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

CreaTech Frontiers Launch Unlocks £250K in Funding for West Midlands Creative Innovators

Creative SMEs in the West Midlands are being given a major boost with the launch of CreaTech Frontiers, a new innovation cluster that has opened applications for the first £250,000 round of grant funding.

The programme, which offers individual grants of up to £10,000, is designed to help freelancers and small creative businesses develop groundbreaking ideas at the intersection of creativity and technology. The funding forms part of a £7.2 million, five-year initiative led by a consortium of regional powerhouses including Birmingham City University (BCU), University of Birmingham, Coventry University, University of Warwick, and the Royal Shakespeare Company. It’s funded by the Arts and Humanities Research Council as part of the UK Research and Innovation's Creative Industries Cluster Programme.

Photo Credit: University of Warwick

Officially launched on April 29 at STEAMhouse, BCU’s innovation centre, CreaTech Frontiers marks the first time the West Midlands has received funding through this prestigious national scheme.

Professor Lamberto Coccioli, Director of CreaTech Frontiers, said:

“These early-stage grants will give creative entrepreneurs access not just to capital, but also to university-led research and resources that can turn ambitious ideas into reality. This is about unlocking cultural, social and economic value across the region.”

CreaTech Frontiers is aiming to ignite a wave of innovation in sectors like gaming, immersive tech, live performance, visual arts, and creative technologies. Successful applicants will also gain access to facilities across the five partner institutions, along with specialist academic support during the R&D phase.

Future plans include a second, larger round of grant funding, a pilot with Birmingham Opera Company, collaborative projects with the Royal Shakespeare Company, and the formation of an apprenticeship working group to support skills development.

Rachel Davis, Director of Warwick Enterprise, said:

“Through this collaboration, we’re strengthening the region’s identity as a creative and tech innovation hub. With a shared focus on inclusion and sustainability, CreaTech Frontiers will ensure diverse voices are at the forefront of this growing ecosystem.”

The West Midlands Combined Authority is also backing the initiative, which it believes could contribute £65 million and create 1,500 jobs by 2030 within the regional creative and gaming economy.

West Midlands Mayor Richard Parker added:

“Our region is full of bold, young thinkers pushing the boundaries of tech and creativity. CreaTech Frontiers connects these minds with the world-class research coming out of our universities, creating the conditions for global impact.”

Applications open Monday 2 June 2025.

Interested SMEs can register now

to be part of the next generation of CreaTech pioneers.

By Anushka Malhotra

2 May