New data from Tech Nation and Dealroom found that VC investment in UK AI companies hit a record in Q2 2022 and is on track to at least equal last year. Around 2,009 AI companies are based in the UK, the AI capital of Europe. Last year saw a record investment of £6.6 billion flow into UK AI companies. In 2022 so far, £3.2 billion has been invested. Tech Nation notes that investment into AI firms is historically "loaded towards the end of the calendar year" and is on track to "at least equal" last year. A record-setting Q2 was achieved in 2022 with £746.93 million invested, which could be a good sign for the rest of the year.

John Buyers, partner and head of Artificial Intelligence at Osborne Clarke shared his views with Business Leader regarding the future of AI in the UK. The EU Commission is proposing a whole new regulatory framework and infrastructure for developers and providers of Artificial Intelligence (AI) systems. This includes conformity assessments, labelling obligations, a new EU-level body, new national enforcement roles and another batch of extremely heavy penalties for non-compliance, potentially even higher than GDPR fines in some areas. This legislation will have a global impact on the AI sector since it will create new regulatory barriers for supplying or developing AI systems for EU customers. This new proposal follows the Data Governance Act published at the end of 2020 which similarly envisages a new regulatory framework for the EU data ecosystem.

In an effort to help drive digital innovation in the UK, Cisco has announced a $100m investment in the country's growing AI scene. The networking giant will partner with University College London (UCL) to open one of the world's largest research centres for AI which will house over 200 UCL academics and researchers. The new centre will also aid in developing the UK's AI talent pool. Prime Minister Theresa May and digital secretary Jeremy Wright have both backed Cisco's initiative which will operate alongside the government's own industrial strategy. Cisco's chairman and chief executive, Chuck Robbins explained the firm's reasoning behind its investment in the UK's AI sector, saying: "We believe that the UK's expertise in AI and its commitment to making sure future innovators have the right digital skills will help ensure the nation's citizens are well-positioned to capture the opportunity ahead."