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18 Jun 2024

Tech Nation's 2024 report gives AI the spotlight, exploring 'UK Tech in the Age of AI'

Last week, Tech Nation released their 2024 report, offering a detailed analysis of the UK tech landscape with a special emphasis on AI and recent developments within the sector. This year's report also explores investment trends, startup growth, and AI's portrayal in the media.

From the offset, the report draws on the significant economic contribution of the UK tech sector, showcasing its impressive growth through a few key statistics:

  • The UK tech sector boasts 171 unicorns and a market valuation of $1.1 trillion, establishing it as the leading tech ecosystem in Europe.
  • In 2023, UK tech startups raised $21.3 billion, with the majority of investments concentrated in Greater London, followed by the East of England and the South-East.
  • Regions with limited investment include the South-West, North-East, and devolved nations, mirroring findings from techUK’s 2023 Local Digital Index.

The data reveals a high rate of start-ups in the sector, indicating a thriving entrepreneurial spirit across the UK. Additionally, the diversity of sectors these companies operate in highlights the robustness and adaptability of the UK tech industry. For instance, AI unicorns are emerging in various fields such as semiconductors, health, security, media, fintech, and transportation. Notable case companies like Wayve AI, Arcade Media, IBM, and Snoop illustrate the breadth and impact of the tech sector on UK society and the economy.

A central theme of this year’s report is the impact of AI on the UK tech industry. A notable highlight is the UK's leadership in AI investment, with over 1,800 VC-backed AI startups and 20 AI unicorns.

There is strong optimism that the UK can leverage its current leading position in Europe to become a global leader in AI. To achieve this, Tech Nation outlines a ‘10-Step Action Plan for UK Tech,’ detailing key strategies and recommendations to enhance the sector's competitiveness and innovation capabilities. This action plan serves as a roadmap for stakeholders to navigate the evolving tech landscape and capitalise on emerging opportunities. Recommendations include investing in AI skills development at scale, enhancing vital growth-stage support, and bridging the funding gap for women and under-represented founders.

A nod to the growing buzz around AI, over 400,000 articles about AI were published in UK media last year. This coverage encapsulated perceptions and impacts of AI on society, from life-saving technologies to the impacts on future jobs and work. Another focus centres around the role of investment in scaling businesses and driving technological advancements - indicating that more targeted funding is needed to drive further invesment and meet levels of international counterparts such as the US.

As we approach the UK General Election, and digital technology continues to play a growing role in driving economic growth, this report provides an insightful overview of the state of the UK tech sector. It is clear that there are opportunities for future growth, and leveraging the UK's unique advantages.

 

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Neil Ross

Neil Ross

Associate Director, Policy, techUK

 

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