The government has provided £5m in funding to feasibility studies for 100 artificial intelligence (AI) projects involving small businesses.
Ideas include using AI tools to manage the power supplies to EV chargepoints, reducing delays on the railways, cutting waste produced by the construction industry, and monitoring the health of dairy cattle.
Kapdaa, was of the businesses awarded funding, is developing AI-powered cloth recycling to reduce the fashion industry's environmental footprint and cut back on the estimated 921,000 tonnes of used textiles disposed of in household waste in the UK each year.
Its technology is used to sort and process textile waste by material, while removing zips and buttons to increase recycling and reduce landfills.
Nishant Parekh, co-founder of Kapdaa, said:
"Our aim is to make the UK self-sufficient for its own textile waste. We are creating a one of a kind AI system completely conceptualised and built in the UK, providing a unique way to reduce landfill.
"Eventually, it will create an entirely new sector and inspire young generations to support sustainability."
The awarding of the £5m comes as the government launches another £32m for research teams and businesses of all sizes working on using AI and machine learning (ML) to improve productivity in transport, construction, agriculture and creative industries.
Around 80 businesses and 20 consortia will be funded. Individual businesses can apply for a grant of up to £100,000, while consortia involving at least three organisations can apply for between £700,000 and £1.2m.