According to recent statistics, British AI companies attracted record investment last year.

The figures show a total of £2.9 billion in private support and average deals worth £5.9 million.

British AI companies now contribute £11.8 billion to the UK economy – double the amount in 2023, its 86,000 people employed in AI.

A new AI Assurance Fund worth £11 million will also be launched, with applications due to open in the Spring. The fund will support the development of new and innovative AI assurance tools to future-proof the market and ensure the UK is ready to response to rapid developments in AI capabilities.

Technology secretary Peter Kyle said: "We have learned the lesson of history: countries can only prosper if they get the big calls right, if they decide to go beyond the expected and embrace the future, to innovate not imitate - refusing to be constrained by the problems of today by taking up the challenges of tomorrow.  In these uncertain times, I am certain that’s what it takes to get a global competitive edge.

"We want you to keep investing here, keep building here - list here, scale here. If you invest in Britain, you’ll share in that competitive edge."

Chancellor of the Exchequer Rachel Reeves said: "This government is slashing burdensome red tape and making the conditions for record investment in AI, so that once again the UK can lead the way.

"This country has huge potential, but our economy has been stuck on pause for too long. By giving companies the right environment to innovate, grow and create jobs we are changing that, delivering economic growth to put more money in working people’s pockets."