New data reveals the huge growth achieved in the UK’s AI sector over the past ten years. The UK is now home to over 1,300 AI companies, up from only 180 companies in 2011, representing a 600% increase. AI companies are scaling across all regions of the UK, with 50% of the UK’s top 10 scaling AI companies outside of London. The UK’s major AI hubs include Cambridge and Edinburgh.
Most recently Cambridge-based Darktrace completed its IPO in Spring 2021, setting a strong precedent for up-and coming AI companies. The company uses machine learning and AI to protect clients from cyberattacks, with shares soaring by 32% on the first day of trading.
Not only are the UK’s scaling AI companies driving growth across the UK economy, with prevalence in fintech (10%), cyber (5%) and healthtech (4.5%), the AI sector is also an important engine of growth, with a collective valuation of $46.3bn (up from $1.6bn in 2011), turnover of almost $2bn, and employing almost 30,000 people across all regions of the UK. Furthermore, VC investment into UK AI companies has rocketed from $120mn in 2010 to $3.4bn in 2020.
AI technology is also key to building the foundations for the future growth of the UK economy, for instance, Bristol-based Graphcore are building next-generation AI chips, while OBS Medical are developing predictive algorithms to transform healthcare.
However, between 2019 and 2020, there was a 50% decrease in the number of AI companies being founded, with just 67 companies founded in 2020, compared to 133 in 2019. These figures highlight the need to continue to support the UK’s AI sector in an increasingly competitive global landscape, and to build the key enablers of growth, such as R&D capabilities, and links between industry and academic institutions.
Today, Tech Nation will be hosting an event in collaboration with the Office for AI and the AI Council, featuring key government and AI industry stakeholders, which will explore how the UK is scaling up and levelling up the AI ecosystem as the Government develops its National AI Strategy, releases its 2021 AI Roadmap and prepares for a future built on deep tech.
The UK is home to over 1,300 AI companies with a collective turnover of almost $2bn, representing a 600% increase in the number of firms over 10 years
The UK’s AI sector currently has a collective valuation of $46.3bn (a 29x increase from its $1.6bn valuation in 2011)
Four UK AI companies have IPO’d since 2015 (Darktrace, Mirriad, Crossword Cybersecurity and Diaceutics), setting a strong precedent for up-and-coming AI companies
Oxford Nanopore ($3.7bn), Graphcore ($3.05bn), and Darktrace ($2.4bn) are the three most valuable AI companies in the UK
The major hubs of AI companies can be found in London, Cambridge and Edinburgh
Between 2019 and 2020, there was a 50% decrease in the number of UK AI companies founded, with just 67 companies founded in 2020, compared to 133 in 2019, demonstrating a need to continue to support the UK’s AI sector in an increasingly competitive global landscape.