A new report shows that the UK artificial intelligence sector is the most valuable in Europe

A new report shows that the UK artificial intelligence (AI) sector is valued at £72 billion, making it number one in Europe.

Tech Nation’s UK Tech in the Age of AI report means the UK now has the opportunity to “lead the responsible development of artificial intelligence on a global scale,” said Carolyn Dawson, chief executive of Founders Forum Group.

It currently ranks fourth in the world, behind the United States, China and Israel.

Dawson added: “We are witnessing another landmark achievement in British technology and another milestone in our extraordinary development history.”

The data showed that 16 per cent of total UK venture capital (VC) investment in the first quarter (Q1) of 2024 went to AI start-ups, suggesting a growing appetite for the industry.

The report shows that there are 1,800 VC-backed AI start-ups and 20 AI unicorns in the UK.

The results also suggest that Scotland has become a hub for AI innovation, with almost 19 per cent of all technology investment in 2023 going towards innovative technologies.

Edinburgh was also named as one of the largest artificial intelligence clusters in the UK, behind only London, Oxford and Cambridge.

Meanwhile, the figures suggest that skepticism around artificial intelligence may be waning – almost seven in ten British tech professionals believe it will have a transformative impact on the UK economy.

The same study also revealed that over 70 percent of professionals believe that AI is having a positive impact on the industry, with one in two using it to improve their existing product offerings.

In the broader technology sector, UK-based funds investing in tech startups raised $50.2 billion in the first quarter of 2024, a quarterly record.