May 1, 2025 ( Newswire) , rated as a top 100 investment website for investment, issues market commentary from Louis Napoletani, Founder & CEO of Mottli.

The United Kingdom’s artificial intelligence (AI) startup ecosystem has shown strong momentum entering 2025, led by a record USD 1.03 billion in venture capital raised in Q1, marking the most active first quarter since 2021. The broader UK AI market is now valued at USD 230 billion, making it the largest in Europe and third globally, following the United States and China.

In 2024, UK AI startups secured up to USD 4.3 billion in funding, representing 27% of all UK venture capital. London continues to dominate the domestic AI market, drawing USD 3.6 billion in AI investment in 2024 alone. The city hosts 1,603 AI startups, including 33 large firms and 14 unicorns, representing 71% of the UK’s total AI funding over the past five years.

Corporate demand for AI adoption is accelerating: 54% of UK companies plan to increase AI-related spending in 2025, with an average projected budget growth of 29%. Only 4% of firms anticipate reducing AI investment. Concurrently, 63% of businesses are prioritising workforce development, with targeted initiatives in AI upskilling and training.

The government’s AI Opportunities Action Plan aims to further scale the sector, with forecasts indicating a potential GBP 47 billion in annual economic output and the creation of 13,250 new jobs. Strategic infrastructure investments, including the establishment of AI Growth Zones and a new 500MW data centre in Oxfordshire, exhibit the UK’s ambition to become a global leader in AI.

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