Wales launches £2.1m fund to help SMEs adopt AI
The Welsh government has committed £2.1m to help SMEs across the country use AI in practical, productive ways. The focus: awareness, adoption, and upskilling so businesses can put AI to work, not just talk about it.
This isn't a vanity project. It's a structured push to move skills, productivity, and regional growth forward-while keeping ethics and inclusion in the frame.
How the funding breaks down
- £600,000 to Business Wales to develop and deliver an AI awareness and adoption support programme, implementing recommendations from the Welsh government's October 2025 review-awareness campaigns and enhanced digital support for SMEs.
- £1,000,000 to the Flexible Skills Programme for AI upskilling. Employers pay 25% of AI training costs and 50% for other courses, with access delivered across regions.
- £500,000 for tourism and events to equip up to 1,000 microbusinesses and SMEs with AI skills for digital marketing and content creation.
Why it matters
"AI is transforming the business sector, improving productivity and driving change," said Rebecca Evans, cabinet secretary for economy, energy and planning. She added that the programme will help SMEs across Wales use AI in "responsible, inclusive and ambitious ways," putting the AI plan for Wales into action so people and businesses start seeing real benefits.
Skills minister Jack Sargeant highlighted the potential of AI to accelerate business development and growth, and the government's commitment to helping SMEs build the skills they need for success.
What government teams should do now
- Coordinate delivery: Align regional business support teams with Business Wales to target priority sectors and regions with low AI uptake.
- Set clear selection criteria: Prioritise firms with defined use cases (e.g., procurement, logistics, finance, marketing) and measurable outcomes.
- Build a pipeline: Map awareness sessions → diagnostics → training → implementation support → follow-up.
- Embed ethics and safety: Require data protection impact assessments, bias testing, and clear model-risk ownership for funded use cases.
- Use Welsh language inclusively: Provide bilingual materials and support to ensure equal access.
- Track ROI from day one: Capture baseline metrics before training; measure productivity and process improvements after implementation.
Skills focus: practical and subsidised
The Flexible Skills Programme is the core engine here. Employers pay 25% for AI training and 50% for other courses. Delivery spans regions, easing access for smaller firms that can't spare full-time staff for learning.
For public sector teams, this is the moment to standardise high-quality providers, align curricula with local industry needs, and coordinate cohorts to compress time-to-impact.
Early SME use cases in Wales
Some firms are already moving. Swansea-based Something Different Wholesale uses AI to process data and provide market insight. Founder Jane Wallace-Jones said businesses that adopt AI and integrate it into their processes will gain a "significant competitive advantage," but many lack in-house expertise-making this fund a timely stepping stone for productivity and growth.
Tourism and events: targeted support
With £500,000 set aside, up to 1,000 microbusinesses and SMEs in tourism and events will receive AI skills for digital marketing and content creation. Expect quicker content turnaround, smarter audience targeting, and more consistent campaign performance across seasons.
Implementation checklist for officials
- Define priority use cases by sector (e.g., inventory forecasting, customer service, fraud detection, marketing analytics).
- Pre-approve a short list of training providers and tools that meet security, privacy, and accessibility standards.
- Create simple application flows and quick starts (diagnostics, templates, case studies).
- Offer light-touch technical coaching for first deployments to reduce pilots stalling.
- Set reporting rhythms: monthly adoption stats, quarterly outcomes, annual independent review.
Metrics that matter
- SMEs engaged, trained, and actively deploying AI use cases within 90 days.
- Training completion and satisfaction rates by region and sector.
- Reported time saved, error reduction, and revenue impact from deployed use cases.
- Share of projects using Welsh language resources and accessible formats.
- Cost-share uptake rates (25% AI / 50% other) and total private co-investment unlocked.
Risks to manage
- Data protection and vendor security: require DPIAs and clear data-processing terms.
- Bias and fairness: test models on representative data; document limitations.
- Vendor lock-in: encourage portable formats and open standards where feasible.
- Workforce impact: pair training with change management and role redesign.
Where to learn more
- Business Wales for programme updates and SME support.
- Welsh Government for policy context and related initiatives.
If your team needs structured course pathways to complement the government offer, see these resources: AI courses by job role and latest AI courses.
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