The number of AI businesses founded in the UK hit a fresh high in the fourth quarter, UKTN has found, as the rush to find new ways to commercialise the technology shows no sign of slowing down.
More than 500 self-styled ‘AI’ companies were registered with Companies House between October and December 2024, according to figures obtained by UKTN, in a marked reversal of an apparent slowdown in the previous two quarters. The figure represents a rise of 22% compared to the third quarter of 2024 and an increase of 21% compared to the fourth quarter of 2023.
While just under half of those registrations took place within the Greater London region, there are signs that regions outside London are beginning to catch up as AI innovation spreads across the UK. Over the course of 2024, the number of AI companies registered in London rose by 32% compared to 2023 — but there was a rise of 42% seen outside the capital.
While starting from a low base, Scotland saw the fastest growth in 2024, with a more than 80% jump in AI registrations to 60, while the South West also saw a near-80% rise to 75 registrations, and the West Midlands saw a more than 40% rise to over 100 registrations.
Outside London, Birmingham and Manchester saw the highest number of AI companies founded, with 67 entities registered in each city, followed by Reading with 53, Glasgow with 43 and Cambridge with 42.
Martin Ward, former West Midlands Tech Commissioner, said: “The West Midlands boasts one of the most vibrant and fastest growing tech sectors in the UK, a fitting testament to our young and diverse population, numerous excellent higher education institutions and cultural heritage of powering innovation.
“AI is driving a new industrial revolution in productivity and competitiveness, with impact at all levels of society, and it’s heartening to see the region continuing its leadership with a growing AI cluster of over 300 specialist AI businesses employing more than 11,000 people.”
Read more: Tech report: AI in the West Midlands
Russ Shaw CBE, founder of Tech London Advocates and Global Tech Advocates, told UKTN: “These growth numbers reinforce how important AI is to the UK tech ecosystem and to the British economy going forward.
“We’re seeing a continued evolution in artificial intelligence, from the use of generative AI to the more recent applications of agentic AI. The UK has a very good track record — it’s fairly straightforward to setup companies here and I’m heartened to hear about growth beyond London. If it’s happening outside London, that’s a real vote of confidence that tech isn’t just sitting in one corner, it’s being spread across the nation.”
In total, some 3,300 ‘AI’ entities have been registered with Companies House since the beginning of 2023, of which just over half were based in London.
UKTN has not independently verified whether all of these businesses are genuine AI companies.
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