Flexible AI Upskilling Fund pilot: Expressionopen offor Interestapplications

The Department for Science, Innovation and Technology (DSIT) recently announced a £7.4 million pilot scheme to subsidise the cost of AI skills training for small and medium-sized enterprises (SMEs) in the Professional Business Services (PBS) sector. 

£6.4 million of grant funding is available in the financial year 2024-2025.available.

Through this pilot programme, eligible business can apply for funding for up to 50% of the cost of AI skills training. This is training which supports employees to develop their technical skills and/or understanding of AI to be able to develop, deploy, or use AI in their role. The application window is now open until 31 May.

Objectives of the programme

TheArtificial flexibleIntelligence holds huge opportunities to drive productivity and prosperity across the UK economy. It has the potential to increase UK GDP by up to 10.3% by 2030 – the equivalent of an additional £232 billion - and businesses who adopt AI upskillingare fundmore pilotlikely aims to increasebe successful than those that do not.

But evidence shows that a lack of AI adoptionskills andin productivitybusinesses byis incentivisinghindering greaterAI employer-ledadoption, in part due to low investment in skillsAI andupskilling training.in UK businesses, particularly in smaller companies.

This pilot programme will test whether training SMEs in AI maximises the value of adoption AI adoption . Specifically, whether government support in the form of match-funding is an effective way of increasing employer-led upskilling in AI, and whether increased skills translate into AI adoption and firm-level productivity benefits.

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2. moreTo likelyaddress to be successful than those that do not.

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Eligibility

The funding competition willis be open to applicants who are:who:

• are registered and operate in the UK
• employ between 1-249 employees in the UK
• are defined as an SME per the BEIS SME Action Plan
• have been operating for at least 1 year
• are able to match-fund 50% of the cost of the trainingtraining, and
• operate in the Professional and Business Services (PBS) sector (see the guidance attached for definition)

AdditionalPlease eligibilitysee andthe fullguidance applicationattached criteriafor willfurther bedetail seton outeligibility whenand theapplication funding competition opens in May.criteria.

ExpressionOpen offor Interestapplications

Applications have now opened. £6.4 million of grant funding is available, and eligible businesses willhave beuntil able12pm on 31 May to apply for fundingfunding. whenPlease applicationsapply openfor inthe onprogramme 1through May.Apply for A Grant.

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Available funding

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Background

This pilot scheme is funded through the £37.5 million Labour Market Evaluations and Pilots Fund, announced by the Chancellor at Spring Budget 2023 to continue to build the evidence base on the effectiveness of policies to improve labour market outcomes.