The number of artificial intelligence (AI) companies established in the UK has reached a new peak in the last part of 2024, signaling a continued interest in harnessing this technology. Over 500 businesses that identify as “AI” were registered with Companies House from October to December 2024, according to recent data. This marks a substantial rebound compared to a slowdown in the previous two quarters, with a 22% increase from the third quarter of 2024 and a 21% rise since the same time last year.
While nearly half of these registrations occurred in London, there are indications that AI development is expanding to other regions. In 2024, the number of AI companies in London grew by 32% compared to 2023, but outside of the capital, the increase was even more significant at 42%.
Scotland reported the fastest growth, with more than an 80% surge in new AI companies, bringing the total to 60. Similarly, the South West saw a rise of nearly 80%, totaling 75 registered firms, while the West Midlands added over 100 new registrations, marking more than a 40% increase.
Looking beyond London, Birmingham and Manchester each welcomed 67 new AI businesses, followed by Reading with 53, Glasgow with 43, and Cambridge with 42.
Martin Ward, a former tech commissioner in the West Midlands, highlighted the region’s thriving tech scene. He noted that the West Midlands is home to one of the most dynamic tech sectors in the UK, thanks to its young population, excellent universities, and rich history of innovation. He emphasized that AI is playing a crucial role in a new industrial revolution, affecting productivity and competitiveness across society. The West Midlands, in particular, is home to over 300 specialized AI companies employing more than 11,000 people.
Russ Shaw, the founder of Tech London Advocates, also recognized the importance of this growth. He remarked that the newly released figures show how significant AI is becoming within the UK tech landscape and its role in boosting the economy. He pointed out that the evolution of AI technology continues to progress, from generative AI to emerging applications, and praised the spread of tech growth beyond London as a strong indicator of a more balanced distribution of innovation throughout the country.
Since the beginning of 2023, a total of 3,300 AI firms have been registered, with just over half located in London. However, it is essential to note that not all of these businesses may be genuine AI companies.
