Quick Take
- AI company registrations jumped 1,227% since 2020, with 5,800 firms now operating nationwide
- Sector revenue reached £23.9 billion, growing 150 times faster than the broader UK economy
- Record £2.9 billion investment flowed to AI firms in 2024, averaging £5.9 million per deal
- Employment surged by one-third to over 86,000 people across AI companies
- London leads with 1,689 AI firms, but Manchester, Leeds see triple-digit growth
Britain’s artificial intelligence sector is experiencing explosive growth that’s transforming the entire technology landscape, according to new data from specialist insurer Hiscox.
Company registrations featuring ‘AI’ in their name have skyrocketed since 2020, creating a boom that shows no signs of slowing. The numbers tell a remarkable story of innovation and investment flowing into one of the UK’s most dynamic sectors.
This unprecedented expansion reflects growing confidence in AI technologies and their commercial potential. The sector’s rapid growth rate – 150 times faster than the broader UK economy – highlights how artificial intelligence has moved from experimental technology to mainstream business driver.
The investment surge has been equally dramatic. With £2.9 billion flowing into AI companies in 2024 alone, deals are averaging £5.9 million each. This represents not just quantity but quality – investors are backing substantial, well-funded ventures rather than small experimental projects.
Employment growth tells another compelling part of the story. Adding over 86,000 jobs across AI companies represents a one-third increase in workforce. These aren’t just any jobs – they’re typically high-skilled, well-paid positions that contribute significantly to economic growth.
While London maintains its position as the AI capital with 1,689 firms, the growth isn’t confined to the capital. Manchester and Leeds are experiencing triple-digit expansion rates, showing how AI innovation is spreading across the country.
The 5,800 AI companies now operating nationwide represent a fundamental shift in how business operates. From startups developing cutting-edge algorithms to established firms integrating AI into existing operations, this sector is reshaping multiple industries simultaneously.
This surge comes at a crucial time for the UK economy. As traditional sectors face various challenges, AI represents a bright spot of growth, innovation, and job creation that could help drive future prosperity.
