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Posted: Mon 9th Jun 2025
The government has announced a new £18 millon fund to help small businesses develop new technology products and adopt AI as part of a £187 million national digital skills programme.
The new 'TechFirst' initiative, support by firms and organisations including IBM, BAE Systems, QinetiQ, BT, Microsoft and the Careers & Enterprise Company, is aimed at training people of all ages and backgrounds for the tech careers of the future.
It involves four schemes with small businesses supported by £18 million TechLocal initiative. This will involve local panels of tech businesses assessing applications for funding, with final checks then carried out by Innovate UK.
The other schemes are:
TechYouth: A £24 million scheme which will train one million secondary school students over three years.
TechGrad: A £96.8 million scheme to support 1,000 "exceptional domestic students" a year with undergraduate scholarships in areas like AI, cyber security, and computer science.
TechExpert: A £48.4 million scheme which will give up to £10,000 in additional funding to 500 domestic PhD students conducting research in tech with the aim of accelerating cutting-edge innovation.
Alongside TechFirst, prime minister also announced a partnership between the government and large technology businesses to train 7.5 million UK workers in AI skills by 2030. This is equivalent to around 20% of the UK workforce.
Firms including Google, Microsoft, IBM, SAS, Accenture, Sage, Barclays, BT, Amazon, Intuit, and Salesforce have committed to making free training materials available to workers in businesses.
Training will focus on helpling workers to use and interact with AI systems such as chatbots and large language models with the aim of boosting productivity. Sector-specific training will also be developed in industries such as healthcare, finance and manufacturing.
Google recently carried out its AI Works skills pilot, supported by organisations included Enterprise Nation. Analysis of the programme found that when AI is adopted by workforces it has significant benefits, with workers who are using generative AI estimating that it is saving them around 122 hours a year.
Google says that growth driven by artificial intelligence could benefit the UK economy by £400 billion, but £200 billion of the gains depend on workers using AI productively.
Peter Kyle, science, innovation and technology secretary, said:
"We are getting Brits ready for jobs of the future by helping millions across the country gain vital digital skills in AI and beyond.
"Embedding these skills into our education system and local communities will help people of all backgrounds and ensure tech talent flourishes in every corner of our nation.
"These partnerships with industry will translate skills into real jobs and economic growth, putting more money in people's pockets and breaking down barriers to opportunity."
