The TechLocal initiative, backed by £18 million, will provide seed funding to small businesses focused on developing innovative tech products and utilizing AI.

Additionally, the TechExpert programme aims to support 500 domestic PhD students with research funding of up to £10,000 each in tech-related fields, totaling £48.4 million.

Recently, Sir Keir Starmer hosted a private reception at Chequers with influential tech leaders, including former Google CEO Eric Schmidt, to discuss the government's tech initiatives.

On an upcoming Tuesday, Starmer plans to meet with industry figures, including young AI entrepreneur Toby Brown, who recently raised $1 million for his startup, Beem.

Technology Secretary Peter Kyle has acknowledged the limitations of AI, emphasizing that it is not infallible and can produce unreliable information, making understanding its workings crucial for safe use.

The government is also planning to legislate for AI use while modernizing copyright laws to ensure a balanced approach.

The announcement of these initiatives follows the establishment of Skills England, a new body aimed at aligning training policy with industry needs and addressing skills shortages in key sectors.

The programme is set to support over 4,000 graduates and innovators through scholarships and funding, enhancing the UK's tech talent pipeline.

The UK government has launched the TechFirst programme, which includes TechYouth, a £24 million initiative aimed at providing AI skills training to students in every secondary school across the country over the next three years.

Currently valued at £72.3 billion, the AI sector is projected to exceed £800 billion by 2035, indicating a growth rate significantly outpacing the overall economy.

Research commissioned by the Department for Science, Innovation and Technology suggests that AI will impact the roles of approximately 10 million workers by 2035.

To address the skills gap in AI, particularly for startups and regions outside London, the government recognizes that 33% of tech founders cite talent availability as a major barrier to growth.