UK AI Funding
Government Funding to Accelerate Your AI Journey
UK grants of up to £100,000 are available for food manufacturers adopting AI and digital technology. We can help you find the right programmes and access the funding.
Funding at a Glance
Key figures from current UK government AI and innovation funding programmes.
£2bn
UK government AI investment (by 2030)
£100k
Maximum grant per project (BridgeAI)
50%
Matched funding (Made Smarter)
Up to 20%
R&D tax credit rate (RDEC)
Digital Adoption for Manufacturing SMEs
Up to £20,000 (50% matched)
What It Offers
- Matched funding up to £20k for digital technology projects
- Free expert advisory and digital roadmapping
- Workshops, leadership programmes, and digital internships
- Support for AI, IoT, robotics, and data analytics adoption
Key Details
- Available to manufacturing SMEs across all nine English regions
- Expanding to Scotland, Wales, and Northern Ireland in 2026-27
- 50% co-investment — you fund half, the programme matches it
- Includes ongoing mentoring from industry-experienced advisors
- Particularly strong track record in food and drink manufacturing
AI Adoption for High-Potential Sectors
Up to £100,000
What It Offers
- Grants up to £100k for AI adoption projects
- Agriculture and food processing is a named priority sector
- Access to AI expertise, datasets, and research partnerships
- Support from feasibility through to commercial deployment
Key Details
- Open to UK SMEs and research organisations
- Collaborative projects with AI specialists encouraged
- Focus on sectors where AI can drive significant productivity gains
- Multiple funding rounds — check current availability
UK Sovereign AI Fund
£500 million fund
What It Offers
- Investment and support for UK AI companies and scale-ups
- Access to compute infrastructure, talent programmes, and partnerships
- Part of the UK government's AI investment commitment
- Backed by DSIT with frontier AI partnerships (Anthropic, OpenAI, Nvidia)
Key Details
- Launching April 2026 — chaired by James Wise (Balderton Capital)
- Targets high-potential startups and scale-ups in the AI value chain
- Includes the Encode Fellowship for global AI talent recruitment
- Register interest via sovereignai.gov.uk
R&D Tax Credits (RDEC)
Up to 20% above-the-line credit on eligible R&D spend
What It Offers
- Up to 20% above-the-line tax credit under the merged RDEC scheme (from April 2024)
- Custom AI and software development work often qualifies
- Can be claimed retrospectively for up to two prior accounting periods
- Available to all UK companies undertaking qualifying R&D
Key Details
- Applies to projects that seek to advance science or technology
- Covers staff costs, software, consumables, and subcontracted R&D
- No minimum spend — all qualifying expenditure is eligible
- Claims submitted through your Corporation Tax return
- Effective benefit depends on your tax position — speak to your accountant for specifics
The Bigger Picture
The UK government has committed over £2 billion to AI investment by 2030, alongside the creation of AI Growth Zones — designated sites for AI-enabled data centres with enhanced power supply and streamlined planning.
For food manufacturers, this means a growing ecosystem of support — from direct grants and tax relief to advisory services and research partnerships. The window for early adopters to benefit most is now.
How We Can Help You Access Funding
We can guide you through the full funding journey — from identifying the right programmes to delivering the funded project and completing the paperwork.
Identify
We will review your project goals and match you with the most relevant funding programmes, assessing your eligibility and likely success.
Apply
We will help you prepare a compelling application — defining scope, outcomes, and budget in the language that funding bodies expect.
Deliver
We build and deliver the funded project to specification, ensuring milestones and reporting requirements are met.
Report
We will support you through completion reports, financial claims, and any audits — so you get the full benefit of any funding awarded.
Grant availability, eligibility criteria, and funding amounts are subject to change. The information on this page was last reviewed in April 2026. We recommend checking official programme websites for the latest details. Capability Systems does not guarantee funding outcomes — we provide guidance and support to help you submit the strongest possible application.
Find Out What Funding You Could Access
Many food manufacturers qualify for government grants they do not know about. We can help you assess your eligibility and build a strong application — at no cost for the initial conversation.
Funding programmes have limited windows — early applications are often more successful.