Wales commits £2.1m to help SMEs adopt practical AI
The Welsh government has announced £2.1 million for three schemes to help SMEs, entrepreneurs, and micro businesses put AI to work in day-to-day operations. The package covers awareness, sector pilots, and workforce training to move beyond talk and into measurable delivery.
Where the funding goes
- £600,000 - Business Wales AI awareness and adoption support: A new programme informed by a recent review on improving SME productivity in Wales.
- £500,000 - Tourism and events adoption: Funding to increase AI use across the sector, including a project by Hartree Centre Cardiff Hub (HCCH) and Cardiff University's Digital Transformation Innovation Institute (DTII). Follow the Hartree Centre for updates.
- £1,000,000 - Flexible Skills Programme (FSP) for AI training: Focused on closing digital skills gaps and supporting inclusive growth. Employers contribute 25% of AI training costs and 50% for other FSP courses.
What this means for government teams
This is a chance to turn AI from pilot projects into routine practice across Welsh SMEs. It also puts delivery behind the AI Plan for Wales by pairing adoption support with co-funded training.
- Coordinate with Business Wales to signpost SMEs to the new AI programme and track uptake by region and sector.
- Work with tourism bodies to surface clear use cases and data access needs for HCCH/DTII projects.
- Prepare assurance for AI-enabled tools: data protection, transparency, bias testing, and security requirements.
- Use FSP co-funding in budget plans. Map roles that need AI skills now (ops, customer service, marketing, data) and set targets for completion.
Statements from ministers
Rebecca Evans, cabinet secretary for economy, energy and planning, said the funding builds on recent showcases at Wales Tech Week and the Wales Investment Summit. She highlighted AI's role in improving productivity and confirmed the programme will help SMEs across sectors adopt AI in responsible, inclusive ways-turning the AI Plan for Wales into practical action for people, communities, and businesses.
Skills minister Jack Sargeant said the government sees huge potential for AI to boost business development and growth. He added that the additional £1 million through FSP will close digital skills gaps and speed ethical, responsible adoption across Wales.
Next steps for departments, local authorities, and public bodies
- Watch for the Business Wales programme launch and guidance: Business Wales.
- Tourism and events organisations: prepare project ideas and data requirements; engage with HCCH/DTII as calls open.
- Set internal AI training plans with FSP co-investment (25% for AI courses, 50% for other FSP). Nominate team leads to track progress and outcomes.
- Gather quick-win case studies (cost saved, time saved, service quality improved) and share them across regional networks.
If you're mapping skills needs by role, this curated library can help you shortlist credible options fast: AI courses by job role.
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