Frontier AI: SME Champions, Phase 1

Innovate UK, part of UK Research and Innovation (UKRI), will invest up to £3.1 million on Frontier AI. This is subject to a sufficient number of high quality applications being received. The aim of this competition is to is to advance the development of state of the art artificial intelligence (AI) and machine learning (ML) in the UK. We will support UK SMEs to validate the technical feasibility of ambitious AI, and ML innovations that could deliver step change improvements or enable new products, services and platforms. For this competition, Frontier AI refers to AI and ML systems that deliver state of the art performance against benchmarks or provide genuinely new to the world capabilities. The advance must be attributable to innovation in one or more of: • model or system architecture • training methodology • core learning algorithms • core control algorithms This competition is Phase 1 of a three-phase funding pipeline designed to support the next generation of UK AI Champions, from early technical validation through to scale-up. Only successful Phase 1 applicants will be invited to apply to Phase 2. We are seeking ambitious AI and ML innovations based on strong scientific evidence and engineering breakthroughs, with the potential to become scalable products or services that will create new market opportunities. Phase 1 projects will focus on de-risking technical feasibility and generating robust evidence that the core approach can work in practice. Progression to Phase 2 will depend on Business Case approvals, Phase 1 outcomes and the launch of a separate Phase 2 competition. Funding for Phase 2 and Phase 3 of this opportunity is subject to business case approval by UKRI. Your project must demonstrate the technical feasibility of a Frontier AI innovation and generate evidence to support future development, scaling and commercialisation. At the end of the project, you will be required to submit a technical whitepaper summarising: • technical progress and outcomes: concise description of what was built and learned in Phase 1 • evidence and validation: quantified results against pre-defined success criteria, test conditions and a clear statement of remaining technical risks and limitations • innovation defensibility plan • phase 2 readiness and delivery plan: clear and explicit translation of Phase 1 evidence into Phase 2 objectives • business scaling assumptions and investability Phase 2 of this series will enable projects to develop demonstrators of the innovation you developed in Phase 1 and we would expect you to advance the technology readiness level (TRL) by 2 points in TRL scale. For Phase 2 projects will be able to submit applications for projects for up to 12 month long with costs of up to £1 million. In applying to this competition, you are entering into a competitive process. This competition has a funding limit, so we may not be able to fund all the proposed projects. It may be the case that your project scores highly but we are still unable to fund it. Our experience from similar competitions suggests that you could have 2% chance of success. We consider a range of factors when determining whether to provide funding to applicants. This includes an assessment of prior conduct, such as any outstanding payments owed to Innovate UK or UKRI. Such factors may influence the funding decision, potentially resulting in a refusal of funding or an award subject to additional scrutiny. We also reserve the right to adjust funding allocations for any of our competitions. This may be in response to changes in policy, portfolio funding considerations or broader government funding decisions. This competition closes at 11am UK time on the deadline stated in this Innovate UK competition brief . We cannot guarantee other government or third party sites will always show the correct competition information. Funding type Grant Project size Your project’s total eligible costs must be between £150,000 and £250,000. Accessibility and Inclusion We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments for people who have a disability or a long-term condition and face barriers applying to us. You can contact us at any time to ask for guidance. We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline. You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays). Your proposal The aim of this competition is to advance the development of state of the art artificial intelligence (AI) and machine learning (ML) in the UK. We will support UK SMEs to validate the technical feasibility of ambitious AI, and ML inno

Who can apply Your project Your project must: • have total costs between £150,000 and £250,000 • last between 1 and 3 months • start by 1 April 2027 • end by 30 June 2027 Any organisation receiving funding must carry out its project work in the UK, intend to exploit the results in the UK, and spend most of the funding within the UK. Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Grant Offer Letter has been approved by Innovate UK. Any delays within Project Setup may mean we need to delay your project start date. You must only include eligible project costs in your application. See our overview of eligible project costs . Lead organisation To work alone your organisation must be a UK registered micro, small or medium sized enterprise (SME). More information on the different types of organisation can be found in our Funding rules . Subcontractors Subcontractors are not allowed in this competition. Number of applications An SME can only submit on one application. Any further applications by the same organisation will be made ineligible. Sanctions This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions . For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups . Use of animals in research and innovation Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance. Applicants must ensure that all of the proposed work within projects, both in the UK and internationally, will comply with the UKRI guidance on the use of animals in research and innovation . Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made. Previous applications You cannot use a previously submitted application to apply for this competition. We will not award you funding if you have: • failed to exploit a previously funded project • an overdue independent accountant’s report • failed to comply with grant terms and conditions Innovate UK may withhold a grant payment at any time if you have any outstanding sums due to us in relation to other projects. Subsidy control (and State aid where applicable) This competition provides funding to enterprises using the Research, Development and Innovation Streamlined Subsidy Scheme. The Research, Development and Innovation Streamlined Scheme can be viewed on the subsidy database here: SC10780 . This is in line with the Subsidy Control Act 2022. Further information about the Subsidy requirements can be found within the Subsidy Control Act 2022 . Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage. EU State aid rules now only apply in limited circumstances. See the Windsor Framework to check if these rules apply to your organisation. In the ‘Project details’ section of your application you will be asked questions to indicate if State Aid or Subsidy applies to your organisation. Further Information If you are unsure about your obligations under the Subsidy Control Act 2022 or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations. You must not do anything which could cause a breach of Subsidy Control legislation applicable in the United Kingdom. This aims to regulate any advantage granted by a public sector body which threatens to, or distorts competition in the United Kingdom or any other country or countries. This award is classified as a Subsidy which does not form part of your Minimal Financial Assistance or de minimis allowance. Funding Up to £3.1 million has been allocated to fund innovation projects in this competition. This is subject to us receiving a sufficient number of high quality applications. Funding will be in the form of a grant. We reserve the right to adjust funding allocations for any of our competitions under exceptional circumstances, for example, in response to changes in policy, portfolio funding considerations, or broader government funding decisions. Under the Research, Development and Innovation Streamlined Route rules, no more than £3 million can be awarded in the form of a grant to any one enterprise in any one competition. If your organisation’s work on the pro

Before you start You must read the guidance on applying for a competition on the Innovation Funding Service before you start. Before submitting, it is the lead applicant’s responsibility to make sure: • that all the information provided in the application is correct • your proposal meets the eligibility and scope criteria • all sections of the application are marked as complete You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline. What we ask you The application is split into four sections: • Project details. • Application questions. • Finances. • Project Impact. Accessibility and Inclusion We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments for people who have a disability or a long-term condition and face barriers applying to us. You can contact us at any time to ask for guidance. We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline. You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays). 1. Project details This section provides background for your application and is not scored. Do not include any website addresses (URLs) in your answers. Application team Decide which people from your organisation will work with you on the project and invite those people to help complete the application. Application details Give your project’s title, start date and duration. Research category Select the type of research you will undertake. Project summary Describe your project briefly and be clear about what makes it innovative. We use this section to assign the right experts to assess your application. Your answer can be up to 400 words long. Public description Describe your project in detail and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This can happen before you start your project. Your answer can be up to 400 words long. Scope Describe how your project fits the scope of the competition. Your answer must sufficiently explain: • serviceable market and customers • background IP and route to defensibility • technical novelty and benchmarked validation • what new to the world or state of the art AI capability you will validate • one key uncertainty you will resolve during Phase 1 If your answer does not sufficiently address how your proposal meets the competition scope, or your project is not in scope, it will not be sent for assessment in line with our General Guidance section: What happens after you have submit