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November 2024
The West Midlands is well known as a hub for automotive and engineering, with the likes of Jaguar Land Rover and JCB being based there.
Because of this historical strength, it is home to an abundance of technical talent. The automotive industry is increasingly relying on AI and machine learning expertise and therefore, the existing West Midlands firms in this space will be looking to expand their workforces to include roles focused on this technology.
Furthermore, a major factor in the availability of engineering talent is the wealth of higher education institutions in the region. The University of Birmingham, the University of Warwick, Coventry University and Aston University to name a few are major draws for budding talent in this space.
Bharat Bhushan,
Partner and CTO, KPMG in the UK
We are well-positioned across the region to lead in AI both now and in the future. The West Midlands is home to some of the top universities and major industry hubs in manufacturing, banking, and beyond—sectors where AI will be key to driving growth and innovation. Region’s leadership will be evident in areas such as cutting-edge AI research specifically on AI governance, ethics, compute and power – enabling the industry leaders to adopt AI safely and responsibly.
As mentioned earlier, and in UKTN’s previous report on the wider tech industry of the West Midlands, access to funding remains a significant issue for local tech firms. Even with the surge in investor interest in AI bringing cash to startups across the country, the West Midlands has struggled to secure its share.
Research from the O3, a platform developed by the University of Oxford and the VC firm OpenOcean found that as of 2023, the West Midlands was behind not only London for AI funding, but also the South West, East of England and the South East.
Adoption of AI beyond the advanced automotive industry appears to, for now, also be a challenge. Recent research from Amazon Web Services estimated that just 35% of businesses in the West Midlands have adopted AI, suggesting the region has a ways to go before AI is considered a priority for the majority of its businesses.
AI founders in the West Midlands also expressed frustration to UKTN that many of the accelerator and support programmes that support growth on a global scale are limited to London.
Paul Warrington,
West Midlands Relationship Director, Lloyds
The AI sector in the West Midlands faces several challenges that could hinder its growth.
“There is a demand for highly skilled professionals in AI, data science, and machine learning, however, the region may struggle to attract and retain top talent due to competition from larger tech hubs such as London or Cambridge. Access to funding remains a challenge where startups and smaller companies often find it difficult to secure investment compared to those in more established tech areas where there is a more joined-up ecosystem.
Adopting AI in the region is a must for expanding the sector’s impact, and the West Midlands’ institutions seem to have recognised this.
As well as offering courses in AI, universities in the region are progressively exploring further opportunities to capitalise on the rapidly evolving technology.
For example, the University of Warwick recently entered into a partnership with British AI unicorn Wayve to launch a dedicated platform to share insights, tools and research focused on AI safety assurance and automated driving.
Coventry University in October announced a scheme in partnership with The Science and Technology Facilities Council’s (STFC) Hartree Centre to explore opportunities to deliver a national digital and AI skills network for the UK.
The region’s local governments have also expressed keen interest in adopting self-driving infrastructure, one of the key intersections of AI and the West Midlands’ speciality of automotive engineering.
In 2021, Solihull became one of the first places in Britain to deploy self-driving vehicles on its roads through a set of passenger trials led by the council.
More recently, the Solihull and Coventry Automated Links Evolution (SCALE) project launched a pilot scheme for an autonomous shuttle service linking up Birmingham International Railway Station, the National Exhibition Centre and Birmingham Business Park in October 2024.
Martin Sandhu,
CEO, nuom
To really push AI forward in the West Midlands, we need to see more targeted government support. We’re talking about things like expanding access to high-performance computing for businesses that are ready to scale their AI operations. More AI-specific incubators would also be a game-changer, providing start-ups with the resources and guidance they need to get off the ground.
The West Midlands has been at the forefront of something transformative. It has always been a region that thrives on innovation, from its industrial roots to its growth as a tech hub. At present, it is positioned to lead the charge in AI-driven HealthTech. What really sets the West Midlands apart is its diversity (Birmingham’s population is more than 51% non-white) which makes it home to one of the most varied cities in the UK and even the world. This region is uniquely equipped to develop healthtech solutions that truly reflect the needs of its people. With over 40 NHS Trusts, including heavyweights like University Hospitals Birmingham and Birmingham Women’s and Children’s NHS Foundation Trust, we’re already playing a pivotal role in the nation’s healthcare landscape.
What excites me most is how we’re harnessing these existing strengths. The same manufacturing giants that shaped the Midlands are now helping to forge a new era of healthcare solutions—solutions that won’t just improve processes but fundamentally change how we approach care. We’re not just talking about innovation for the sake of it; we’re building the future, right here.
The potential here is huge thanks to the much-anticipated launch of the Birmingham Health Innovation Campus, which offers the full circle of translational medicine, from drug development to real world studies, to promote healthy living through maintaining quality of life and developing new treatments for disease. In addition, initiatives like SPARK The Midlands provide a global preclinical accelerator programme to support academics, healthcare professionals and entrepreneurs in bringing their healthcare products to meet the demands of real unmet clinical needs.
Thanks to advocates like Emma Yeap, who is passionate about HealthTech, medtech, and life sciences, organisations such as West Midlands’ Health Technologies Cluster (WMHTC) are making a real difference in the region. With the use of AI, WMHTC brings together remarkable talents, cutting-edge infrastructure, and thriving communities that define the West Midlands. Their aim is to foster collaborations and forge strategic partnerships between academia, industry, and healthcare organisations.
Here we’re seeing a clear pathway for AI to thrive in HealthTech. It’s not just about innovation for the sake of it—it’s about creating meaningful solutions that improve lives. And this isn’t just about tech start-ups – AI is being integrated into the heart of the NHS here, making processes smoother and helping clinicians deliver care faster and more efficiently. These projects are laying the groundwork for start-ups and researchers to take their ideas from concept to clinical reality.
With investments from programmes like the Midlands Engine Investment Fund (which will deliver £400m of investment to growing companies), the region is becoming a hotbed for healthtech innovation. Greater Birmingham & Solihull LEP is another such example which helps companies grow by protecting and harnessing IP, improving innovation management and connecting to the innovation ecosystem globally. In addition to Sector Innovation Leads at Innovate UK, they have strong relationships with ecosystem players including Catapults, Laboratories, KTN, the investor community and universities. But as we look at these opportunities, there’s something crucial we need to remember—this isn’t just about technology. It’s about people.
AI is already showing what it can do to improve efficiency, especially in healthcare systems like the NHS. In the West Midlands, we’re seeing AI tools being implemented to streamline patient flow, automate scheduling, and reduce the strain on administrative staff. But here’s the thing— while this kind of efficiency is important, it’s equally vital to ensure that AI doesn’t distance us from the human side of healthcare.
Platforms like RapidAI are a great example here. It was introduced at the Queen Elizabeth Hospital Birmingham, with the aim of improving care for stroke patients across Birmingham and further afield. Interventional neuroradiology and stroke teams, with the support of Digital Transformation and Imaging IT departments, have launched RapidAI as part of the Trust’s strategy to improve patient care through the adoption of new, cutting-edge technology. This is the future of healthcare—blending the latest technology with human connection and treating individuals in a tailored and supportive way. It’s not about replacing doctors or nurses; it’s about giving them the tools to do what they do best— care for people.
As we move forward with these advancements, one question keeps coming up for me: How do we keep the human connection at the heart of what we do? For me, this has always been the priority. From the early days of working with the NHS, co-creating mental health platforms, I’ve seen first-hand how technology can either bring us closer or push us apart. It’s our responsibility to ensure that AI enhances the patient experience, not replaces it.
At nuom, our focus is on human-centered design (HCD). Every project we take on starts with the same question: How can we use technology to make life better for people? Whether it’s helping patients with rare diseases navigate clinical trials or empowering individuals to take control of their own health, our goal is always the same—putting people first. AI should simplify the healthcare journey, not make it more complicated.
We also rely heavily on service design principles. This means looking beyond just the technology and considering how it fits into the bigger picture. How does it affect the patient’s overall experience? Does it make their care more efficient without losing the human touch? By considering the whole ecosystem—patients, clinicians, and healthcare providers—we make sure that every touchpoint is meaningful.
The West Midlands’ journey in AI-driven HealthTech represents more than technological progress—it’s about creating a healthcare system that serves all communities while maintaining the human touch that makes healthcare meaningful. By preserving this balance, the region can set new standards for healthcare innovation that benefit both providers and patients.
Martin Sandhu,
CEO, nuom
