The UK government is significantly increasing funding for artificial intelligence, video games, and other high-growth sectors as part of a wider strategy to strengthen the national economy. Up to £12 billion will be distributed across ten priority industries over the next four years through UK Research and Innovation (UKRI).
AI will receive the largest share at £1.6 billion, followed by life sciences, advanced manufacturing, clean energy, and quantum computing. Funding for creative industries, including film, music, and video games, will see the biggest proportional increase, rising by up to 100 percent.
Sir Ian Chapman, chief executive of UKRI, admitted the agency has historically struggled to translate research into economic growth. Under the new approach, funding will be more tightly linked to sectors identified by ministers as economically strategic.
Rather than competing directly with global tech giants in areas such as large language models, the UK plans to focus on less crowded, higher-risk technologies. These include energy-efficient AI systems and next-generation algorithms with potential long-term impact.
Chapman also confirmed that fewer projects will receive funding, but those that do will get larger awards. While pure academic research funding will remain stable, the emphasis will shift toward innovation with clear commercial and economic benefits.
More Insight
This move aligns with a broader global trend where governments are using public research funding to attract private investment and retain high-tech talent. The UK’s focus on AI efficiency and creative technology reflects concerns over energy consumption, global competition, and long-term sustainability.
However, critics argue that funding shifts alone may not be enough, pointing to challenges such as university budget pressures, visa restrictions, and competition from better-funded tech hubs abroad.
Author: Oje.Ese