TLDR:
- UK AI sector saw a surge in investment in 2023, with startups raising $3.4 billion.
- Despite the hype, only 9% of total VC investment went to pure generative AI startups.
Investment in the UK’s AI sector reached new heights in 2023, with startups raising $3.4 billion, marking the second-highest total on record. The UK has the biggest AI sector in Europe, valued at $92 billion, and is home to over 1,800 VC-backed AI startups. The top three raises in 2023 were made by Conigital, Abound, and Builder.ai, showcasing the growing interest in AI technologies.
However, despite the overall growth in AI investment, only 9% of total VC funding went to pure generative AI startups in 2023. While there has been a significant increase in generative AI raises in the past two years, investors are looking for responsible and sustainable deployment of AI technologies. The UK tech sector overall reached a record market valuation of $1.08 trillion in 2023, making it the third most valuable in the world after the US and China.
