The UK is currently leading the European pack in AI investment, attracting billions in venture capital thanks to its vibrant startup scene and appeal to global investors.
However, a stark skills shortage threatens to derail this momentum, with nearly three-quarters of the population lacking any AI training or education.
This is according to a new research note by KPMG which shows the country topped Europe for AI-related investment in 2025, securing more than £16 billion across nearly 1,900 deals.
This strong performance, despite a shaky start to the year, came amid surging global interest in AI, with the UK’s innovative ecosystem proving a major draw for investors.
KPMG’s data shows that the nation’s strength in AI is a primary reason international backers continue targeting British start-ups. The sector is evolving rapidly, with growing numbers of companies disrupting industries and daily life through cutting-edge solutions. Universities are playing a pivotal role too, driving research, talent pipelines, and the commercialisation of next-gen AI technologies.
A big skills gap
However, KPMG warned that this success is not a given. Joint research conducted by the group and the University of Melbourne reveals that 73% of people in the UK have received no AI training or education whatsoever. This widespread gap in skills could undermine the very foundation attracting venture capital, it said.
“It’s no surprise that the dominance of Artificial Intelligence (AI) looks set to continue but if we don’t bridge the AI skills gap, the UK is at risk of losing vital venture capital investment,” said Nicole Lowe, KPMG’s UK Head of Emerging Giants,
She added that while the strong finish to 2025 could spark an even bigger boom in 2026, fueled by ongoing AI enthusiasm, the country must act decisively.
We now need to do more to adopt AI more widely to ensure everyone has the necessary skills for the UK to become a powerhouse of innovation in this field.”
Lowe called for collaboration across business, government, educators, and investors to recognise the talent challenge and accelerate progress. Initiatives like the Mayor of London’s task force offering free AI training were cited as positive examples that, if expanded, could help position the UK as a global leader in tech innovation while keeping it irresistible to investors.
Without rapid upskilling and broader AI adoption in workplaces and everyday life, the UK risks squandering its hard-won lead in the global AI race. As 2026 unfolds, bridging this divide could be the difference between sustaining an investment surge and watching opportunities flow elsewhere, she warned.
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