New £7.4 Million Pilot Scheme Launched to Improve AI Skills in SMEs
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28 June 2024
Aaliyah Pollock - AI, Data and Tech Analyst, RICS
A £7.4 million pilot scheme has been launched by the Department for Science, Innovation and Technology (DSIT) with the goal of improving AI capabilities within small and medium-sized businesses (SMEs) in the Professional Business Services (PBS) industry. This project is expected to empower workers with critical AI abilities and drive a new generation of technical competency in the UK workforce by paying up to half of the training costs.
AI's Economic Potential
It is evident that AI hold huge potential to boost the UK economy, in fact it could boost GDP by as much as 10.3% by 2030, adding a staggering £232 billion. Companies that embrace AI are destined to thrive, gaining a competitive edge over those that lag behind. With AI growing at a rapid pace, 90% of UK workers expect to use AI technologies in their daily work by 2028 which highlights urgency of developing AI skills now. The DSIT’s Flexible AI Upskilling Fund aims to bridge the skills gap, specifically targeting SMEs in the PBS sector. With £6.4 million earmarked for grant funding, eligible businesses can now apply for assistance to cover up to 50% of their AI training expenses. Originally opening for applications on 1 May 2024, the scheme has extended its application window until 18 August 2024.
Addressing the AI Skills Gap
Addressing the acute shortage of AI skills in UK businesses, particularly among smaller firms, is one of the main goals of this pilot. By encouraging employer investment in AI training, the fund seeks to measure the impact of upskilling on business productivity and outcomes, while tackling the existing skills gap.
Funding Details
Funding amounts vary by business size:
- Micro businesses with fewer than 10 employees and a turnover under €2 million can apply for £2,500.
- Small businesses with fewer than 50 employees and a turnover under €10 million are eligible for £5,000.
- Medium-sized enterprises with up to 250 employees and a turnover under €50 million can request up to £10,000.
To qualify, applications must show how the proposed AI training will enhance business productivity, adhere to core AI skill sets, commence after the signing of the Grant Funding Agreement (expected in July 2024), and be completed by 31 March 2025. Additionally, training must be provided by eligible providers, not already subsidised by the government, and cannot be conducted in-house.
Eligibility Criteria
To be eligible, businesses must be registered and operating in the UK, have existed for at least one year, employ between 1 and 249 people, and belong to the Professional and Business Services sector as defined by specific SIC codes. The application process involves submitting basic information, confirming eligibility, demonstrating training eligibility, and outlining how the training proposal aligns with the scheme’s objectives. Proposals are assessed and scored, with a minimum threshold required for funding approval. Successful applicants will be notified in September 2024 and must sign the Grant Funding Agreement to secure the funds.
Tackling AI Skill Shortages
The lack of AI skills has been a significant barrier to AI adoption among UK businesses, particularly due to limited investment in upskilling. By incentivizing employer-led training initiatives, the Flexible AI Upskilling Fund aims to increase AI adoption and productivity across the sector.
Timeline
The timeline for the pilot is as follows: applications opened on 1 May 2024 and will close on 18 August 2024. Assessments will take place in August and September, with award letters issued shortly thereafter. Training is scheduled to occur between September 2024 and February 2025, with payment requests due by February 2025, and all training must be completed by 31 March 2025.
This pilot scheme represents a critical investment in the future of AI within UK businesses. Through employer-led training programmes and tackling the skills gap in AI, the scheme seeks to improve productivity and competitiveness among SMEs operating in the PBS sector. Initiatives like this make sure that UK firms are not just ready for the future, but also positioned to thrive as AI continues to change both industries and the workforce. For further details and to apply click here.
