Frontier AI: SME Champions, Phase 1 – Funding for Next-Generation AI Technologies
Artificial intelligence is transforming industries, creating opportunities for businesses to develop new products, improve operational performance and address complex technological challenges. However, developing genuinely novel AI technologies requires substantial research, technical validation and a clear strategy for commercialisation.
To support UK businesses working at the forefront of AI innovation, Innovate UK has launched the Frontier AI: SME Champions, Phase 1 competition, making up to £3.1 million available for early-stage feasibility and industrial research projects.
The competition aims to help UK-registered small and medium-sized enterprises (SMEs) validate ambitious AI and machine learning technologies capable of delivering significant performance improvements or enabling entirely new products, services and platforms.
Unlike funding programmes focused on adopting existing AI solutions, this competition prioritises fundamental technical novelty, defensible intellectual property and measurable advances beyond current state-of-the-art capabilities.
Key Dates and Funding
Closes: 11 November 2026, 11:00am UK time
Total Funding Available: £3.1 million
Eligible Project Costs: £150,000 to £250,000
Project Duration: 1 to 3 months
Funding Rate: Up to 70% for micro and small enterprises and 60% for medium-sized enterprises
Projects must start by 1 April 2027 and finish by 30 June 2027.