Sovereign Artificial Intelligence Series One – Funding UK Leadership in AI Sovereignty

Programme:Innovate UK

Awards:£100k-£400k

Geographical Scope:national

Beneficiaries:private

Key Features:Accelerating proof-of-concept projects that strengthen the UK’s capability to build sovereign artificial intelligence systems.

Key facts

Funding type: Grant
Total funding available: £1.6 million shared across projects
Project type: Proof-of-concept demonstrators in AI sovereignty
Eligibility: UK-registered businesses (SMEs welcome)
Opening date: 11 August 2025, 9:30 am UK time
Closing date: 10 September 2025, 11:00 am UK time
Competition code: Sovereign AI Series One
Funder: Innovate UK (as part of UKRI)
Duration: Projects expected to run between 3–12 months

Scope

The competition is seeking proof of concept projects that address one or more of the following priority areas:

Model development and evaluation: Building or refining AI models that are transparent, secure, and optimised for UK specific requirements.
Compute and infrastructure innovation: Solutions that reduce dependency on global hyperscalers, including novel hardware approaches, distributed compute, and energy efficient systems.
Data pipelines and access: Secure and ethical data architectures that can be controlled within UK jurisdictions, with robust governance frameworks.
Sector focused sovereign AI applications: AI demonstrators in sensitive or strategic areas such as defence, health, financial services, agriculture, or national infrastructure.
Verification and assurance tools: Systems that prove trustworthiness, resilience, and compliance of AI systems, essential for public sector adoption.

Projects must be proof of concept demonstrators, meaning they should show technical feasibility, generate evidence of value, and de risk future large scale implementation.

Funding and Costs

Total budget: £1.6 million.
Grant size: While no specific maximum per project is stated, awards will likely range from £100k–£400k, depending on scope and applicant pool.
Eligible costs:
- Staff time and salaries directly linked to project delivery.
- Specialist contractors and consultants.
- Equipment and software licences required for proof of concept activities.
- Consumables, prototyping materials, and testing facilities.
- Dissemination and engagement activities to share outcomes with stakeholders.

SMEs benefit from higher intervention rates (up to 70% for research activities) compared to larger companies.

How to Apply

Applications must be submitted through the Innovation Funding Service portal.

The process involves:

Registration on the IFS system.
Completion of application form covering project description, objectives, technical approach, and expected outcomes.
Business case and financials outlining costs, funding sought, and SME eligibility.
Impact statement addressing how the project contributes to UK sovereign AI capability and aligns with Innovate UK’s national priorities.

Tips from FI Group experts:

Focus on proof of concept clarity. Assessors want to see projects that can clearly demonstrate feasibility within 12 months.
Highlight how your solution reduces UK dependency on foreign controlled infrastructure or models.
Quantify expected benefits, such as jobs created, economic value, or resilience improvements.
Be explicit about scalability: show how your demonstrator could lead to larger deployments.

Why Apply

The Sovereign AI Series One competition is more than just a grant opportunity. It is a chance for SMEs to:

Position at the centre of UK AI strategy and influence future national infrastructure.
Build credibility with government, regulators, and potential investors.
De risk scaling by securing public funding for early stage demonstrators.
Access a growing ecosystem of partners, including universities, public sector bodies, and larger tech firms looking for sovereign solutions.
Shape standards and regulation. By participating early, SMEs can help set the frameworks for sovereign AI adoption in sensitive sectors.

For SMEs with innovative AI technologies, this competition represents a unique chance to gain visibility and traction within national programmes.

Overview

The Sovereign Artificial Intelligence Series One competition marks a critical step in the UK’s strategy to strengthen domestic AI capabilities and reduce reliance on overseas technologies. With a total fund of £1.6 million, Innovate UK is supporting proof of concept demonstrators that can showcase cutting edge AI systems aligned to national priorities.

AI has become the defining technology of our era, underpinning everything from life sciences to advanced manufacturing. Yet, the UK Government recognises that without sovereign AI capacity, meaning control over infrastructure, models, data pipelines, and security, national resilience and competitiveness could be at risk. This funding call responds directly to that challenge.

For SMEs, this competition offers a rare chance to demonstrate innovation in areas such as trusted AI models, national compute platforms, data security, or sector specific applications where sovereignty is paramount.

Eligibility

The competition is open to:

UK registered businesses of any size (single applicant or collaborative consortia).
SMEs are strongly encouraged to apply and may lead projects.
Collaborators can include research organisations, universities, public sector bodies, or not for profits.
Subcontractors are permitted where specialised expertise is needed.

Key conditions:

All work must be carried out in the UK.
Project results must be exploited within the UK economy.
Each applicant must show clear evidence of how their project strengthens UK sovereign AI capability.

Deadlines and Dates

Opens: 11 August 2025, 9:30 am UK time
Closes: 10 September 2025, 11:00 am UK time
Project start: Expected from late 2025, subject to contract award
Project duration: 3–12 months

Applicants should prepare for short project timelines, making strong planning and resourcing critical.

Assessment

Applications will be assessed on the following criteria:

Strategic alignment: Does the project directly enhance UK sovereign AI capacity?
Innovation quality: Is the technology genuinely novel and beyond the current state of the art?
Commercial potential: Is there a clear route to market or adoption by UK public or private sector?
Team capability: Do the partners have the expertise and resources to deliver within the short project timeframe?
Value for money: Does the requested funding represent efficient use of public resources?

Projects that address multiple sovereignty dimensions, model, data, compute, and assurance, are likely to score highly.

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