Welsh businesses have their own innovation funding alongside UK-wide schemes — and “Welsh government grants” is a common search. Here’s a 2026 guide for AI and innovation funding in Wales, cited to Business Wales. (dgm implements osFoundry as an independent partner.)

SMARTCymru

SMARTCymru is the Welsh Government’s discretionary research, development and innovation grant programme. It offers R&D matching funds covering up to 50% of eligible prototype and commercialisation spend, and is open to businesses of all sizes, social enterprises, knowledge institutions and the public sector.

One published summary cites a £20,000 ceiling for certain support, but SMARTCymru historically funds larger collaborative R&D too — tiers and ceilings vary by strand, so confirm the current terms for your project.

Business Wales and the Flexible Skills Programme

Business Wales is the Welsh Government’s business-support gateway — the place to find grants and signposting. It also runs the Flexible Skills Programme, which part-funds workforce upskilling in areas including AI, data analytics and cyber. For a Welsh business adopting AI, that’s a useful complement: fund the development through SMARTCymru or R&D relief, and the skills through Flexible Skills.

A Welsh KTP advantage

Worth highlighting: while most UK SMEs are funded at up to ~67% on a Knowledge Transfer Partnership, eligible Welsh SMEs can be funded at up to 75%. That makes a KTP with a Welsh university an especially attractive route for building genuine AI/data capability.

UK-wide routes also apply

Welsh businesses also have access to R&D tax relief (the merged scheme + ERIS), BridgeAI adoption support, and British Business Bank finance.

Where osFoundry and dgm fit

These routes fund or support a project that still needs building. dgm scopes and implements AI projects on osFoundry: usage-priced, bring-your-own-key, and self-hostable in your own cloud or an EU region for UK data-sensitive work (osFoundry publishes US/EU/JP regions, not a UK one).

dgm is an independent integration partner with zero integrations so far, and not a grant-writing service. The application goes through Business Wales or the relevant UK body. To scope a fundable AI project, book a consultation with dgm. General information; confirm current SMARTCymru terms with Business Wales.