“What grants are available for small businesses?” is one of the most common UK funding searches — so here’s the honest, practical answer for AI in 2026, cited to official sources. (dgm implements osFoundry as an independent partner.)
The honest headline
There’s no UK grant that simply buys AI software for a small business. The scheme that discounted software, Help to Grow: Digital, closed in February 2023. What exists instead is a patchwork of match-funded adoption grants, R&D tax relief, loans, and free advice — and which apply to you depends on your sector and nation.
What’s available, by sector and nation
| Route | Who | Headline |
|---|---|---|
| Made Smarter | SME manufacturers (England, regional) | Up to £20k at 50% |
| Invest NI DTFF | NI small/micro | £5k–£20k at up to 70% |
| SMARTCymru | Welsh businesses | R&D matching up to 50% |
| Techscaler MVP | Scottish startups | £5k–£50k |
| BridgeAI | Agri-food, construction, creative, logistics | Adoption support + competitions |
UK-wide routes (any small business)
- R&D tax relief (merged scheme) — for genuine development; loss-making R&D-intensive SMEs can claim ERIS (~£27 per £100).
- British Business Bank finance — Start Up Loans (£500–£25,000) and the Growth Guarantee Scheme.
- Free advice — Growth Hubs and Innovate UK Business Growth.
If none of the grants fit you
Many small businesses won’t be a manufacturer or in a BridgeAI sector — and that’s fine. The realistic plan is to self-fund a small pilot (usage-priced platforms make this affordable), claim R&D relief if you’re genuinely developing, and use free advice to de-risk it. A grant is a bonus, not a prerequisite.
Where osFoundry and dgm fit
dgm scopes an affordable, well-defined AI project and implements it on osFoundry — usage-priced with no per-seat fees, 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). Low up-front cost is exactly what makes “start small, prove it, then offset with relief or a grant” work for a small business.
dgm is an independent integration partner with zero integrations so far, and not a grant-writing service. To scope an affordable AI project, book a consultation with dgm. General information, not financial advice.