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Innovate UK and local funding for AI projects: what SMEs should check
By Leena Gopinath, DeeAutomation · 22 June 2026 · 2 min read
The short answer
Funding schemes change often, so check Innovate UK’s current opportunities and your local business support before planning around any grant. Funders typically look for genuine innovation, a credible plan, a capable team and, often, some match funding from you. A delivery partner can help scope the project.
Funding changes, so check the source
Grants, competitions and local support schemes open, close and change their rules regularly. Anything written in a blog post, including this one, can be out of date.
The reliable starting point is the Innovate UK website (innovateuk.ukri.org), where current opportunities and eligibility rules are published. Also ask your local business support network what is available in your area, because regional programmes can differ.
What funders usually want to see
- Innovation: something new or meaningfully improved, not simply buying existing software.
- A clear plan: objectives, stages, risks and how you will measure progress.
- A capable team: the skills and delivery experience to do what you propose.
- Commercial potential: how the project benefits your business or the wider market.
- Match funding: many schemes expect you to contribute part of the cost.
Is your AI project a fit?
Routine adoption of an off-the-shelf tool is unlikely to count as innovation for many schemes. Projects that involve genuine technical uncertainty, new approaches to a sector problem or novel use of data are more likely to be relevant.
Be honest in your own assessment. Applications take real time to prepare, so it is worth asking early whether your project truly matches what a scheme is trying to fund, rather than shaping the project to fit.
Preparing before you apply
- Read the current scheme guidance in full, including eligibility and assessment criteria.
- Define the problem, the proposed approach and what success looks like.
- Work out your own contribution and cash flow, since funding may be paid in arrears.
- Gather evidence of need, such as customer feedback or process data.
- Talk to the funder or local adviser before investing days in an application.
Where a delivery partner can help
A technical partner can help you scope what is feasible, break the work into stages, describe the approach clearly and estimate effort realistically. That makes your plan more credible.
A partner cannot guarantee funding, and no one should promise it. Decisions rest with the funder. This article is general information, not financial or professional advice, so take advice suited to your situation before committing.
Frequently asked questions
Can we get a grant for any AI project?
No. Schemes have their own criteria, and many focus on innovation rather than adopting existing tools. Check the current eligibility rules and speak to the funder or a local adviser early.
Will we need to put our own money in?
Often schemes expect some contribution from the business, but this varies. Check the guidance for each opportunity and plan your cash flow, as payments may arrive after costs are incurred.
Do you guarantee funding for projects you help scope?
No. Funding decisions are made by the funder, and we cannot promise outcomes. What we can do is help you define a clear, realistic project that you can present well.
Want to talk it through?
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This article is general information, not legal, financial or tax advice. Check current official guidance for your situation.