Frontier AI: SME Champions, Phase 1

About the opportunity

Innovate UK is providing up to £3.1 million to support UK SMEs developing innovative frontier AI and machine learning technologies. This is the first phase of a proposed three-phase programme supporting technical validation, development and eventual commercialisation.

Funding available

• Eligible project costs must be between £150,000 and £250,000.
• Grants can cover up to 70% of eligible costs for micro and small businesses, or 60% for medium-sized businesses.
• Projects must last between 1 and 3 months, starting by 1 April 2027 and ending by 30 June 2027.

Eligibility

Applications are open to UK-registered SMEs applying individually. Projects must demonstrate genuinely novel AI or machine learning capabilities, with a clear route to commercialisation and a defensible competitive advantage. Technologies must be at Technology Readiness Level (TRL) 1 to 3 at the point of application.

Priority themes

Theme 1: AI-enabled health and life sciences, including predictive healthcare, medicines discovery, manufacturing optimisation and genomics.

Theme 2: Advanced materials with AI.

Theme 3: Secure AI for National Security and Defence (NS&D)

Theme 4: AI safety and assurance technologies.

Projects must deliver a proof of concept, technical validation against defined metrics, evidence of innovation and a technical whitepaper. Routine integration of existing AI tools without substantive technical innovation is not eligible.

Application deadline: 11 November 2026, 11am UK time.

Full eligibility criteria and application guidance are available on the Innovate UK competition website.