuable in Europe, new report reveals

The UK’s artificial intelligence (AI) sector has been valued at £72bn, making it the number one in Europe, according to a new report. 

The UK Tech in the Age of AI report by Tech Nation means the UK now has an opportunity “to lead the responsible development of AI on a global scale,” Carolyn Dawson chief executive of Founders Forum Group said.  

Currently, it ranks fourth globally, only behind the US, China, and Israel.  

Dawson added: “We are witnessing another landmark achievement for UK tech and another milestone in our remarkable growth story.” 

Data showed that 16 per cent of the UK’s total venture capital (VC) investment during the first quarter (Q1) of 2024 went to AI startups, suggesting a growing appetite for the industry. 

The UK is home to 1,800 VC-backed AI startups and 20 AI unicorns, according to the report. 

Findings also suggested Scotland has become an AI innovation hotspot, with almost 19 per cent of all tech investment during 2023 injected into innovative technology. 

Edinburgh was also listed as one of the biggest AI clusters in the UK, ranking only behind London, Oxford and Cambridge. 

Meanwhile, figures suggested AI scepticism might be shrinking with almost seven in 10 UK tech professionals believing it will have a transformative impact on the UK economy. 

The same survey also revealed more than 70 per cent of professionals believed AI is having a positive impact on the industry, and one in two are using it to enhance their existing product offerings. 

In the wider tech sector, UK-headquartered funds investing in tech startups raised $50.2bn in Q1 2024 - a quarterly record high.