AI startups account for nearly a quarter (22%) of UK tech investment as of the first half of the year, up from 12% in 2019.
In the first half of 2024, UK AI startups raised $2.1bn (£1.6bn), putting the sector on track for a record-breaking year, according to new data from HSBC Innovation Banking and Dealroom.
AI firms in Britain have been projected to raise $4.4bn by the end of the year.
Among the largest funding rounds for UK AI companies so far this year are autonomous driving software firm Wayve’s $1.05bn round and AI call centre startup PolyAI’s $50m round.
“This data shows that positive trends for investment into the UK innovation ecosystem are manifesting and signs of early optimism are coming to fruition –particularly in the area of AI,” said Simon Bumfrey, head of technology and life sciences at HSBC Innovation Banking UK.
“We are hoping to see further large investments into UK AI and other areas, both from foreign and domestic investors as the year progresses.”
Commenting on the figures, Peter Kyle, the new technology secretary, said: “While startups like Wayve and Monzo have secured growing levels of investment despite persistent uncertainty and stalling growth, there is work to do to create a better environment for our tech sector.”
Kyle pointed to the Financial Conduct Authority’s recent rule overhaul aimed at making it easier for companies to list in London.
“This government is committed to use every available lever to make sure the sector reaches its full potential,” added Kyle. “That means removing unnecessary regulatory barriers and accelerating innovation to share the benefits of technology more widely and restart the engine of our economy.”
It follows a separate report, published by Tech Nation last month, which valued the UK AI sector at £72.3bn – the largest in Europe.
“We’re excited about UK innovation and its pivotal role within the UK economy and remain committed to supporting and partnering with innovators, investors and the broader ecosystem to drive further growth,” added Bumfrey.
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