UK’s AI sector has grown by 600% in the past decade

The number of artificial intelligence (AI) companies in the UK has rocketed by 600 per cent over in past 10 years, fuelling its progress towards becoming a global AI superpower, research has found.

Cambridge-based Darktrace, Bristol’s Graphcore and Nanopore, which is headquartered in Oxford, are among the 1,300 AI companies now based in the UK, compared to just 180 in 2011, according to data from Government-backed start-up network Tech Nation.

The UK’s AI sector is among the most highly regarded in the world, with a value of  $46.3bn (£32.6bn), up from $1.6bn in 2011, and venture capital (VC) investment rising from $120m in 2010 to $3.4bn last year – more than any other country.

Darktrace, which has developed world-standard cyber security systems to protect companies from sophisticated cyber attacks, was valued at £2.2bn following its initial public offering on the London Stock Exchange in April.

Graphcore has developed a new processor called the Graphcore IPU (Intelligence Processing Unit), which it is confident will become the worldwide standard for machine intelligence for use in everything from self-driving cars to robotics.

Researchers recently used Nanopore’s DNA sequencing technology to describe the first complete human genome in May, a 20-year old project that has made significant progress in the past few years thanks to tech such as Nanopore’s, which can read long sequences of DNA uninterrupted.

“These fantastic figures show the UK is rapidly becoming an AI superpower, with government support playing a critical role,” said  Secretary of State for Digital, Culture, Media and Sport, Oliver Dowden.

He said: “We have committed £1bn through our AI Sector Deal to drive even more growth, create new jobs and use the power of tech to tackle some of the world’s biggest challenges.”

The number of AI companies being founded fell by 50 per cent between 2019 and 2020, falling from 133 new enterprises in 2019 to 67 in 2020, the report found.

“The UK is a central hub for transformative AI technologies, and the staggering growth we are seeing in the sector is encouraging and exciting,” Gerard Grech, chief executive of Tech Nation, said.

“Last year alone, UK AI saw a 17 per cent increase in venture capital investment, more than any other country. At this pivotal time, we must work to support and accelerate these businesses as they continue to shape our future; from transforming financial processes to tackling climate change and revolutionising modern healthcare.