The UK government will invest £100 million in the Sovereign AI R&D Procurement Scheme to support British startups developing artificial intelligence for public sector projects. Announced by Chancellor John Healey, the initiative aims to level the playing field for smaller firms by offering upfront payments and removing barriers to government contracts.
The scheme includes four competitions: one focused on automating NHS workflows under the 10-year health plan, another to expand public AI computing capacity, a defence challenge for secure data connectivity, and a cybersecurity track for managing risks in advanced AI systems. Successful companies will retain ownership of their AI models for further commercial development.
Speaking at the G20 in North Carolina, Healey framed the program as a first-of-its-kind effort to ensure AI benefits are distributed across the UK. AI minister Kanishka Narayan emphasized the scheme’s role in unlocking opportunities for British innovators to grow domestically and compete globally.
