UK AI Funding
Government Funding to Accelerate Your AI Journey
UK grants of up to £200,000 are available for food manufacturers adopting AI and digital technology. We help you find the right programmes and access the funding.
Funding at a Glance
Key figures from current UK government AI and innovation funding programmes.
£2bn
UK government AI investment (2026–2030)
£200k
Maximum grant per project (BridgeAI)
50%
Matched funding (Made Smarter)
20%
R&D tax credit rate
Digital Adoption for Manufacturing SMEs
Up to £20,000 (50% matched)
What It Offers
- Matched funding up to £20k for digital technology projects
- Free expert advisory and digital roadmapping
- Workshops, leadership programmes, and digital internships
- Support for AI, IoT, robotics, and data analytics adoption
Key Details
- Open to manufacturing SMEs in eligible UK regions
- 50% co-investment — you fund half, the programme matches it
- Includes ongoing mentoring from industry-experienced advisors
- Particularly strong track record in food and drink manufacturing
AI Adoption for High-Potential Sectors
Up to £200,000
What It Offers
- Grants up to £200k for AI adoption projects
- Agriculture and food processing is a named priority sector
- Access to AI expertise, datasets, and research partnerships
- Support from feasibility through to commercial deployment
Key Details
- Open to UK SMEs and research organisations
- Collaborative projects with AI specialists encouraged
- Focus on sectors where AI can drive significant productivity gains
- Multiple funding rounds — check current availability
Proof-of-Concept AI Grants
£50,000 – £120,000
What It Offers
- Funding for proof-of-concept AI projects
- Aimed at accelerating practical AI deployment in UK organisations
- Supports early-stage projects through to demonstrable prototypes
- Part of the UK government's broader sovereign AI strategy
Key Details
- Open to UK organisations with viable AI use cases
- Typical awards between £50k and £120k
- Focus on projects with clear commercial or operational impact
- Competitive application process with periodic funding rounds
R&D Tax Credits (RDEC)
20% credit on eligible R&D spend
What It Offers
- 20% tax credit on qualifying research and development expenditure
- Custom AI and software development work often qualifies
- Can be claimed retrospectively for up to two prior accounting periods
- Available to all UK companies undertaking qualifying R&D
Key Details
- Applies to projects that seek to advance science or technology
- Covers staff costs, software, consumables, and subcontracted R&D
- No minimum spend — all qualifying expenditure is eligible
- Claims submitted through your Corporation Tax return
The Bigger Picture
The UK government has committed £2 billion to AI investment between 2026 and 2030, alongside the creation of AI Growth Zones — regional hubs receiving up to £5 million each to support local AI adoption, infrastructure, and skills development.
For food manufacturers, this means a growing ecosystem of support — from direct grants and tax relief to advisory services and research partnerships. The window for early adopters to benefit most is now.
How We Help You Access Funding
We guide you through the full funding journey — from identifying the right programmes to delivering the funded project and completing the paperwork.
Identify
We review your project goals and match you with the most relevant funding programmes, assessing your eligibility and likely success.
Apply
We help you prepare a compelling application — defining scope, outcomes, and budget in the language that funding bodies expect.
Deliver
We build and deliver the funded project to specification, ensuring milestones and reporting requirements are met throughout.
Report
We support you through completion reports, financial claims, and any audits — so you get the full benefit of the funding awarded.
Grant availability, eligibility criteria, and funding amounts are subject to change. The information on this page was last reviewed in March 2026. We recommend checking official programme websites for the latest details. Capability Systems does not guarantee funding outcomes — we provide guidance and support to help you submit the strongest possible application.
Find Out What Funding You Could Access
Many food manufacturers qualify for government grants they do not know about. We can assess your eligibility and help you build a strong application — at no cost for the initial conversation.
Funding programmes have limited windows — early applications are often more successful.