At London Tech Week 2026 — held at Olympia London from 8 to 12 June — the UK Government unveiled a £200 million package specifically designed to help smaller businesses integrate AI into their day-to-day operations. If you haven’t heard about it yet, you’re not alone. Most SME owners haven’t. But this is real money, and it’s aimed squarely at businesses like yours.

Alongside the national fund, the Mayor of London announced a separate £12 million pot targeting London-based SMEs. Together, these two funds represent the most significant government investment in SME AI adoption the UK has ever made.

Why now?

The UK is behind. Recent figures show that France and Germany have both moved faster on getting AI into small and medium businesses — partly through earlier investment programmes, partly through stronger business networks that made adoption feel less daunting. This package is a deliberate catch-up move. The government wants more British SMEs using AI by the end of 2026, and it’s putting funding in place to make that happen.

What the fund actually covers

This isn’t a single grant scheme. It’s a package of measures, including:

  • AI readiness assessments — structured reviews to help you understand where AI could have the most impact in your business
  • Staff training vouchers — subsidised training to bring your team up to speed on AI tools relevant to your sector
  • Technology adoption grants — direct funding towards the cost of implementing AI tools and platforms
  • Pilot project funding — support for businesses running a defined AI project for the first time

The aim is to remove the barriers that stop most SMEs from getting started: cost, uncertainty about where to begin, and lack of internal expertise.

Who is eligible?

The national £200m fund is open to UK-registered SMEs with fewer than 250 employees. The £12m Mayor of London fund applies additional criteria — your business needs to be based in London to qualify for that strand.

Beyond those basics, eligibility will depend on the specific scheme you apply for. Some elements are sector-agnostic; others may prioritise industries where AI adoption could have the greatest economic impact.

How to access it

The Department for Science, Innovation and Technology (DSIT) is the lead government body overseeing the programme. But you won’t apply directly to DSIT in most cases. The access point for most businesses will be your local Growth Hub — the network of business support organisations funded by the government to help companies in their region grow. Find yours at the Business Support Helpline.

For the grant elements — particularly anything linked to technology adoption or pilot projects — Innovate UK is likely to be the route in. Innovate UK already runs several funding competitions for business innovation, and this package is expected to flow through their existing application infrastructure.

What kinds of AI projects are likely to qualify?

Based on the stated aims of the fund, projects in these areas look well-suited:

  • Customer service automation — chatbots, AI-assisted responses, smarter routing of enquiries
  • Back-office efficiency — automating admin tasks, invoicing, scheduling, HR processes
  • Data analysis — turning the data your business already holds into useful insight
  • Supply chain tools — forecasting, stock management, supplier monitoring

If your project saves time, reduces cost, or helps you make better decisions using AI, it’s worth exploring whether it fits.

What to do this week

You don’t need to wait for a formal application window to open before you act. Here’s a practical four-step plan:

  1. Find your local Growth Hub and register your interest. Being in their system means you’ll hear about funding opportunities as soon as they’re confirmed.
  2. Document what you’re already doing with AI — or what you’ve been considering. A clear description of the problem you’re trying to solve will be the foundation of any application.
  3. Get an outside perspective on where AI could help your business. ApplyAI.org.uk is purpose-built to help businesses apply AI practically — they’re well-placed to help you identify the right opportunity and shape an application around it.
  4. Think about what you’d actually build. The fund is designed to support businesses implementing real tools, not just exploring ideas. BuildApps.co.uk specialises in building AI-powered tools for businesses — worth a conversation if you want to know what’s realistic.

If you want to learn from other SME owners who are already using AI in their businesses, the LTI Circle is where those conversations are happening. Members are sharing what’s working, what isn’t, and how they’re thinking about opportunities like this one.

The bottom line

This money exists for businesses that are willing to take a first step. The government isn’t handing it to businesses that have already figured AI out — it’s investing in the ones that are ready to start. If that’s you, the timing couldn’t be better. The fund is live, the access routes are open, and the businesses that move quickly will have the best chance of securing support.

Don’t let this one pass you by because it sounded too complicated to look into. It isn’t.