The artificial intelligence boom has sparked many new high-tech startups across the UK, bringing in the registration of companies featuring “AI,” which has risen 1,227% since 2020.
Data from the expert insurance company Hiscox is drawn from Company House and filtered using standard Industrial Classification (SIC) codes, focusing on the technical sector.
After ChatGPT was launched in November 2022, it shows a sharp inflection point as registrations increased by 1,321% between that date and April 2025.
AI-themed tech companies are registered 13 times more frequently than they were five years ago, with a combined annual growth rate of 67.7%.
If the trend continues, Hiscox predicts that it will be able to register as many as 333 new AI companies in April 2026 alone.
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London dominates this trend, with 1,689 AI-related high-tech companies registered between April 2020 and April 2025, more than 30 times the runner-up Manchester.
Capital alone accounts for almost half of all registrations, while Manchester, Leeds and Glasgow all have triple digit annual increases.
However, the Scotland-based business warns that rapid adoption of AI also poses new risks, ranging from incorrect production and defective data training to issues of potential liability for the company.
“The surge in AI company registrations between cities such as Manchester, Leeds and Glasgow highlights how quickly the AI sector is expanding beyond traditional hubs.”
“As more tech companies adopt and innovate AI, it is important to recognize the new risks associated with this growth.
“Our new PI covers are designed to allow these companies to navigate the evolving landscape with confidence, allowing them to focus on safe and responsible innovation.”
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