The Welsh government has announced £2.1 million in funding to provide dedicated support to help small and medium-sized businesses across Wales adopt artificial intelligence (AI) and improve productivity.
The investment will fund a package of initiatives designed to help Welsh SMEs, entrepreneurs and microbusinesses integrate AI into everyday business practices “ethically and effectively”, with the aim of boosting innovation, competitiveness and growth.
Of the total funding, £600,000 will go to Business Wales to develop and deliver an AI awareness and adoption support programme. The Welsh Government said the programme will implement recommendations from recent reviews on SME productivity and AI uptake.
A further £500,000 will be allocated to AI support for the tourism and events sectors, including an AI Pollination Project delivered in partnership with the Hartree Centre Cardiff Hub (HCCH) and Cardiff University’s Digital Transformation Innovation Institute (DTII).
Alongside this, in-person workshops will provide up to 1,000 tourism microbusinesses and SMEs with practical AI training focused on digital marketing and content creation.
AI upskilling offer via Flexible Skills Programme
The biggest share of the funding – £1m – will go towards an AI upskilling offer through the Flexible Skills Programme (FSP). The programme will target digital skills gaps across regions and industries, with employers paying 25 per cent of AI training costs (and 50 per cent for other FSP courses).
Skills Minister Jack Sargeant said the aim is to accelerate responsible AI adoption across Wales’ SME base.
“We recognise the huge potential of AI to supercharge business development and economic growth and are determined to do all we can to support the ambition of SMEs across Wales to develop the skills needed for future success,” he said.
Wholesale business highlights early AI gains
Swansea-based Something Different Wholesale was highlighted as one firm already using AI to strengthen operations. The giftware wholesaler – with £11m turnover, 75 staff, and 12,000 active B2B customers worldwide – uses AI to process data and generate market insight, automate time-consuming tasks and support customer services. The company is also launching a new website using AI to translate content into multiple languages.
“Artificial intelligence is advancing at a rapid pace and businesses that successfully adopt AI and integrate it into their processes will gain a significant competitive advantage. However, many SMEs lack the in-house expertise needed to utilise the latest technologies effectively,” Jane Wallace-Jones, founder of Something Different Wholesale, said, adding:
“This Welsh government funding presents a valuable opportunity for Welsh businesses like ours to access high-quality AI training and improve productivity.”
Cabinet secretary for economy, energy and planning Rebecca Evans said the funding builds on recent Welsh innovation showcases and supports delivery of the AI Plan for Wales.
“AI is transforming the business sector, improving productivity and driving change,” she said. “This programme of AI awareness, adoption and upskilling will help us ensure SMEs across all sectors in Wales are prepared to optimise the potential of emerging AI technologies in responsible, inclusive and ambitious ways.”