Funding competition Feasibility studies for Artificial Intelligence solutions

UK registered businesses can apply for a share of up to £5 million in grant funding to deliver feasibility studies. These studies will be to develop innovative solutions using Artificial Intelligence (AI) to address business challenges and opportunities.

This competition is now closed.

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Competition sections

Description

Innovate UK, part of UK Research and Innovation, will invest up to £5 million in innovation projects.

Funding for this opportunity is subject to business case approval by the Department for Science Innovation and Technology (DSIT) and HM Treasury.

These will be to develop Artificial Intelligence (AI) and Machine Learning (ML) driven solutions that address a business challenge or opportunity in target industry sectors:

  • construction
  • transport, including logistics and warehousing
  • creative industries
  • agriculture and food processing

The aim of this competition is to support innovative projects prompted by a challenge to business in an area of operations that can drive improvements in business productivity.

This competition supports the Government’s goals in the National AI Strategy in the transition to an AI-enabled economy through wider AI adoption across sectors.

Your proposal must:

  • address a business challenge in construction, transport including logistics and warehousing, creative industries or agriculture and food processing
  • demonstrate an increase in business productivity

In applying to this competition, you are entering into a competitive process. This competition closes at 11am UK time on the deadline stated.

Funding type

Grant

Project size

Your project’s grant funding request must be between £25,000 and £50,000.

Who can apply

Your project

Your project must:

  • have a grant funding request between £25,000 and £50,000
  • start by 1 September 2023
  • end by 29 February 2024
  • last between 4 and 6 months
  • carry out its project work in the UK
  • intend to exploit the results from or in the UK

You must only include eligible project costs in your application.

Under current restrictions, this competition will not fund any procurement, commercial, business development or supply chain activity with any Russian and Belarusian entity as lead, partner or subcontractor. This includes any goods or services originating from a Russian and Belarusian source.

If your project’s grant funding request or duration falls outside of our eligibility criteria, you must provide justification by email to support@iuk.ukri.org at least 10 working days before the competition closes. We will decide whether to approve your request.

If you have not requested approval or your application has not been approved by us, you will be made ineligible. Your application will then not be sent for assessment.

You will be made ineligible if you exceed the Minimal Financial Assistance limit. You must submit a complete declaration as part of your application.

Lead organisation

To lead a project your organisation must:

More information on the different types of organisation can be found in our Funding rules.

Project team

To collaborate with the lead, your organisation must be a UK registered:

Your partner organisation must be invited into the Innovation Funding Service by you as the lead to collaborate on a project. Once accepted, your partner will be asked to login or to create an account and enter their own project costs and complete their own Project impact questions into the Innovation Funding Service.

To be an eligible collaboration, the lead and the other eligible organisation must apply for funding when entering their costs into the application.

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you could not use suppliers from the UK.

You must also provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you.

We expect all subcontractor costs to be justified and appropriate to the total eligible project costs. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

Number of applications

The lead SME can only be involved in one application.

If an SME is not leading any application, it can collaborate in up to two applications.

If you are successful in both applications you will be contacted and will need to justify you have the resources to deliver both projects.

An academic institution can collaborate on any number of applications.

Previous applications

You can use apreviously submitted application to apply for this competition.

We will not award you funding if you have:

Minimal Financial Assistance (and De minimis where applicable)

Grant funding in this competition is awarded as Minimal Financial assistance (MFA). This allows public bodies to award up to £315,000 to an enterprise in a 3-year rolling financial period.

In your application, you will be asked to declare previous funding received by you. This will form part of the financial checks ahead of Innovate UK making a formal grant offer.

To establish your eligibility, we need to check that our support added to the amount you have previously received does not exceed the limit of £315,000 in the ‘applicable period’.

The applicable period is made up of:

(a) the elapsed part of the current financial year, and

(b) the two financial years immediately preceding the current financial year.

You must include any funding which you have received during the applicable period under:

You do not need to include aid or subsidies which have been granted on a different basis, for example, an aid award granted under the General Block Exemption Regulation.

Further information about the Subsidy Control Act 2022 requirements can be found in the Subsidy Control Act 2022 (legislation.gov.uk)

EU Commission rules now only apply in limited circumstances. Please see our general guidance to check if these rules apply to your organisation.

Further information

If you are unsure about your obligations under the Subsidy Control Act 2022, you should take independent legal advice. We cannot advise on individual eligibility or your legal obligations.

Funding

We have allocated up to £5 million to fund innovation projects in this competition.

A project can request 100% funding for eligible project costs up to a maximum of £50,000 to be shared between all partners.

For more information on company sizes, please refer to the Company accounts guidance..

If you are applying for an award funded under European Commission Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.

Research participation

The research organisations undertaking non-economic activity as part of the project can share up to 50% of the total eligible project costs.

Of that 50% you could get funding for your eligible project costs of up to 80% of full economic costs (FEC) if you are a Je-S registered institution such as an academic.

Your proposal

The aim of this competition is to support innovative projects prompted by a challenge to business in an area of operations that can drive improvements in business productivity.

Your project must:

  • be a feasibility study to develop Artificial Intelligence (AI) driven solutions
  • address a business challenge in construction, transport including logistics and warehousing, creative industries or agriculture and food processing
  • demonstrate an increase in business productivity
  • be a collaboration between an organisation seeking to adopt AI to address a business challenge or opportunity, with an organisation that can develop AI to help address this opportunity

Portfolio approach

We want to fund a variety of projects across different technologies, markets, technological maturities. We call this a portfolio approach

Specific themes

Your project can focus on one or more of the following:

  • data driven decision making
  • automation of administrative tasks
  • project management optimization
  • supply chain optimisation and forecast models
  • waste management
  • intellectual property (IP) management
  • design


Projects we will not fund

We are not funding projects:

  • in marketing and advertising
  • that do not demonstrate increase in business productivity

We cannot fund projects that:

  • involve primary production in fishery and aquaculture
  • involve primary production in agriculture
  • have activities relating to the purchase of road freight transport
  • are not allowed under De minimis regulation restrictions
  • are not eligible to receive Minimal Financial Assistance
  • are dependent on export performance, for example giving an award to a baker on the condition that they export a certain quantity of bread to another country
  • are dependent on domestic inputs usage, for example if we give an award to a baker on the condition that they use 50% UK flour in their product

28 March 2023
Competition opens
29 March 2023
Online briefing event: register to attend
31 May 2023 11:00am
Competition closes
29 June 2023 11:36am
Applicants notified

Before you start

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

Before submitting, it is the lead applicant’s responsibility to make sure:

  • that all the information provided in the application is correct
  • your proposal meets the eligibility and scope criteria
  • all sections of the application are marked as complete
  • that all partners have completed all assigned sections and accepted the terms and conditions (T&Cs)

You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.

What we ask you

The application is split into 4 sections:

  1. Project details.
  2. Application questions.
  3. Finances.
  4. Supporting Information which includes the Project Impact questions

Accessibility and inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes providing support, in the form of reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us. Read more on how we are making our application process more accessible and inclusive for everyone.

You must contact us as early as possible in the application process. We recommend contacting us at least 15 working days before the competition closing date to ensure we can provide you with the most suitable support possible.

You can contact us by emailing support@iuk.ukri.org or calling 0300 321 4357. Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

1. Project details

This section provides background for your application and is not scored.

Application team

Decide which organisations will work with you on your project and invite people from those organisations to help complete the application

Application details

Give your project’s title, start date and duration.

Project summary

Describe your project briefly and be clear about what makes it innovative. We use this section to assign experts to assess your application.

Your answer can be up to 400 words long.

Public description

Describe your project in detail, and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This could happen before you start your project.

Your answer can be up to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in scope it will not be sent for assessment. We will tell you the reason why.

Your answer can be up to 400 words long.

2. Application questions

The assessors will score all your answers apart from questions 1 and 2. You will receive feedback for each scored question. Find out more about how our assessors assess.

You must answer all questions. Your answer to each question can be up to 400 words long. Do not include any website addresses (URLs) in your answers.

Question 1. Applicant location (not scored)

You must state the name and full registered address of your organisation and your partner or any subcontractors working on your project.

We are collecting this information to understand the geographical location of all applicants.

Question 2. Minimal Financial Assistance declaration (not scored)

The lead SME and your partner SME, if applicable, must download the declaration template. Each SME must complete the template, declaring any funding received under Minimal Financial Assistance (previously referred to as Special Drawing Rights) or De minimis awards, (from any source of public funding) in the applicable period.

Academic partners are not required to complete this declaration.

Each SME must complete all the fields on the form before uploading.

Each SME must upload their completed declaration as an appendix. It must be a PDF and no larger than 10 MB. The font must be legible at 100% zoom.

After uploading write ‘declaration attached’ in the question text box.

You and your partners must keep all documentation relating to Minimal Financial Assistance (previously referred to as Special Drawing Rights) and other De minimis awards for a period of 6 years and be prepared to release it to any public funding body which requests it.

Question 3. Need or challenge

What is the business need, technological challenge, or market opportunity behind your innovation?

Describe or explain:

  • the main motivation for the project
  • the business need, technological challenge or market opportunity
  • the nearest current state-of-the-art, including those near market or in development, and its limitations
  • any work you have already done to respond to this need, for example if the project focuses on developing an existing capability or building a new one
  • the wider economic, social, environmental, cultural or political challenges which are influential in creating the opportunity, such as incoming regulations, using our Horizons tool if appropriate

Question 4. Approach and innovation

What approach will you take and where will the focus of the innovation be?

Explain:

  • how you will respond to the need, challenge or opportunity identified
  • how you will improve on the nearest current state-of-the-art identified
  • whether the innovation will focus on the application of existing technologies in new areas, the development of new technologies for existing areas or a totally disruptive approach
  • the freedom you have to operate
  • how this project fits with your current product, service lines or offerings
  • how it will make you more competitive
  • the nature of the outputs you expect from the project (for example report, demonstrator, know-how, new process, product or service design) and how these will help you to target the need, challenge or opportunity identified

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF and can be up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 5. Team and resources

Who is in the project team and what are their roles?

Explain:

  • the roles, skills and experience of all members of the project team that are relevant to the approach you will be taking
  • the resources, equipment and facilities needed for the project and how you will access them
  • the details of any vital external parties, including sub-contractors, who you will need to work with to successfully carry out the project
  • (if your project is collaborative) the current relationships between project partners and how these will change as a result of the project
  • any roles you will need to recruit

You can submit one appendix with a short summary of the main people working on the project to support your answer. It must be a PDF and can be up to 4 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 6. Market awareness

What does the market you are targeting look like?

Describe:

  • the target markets for the project outcomes and any other potential markets (domestic, international or both)
  • the size of the target markets for the project outcomes, backed up by references where available
  • the structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframes
  • the target markets’ main supply or value chains and business models, and any barriers to entry that exist
  • the current UK position in targeting these markets
  • the size and main features of any other markets not already listed

If your project is highly innovative, where the market may be unexplored, describe or explain:

  • what the market’s size might to be
  • how your project will try to explore the market’s potential

Question 7. Outcomes and route to market

How are you going to grow your business and increase your productivity into the long term as a result of the project?

Explain:

  • your current position in the markets and supply or value chains outlined, and whether you will be extending or establishing your market position
  • your target customers or end users, and the value to them, for example, why they would use or buy your product
  • your route to market
  • how you are going to profit from the innovation, including increased revenues or cost reduction
  • how the innovation will affect your productivity and growth, in both the short and the long term
  • how you will protect and exploit the outputs of the project, for example through know-how, patenting, designs or changes to your business model
  • your strategy for targeting the other markets you have identified during or after the project

If there is any research organisation activity in the project, describe:

  • your plans to spread the project’s research outputs over a reasonable timescale
  • how you expect to use the results generated from the project in further research activities

Question 8. Wider impacts

What impact might this project have outside the project team?

Describe, and where possible, measure the economic benefits from the project such as productivity increases and import substitution, to:

  • external parties
  • customers
  • others in the supply chain
  • broader industry
  • the UK economy

Describe, and where possible, measure:

  • any expected impact on government priorities
  • any expected environmental impacts, either positive or negative
  • any expected regional impacts of the project

Describe any expected social impacts, either positive or negative on, for example:

  • quality of life
  • social inclusion or exclusion
  • jobs, such as safeguarding, creating, changing or displacing them
  • education
  • public empowerment
  • health and safety
  • regulations
  • diversity

Question 9. Project management

How will you manage the project effectively?

Explain:

  • the main work packages of the project, indicating the lead partner assigned to each and the total cost of each one
  • your approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcome
  • the management reporting lines
  • your project plan in enough detail to identify any links or dependencies between work packages or milestones

You must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF and can be up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 10. Risks

What are the main risks for this project?

Describe:

  • the main risks and uncertainties of the project, including the technical, commercial, managerial and environmental risks
  • how you will mitigate these risks
  • any project inputs that are critical to completion, such as resources, expertise, data sets
  • any output likely to be subject to regulatory requirements, certification, ethical issues and so on, and how you will manage this

You must submit a risk register as an appendix to support your answer. It must be a PDF and can be up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 11. Added value

How will this public funding help you to accelerate or enhance your approach to developing your project towards commercialisation? What impact would this award have on the organisations involved?

Explain:

  • what advantages public funding would offer your project, for example, appeal to investors, more partners, reduced risk or a faster route to market (this list is not exhaustive)
  • the likely impact of the project outcomes on the organisations involved
  • what other routes of investment you have already approached
  • what your project would look like without public funding
  • how this project would change the R&D activities of all the organisations involved

Question 12. Costs and value for money

How much will the project cost and how does it represent value for money for the team and the taxpayer?

In terms of the project goals, explain:

  • the total eligible project costs
  • the grant you are requesting
  • how each partner will finance their contributions to the project
  • how this project represents value for money for you and the taxpayer
  • how it compares to what you would spend your money on otherwise
  • the balance of costs and grant across the project partners
  • any subcontractor costs and why they are critical to the project

3. Finances

Each organisation in your project must complete their own project costs, organisation details and funding details in the application. Academic institutions must complete and upload a Je-S form.

For full details on what costs you can claim see our project costs guidance.

4. Project Impact

This section is not scored but will provide background to your project. Each partner must complete the Project Impact questions before being able to submit the application.

More information can be found in our Project Impact guidance.

Background and further information

Organisations and their teams are highly encouraged to review and follow the Machine Learning Security Principles provided by NCSC here.

Organisations and their teams are highly encouraged to review and follow the National Cyber Strategy provided by DCMS here.
Where applicable applicants should demonstrate alignment to the CPNI Security-Minded approach to Information Management available here.
Further guidance and support for Trusted Research is available from UKRI here.

Data sharing

This competition is operated by Innovate UK.

Innovate UK is directly accountable to you for its holding and processing of your information, including any personal data and confidential information. Data is held in accordance with our own policies. Accordingly, Innovate UK will be data controllers for personal data submitted during the application. Innovate UK’s Privacy Policy is accessible here.

Innovate UK complies with the requirements of GDPR, and is committed to upholding the data protection principles, and protecting your information. The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Find a project partner

If you want help to find a project partner, contact Innovate UK KTN.

Support for SMEs from Innovate UK EDGE

If you receive an award, you will be contacted about working with an innovation and growth specialist at Innovate UK EDGE. This service forms part of our funded offer to you.

These specialists focus on growing innovative businesses and ensuring that projects contribute to their growth. Working one-to-one, they can help you to identify your best strategy and harness world-class resources to grow and achieve scale.

We encourage you to engage with EDGE, delivered by a knowledgeable and objective specialist near you.

Next steps

If you are successful with this application, you will be asked to set up your project.

You must follow the unique link embedded in your email notification. This takes you to your IFS Set Up portal, the tool that Innovate UK uses to gather necessary information before we can allow your project to begin.

You will need to provide:

  • the name and contact details of your project manager and project finance lead
  • a redacted copy of your bank details
  • a collaboration agreement
  • an exploitation plan

In order to process your claims, we need to make sure that the bank details you give to us relate to a UK high street bank that is regulated by the Prudential Regulation Authority (PRA). The account must have a BACS clearing facility and be in the same company name as your application.

If you have any doubts that your bank account will not meet Innovate UK's funding criteria, you can use the sort code checker. If you input the sort code and find a tick next to the ‘BACS Direct Credit payments can be sent to this sort code’, this will give you an indication that the bank account you hold is acceptable.

Finance checks

We will carry out checks to make sure you are an established company with access to the funds necessary to complete the project.

You must check your IFS portal regularly and respond to any requests we have sent for additional information to avoid any delays.

Failure to complete project setup may result in your grant offer being withdrawn.

Your Grant offer Letter (GOL)

Once you have successfully completed project setup, we will issue your GOL.

The GOL will be made available on your IFS portal. You will need to sign and upload this before you start your project.

Your GOL will show the start date for your project, do not start your project before this date. Any costs incurred before your start date cannot be claimed as part of your grant.

If your application is unsuccessful

If you are unsuccessful with your application this time, you can view feedback from the assessors. This will be available to you on your IFS portal following notification.

Your application may score well and receive positive feedback from the assessors but be unsuccessful. This can be because your average score has not reached the funding threshold for this competition or your project has not been selected under the portfolio approach if applied to this competition.

Contact us

If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.
Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).


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