West Midlands Businesses to Benefit from £7M AI Innovation Fund

By Anushka Malhotra

1 minute 05 seconds

Investment

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Quick Read: More than 100 AI trials, including 12 in the West Midlands, will receive a share of £7 million in Government funding to boost productivity and drive innovation in small businesses.

More than 100 AI-driven projects are set to transform small businesses across the UK, including 12 in the West Midlands, as part of a £7 million Government-backed initiative to enhance productivity and economic growth.

AI to Drive Business Innovation

The first wave of AI trials, supported by Government funding, will explore how artificial intelligence can improve efficiency in various industries. Projects include an AI tool predicting potholes before they form, a system to detect mould risks in buildings, and an AI-powered waste reduction system in bakeries.

These initiatives are part of the AI Opportunities Action Plan, which Prime Minister Rishi Sunak confirmed would incorporate 50 recommendations from tech entrepreneur Matt Clifford to advance the UK's AI sector. The plan aims to boost AI infrastructure, increase adoption in public services, and introduce regulatory measures to ensure safe implementation.

Driving Economic Growth

The Government says this initiative will help spread AI adoption across the country, improving living standards, creating jobs, and driving economic productivity.

Science and Technology Secretary Peter Kyle highlighted AI’s transformative potential:

"AI can help businesses cut waste, move faster, and be more productive. From farmers and bakers to those tackling potholes and housing issues, these projects showcase the limitless possibilities of AI. With our 50-point AI Opportunities Plan, we are committed to harnessing AI to drive a decade of national renewal and fuel our Plan for Change."

This funding marks a major step towards integrating AI into everyday business operations, ensuring that small enterprises can leverage cutting-edge technology to thrive in a competitive economy.

What's new

West Midlands Health Tech Innovation Accelerator Unlocks Nearly £50M in Private Investment

The West Midlands Health Tech Innovation Accelerator (WMHTIA), led by the University of Birmingham, has generated an impressive £49.4 million in private co-investment within its first two years, significantly surpassing its original £14.5 million public funding allocation.

Funded through the Innovation Accelerator programme, coordinated by Innovate UK, the Department for Science, Innovation and Technology, and UK Research and Innovation, WMHTIA has become a leading force in advancing health technology innovation across the region.

The majority of the private investment—£36.3 million—was directly committed by investors to enterprises supported by the Accelerator. This achievement represents a threefold return on the initial public investment, demonstrating the strong investor confidence in the region’s health tech sector.

Powering Health Innovation Through Collaboration

The WMHTIA brings together 21 partners from academia, industry, and the NHS to help healthtech companies develop, validate, and commercialise cutting-edge medical technologies. So far, companies supported through the programme have also secured an additional £10 million in national public grants from agencies including NIHR, Eureka, and Innovate UK.

Including both public and private contributions, the total investment leveraged by WMHTIA now stands at £67.3 million.

Professor Adam Tickell, Vice-Chancellor, University of Birmingham:

We’re proud to support startups through the riskiest stages of innovation so more life-saving technologies reach patients. This exceptional investment proves what’s possible when academia, the NHS, and industry work together to drive economic growth and better health outcomes.

In March 2025, the Innovation Accelerator programme was extended with a further £30 million, including £4 million for the WMHTIA to continue supporting the region’s innovators in 2025/26.

Backing the Future of Health Tech

Richard Parker, Mayor of the West Midlands:

The West Midlands is leading medical tech innovation—from faster diagnoses to shorter hospital stays. Healthtech isn’t just improving lives; it’s creating secure, high-value jobs that drive inclusive growth.

Dean Cook, Executive Director of Place and Global, Innovate UK:

This programme shows how place-based innovation can unlock greater business investment in R&D. By connecting the region’s strengths, we’re creating high-value jobs and building globally significant innovation capability.

The WMHTIA continues to strengthen the region’s reputation as a national hub for health technology, with far-reaching benefits for patient care, job creation, and regional economic development.

By Anushka Malhotra

24 Jun