Insurtechs back AI cash injection announced in Spring Budget

Insurtechs have welcomed the government’s announcement that it will inject more money towards the UK’s artificial intelligence (AI) industry.

Last week, chancellor Jeremy Hunt announced a range of new funding in the Spring Budget, including the doubling of investment for the Alan Turing Institute (ATI), the international body for data science AI.

This will bring its total funding to £100m, according to the government.

As well as this, Hunt announced a new £7.4m flexible AI upskilling fund, which will be used to help small and medium sized businesses (SMEs), including insurtechs, develop AI skills.

Melissa Collett, chief executive of Insurtech UK, told Insurance Times that the trade body welcomed ”the further support around developing AI technology skills”.

“Support like this is encouraging for the tech sector more broadly and we will want to ensure insurtechs can both participate and benefit in the delivery of these programmes.”

‘Fast-track’

In his speech, Hunt also noted that “the UK had double the amount of AI startups of anywhere in Europe”.

And figures from technology solution provider FIS, which were published in August 2023, found that 63% of insurance executives were investing in AI and machine learning in the UK alone. 

The government said it wanted to “put the UK on fast-track” to become a ”technology superpower” with the help of businesses using AI.

Janthana Kaenprakhamroy, chief executive and founder of Tapoly, said that “the substantial funding allocated towards AI aligns with [Tapoly’s] vision” for the future.

Kaenprakhamroy said: “These measures will not only bolster the UK’s position as a tech hub, but also ensure that we remain at the forefront of addressing global challenges through innovation.

“It’s an exciting time for the UK tech sector and I’m optimistic about the positive impact these policies will have on fostering a vibrant, diverse and innovative entrepreneurial community.”