Key Features
UK registered businesses can apply for a share of up to £1.6 million for the development of Proof of Concept demonstrators of AI technologies with state of the art performance. This is to support the UK’s AI sovereignty objectives.
Programme: Innovate UK
Award: Share of up to £1.6 million
Opens: 11th Aug 2025
Closes: 10th Sep 2025
Innovate UK, part of UK Research and Innovation, will invest a minimum of £1.6 million. This funding is from Innovate UK, part of UK Research and Innovation and is subject to a sufficient number of high quality applications being received.
Innovate UK reserve the right to adjust funding allocations for any of our competitions under exceptional circumstances, for example, in response to changes in policy, portfolio funding considerations, or broader government funding decisions.
These projects will be to validate highly scalable proof of concept stage AI technologies that will support the UK’s AI sovereignty objectives. Your project can deliver and validate the performance of novel architectures or subsystem components, utilising computer simulation or synthetic data when full system capability cannot be achieved within the project delivery.
The aim of this competition is to demonstrate Proof of Concept of AI technologies with state of the art performance in areas of strategic importance to UK. This will ensure that frontier AI technologies are developed in the UK, safeguarding UK’s future economic growth and security and geostrategic influence.
Your technology must have in principle the ability to scale at pace, but you are not required to prove or validate scalability. We are expecting projects to deliver technologies at Technology Readiness Level (TRL) 3 to 5.
Your project must demonstrate the ability of your technology to work in principle. You can focus in demonstrating at least the key critical component and you can utilise synthetic and simulated data for validation. You need to demonstrate how you will achieve state of the art performance if capability already exists, or new to the world capability if the technology is further developed.
Your proposal must deliver one or more of the following:
Portfolio approach
Innovate UK want to fund a variety of projects across different technologies, markets, technological maturities, research categories and themes. Innovate UK call this a portfolio approach.
Your project must focus on one or more of the following:
Fundamental AI research:
AI for materials discovery of:
This list is not intended to be exhaustive
AI for biosciences and health:
AI for defence and national security:
AI aided design for:
Your project must:
Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Grant Offer Letter has been approved by Innovate UK. Any delays within Project Setup may mean we need to delay your project start date.
You must only include eligible project costs in your application. See our overview of eligible project costs. For specific guidance, see the eligibility section in this competition.
If your project’s total costs falls outside of our eligibility criteria, you must provide justification by email to support@iuk.ukri.org at least 10 working days before the competition closes. Innovate UK will decide whether to approve your request.
If you have not requested approval or your application has not been approved by us, you will be made ineligible. Your application will then not be sent for assessment.
Lead organisation
To work alone your organisation must be a UK registered business of any size.
More information on the different types of organisation can be found in our Funding rules.
Subcontractors
Subcontractors are allowed in this competition.
Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.
You cannot use subcontractors from overseas.
All subcontractor costs must be justified and appropriate to the total eligible project costs.
Subcontracting costs are limited to 20% of total project costs.
Number of applications
A business can only lead on one application.
Sanctions
This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.
Use of animals in research and innovation
Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.
Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.
Innovate UK are not funding projects that:
Innovate UK cannot fund projects that are:
A minimum of £1.6 million has been allocated to fund innovation projects in this competition. This is subject to a sufficient number of high quality applications being received. Funding will be in the form of a grant.
Innovate UK reserve the right to adjust funding allocations for any of our competitions under exceptional circumstances, for example, in response to changes in policy, portfolio funding considerations, or broader government funding decisions.
If your organisation’s work on the project is commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.
Choose the applicable categories below for the Research, Development and Innovation Streamlined Subsidy Scheme:
Category 1 Feasibility studies
Funding available for your eligible project costs of:
Category 2 Industrial research projects
Funding available for your eligible project costs of:
For more information on company sizes, please refer to the company accounts guidance.
If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.
Innovate UK may revoke our decision to provide funding without notice if government commitment for this initiative is withdrawn.
Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.