The boom in artificial intelligence has sparked a mass of new tech startups across the UK, with company registrations featuring ‘AI’ in their name rising 1,227% since 2020.
Data from specialist insurer Hiscox has been drawn from Companies House and filtered using Standard Industrial Classification (SIC) codes to focus on the tech sector.
It shows a sharp inflection point after the launch of ChatGPT in November 2022, as between that date and April 2025, registrations jumped 1,321%.
AI-themed tech companies are now being registered 13 times more frequently than five years ago at a compound annual growth rate of 67.7%.
If the trend continues, Hiscox predicts as many as 333 new AI companies could be registered in April 2026 alone.
London dominates the trend, with 1,689 AI-related tech firms registered between April 2020 and April 2025, more than 30 times the number in runner-up Manchester.
The capital alone accounts for nearly half of all registrations, but Manchester, Leeds and Glasgow have all posted triple-digit annual increases.
The Scotland-based business, however, has warned that the rapid adoption of AI also carries new risks, from incorrect outputs and flawed data training to potential liability issues for businesses.
“The surge in AI company registrations across cities like Manchester, Leeds, and Glasgow highlights just how quickly the AI sector is expanding beyond traditional hubs,” said Adam Atkins, head of technology at Hiscox.
“As more tech businesses adopt and innovate with AI, it’s vital they recognise the new risks that come with this growth.
“Our new PI cover is designed to help these companies navigate the evolving landscape with confidence, enabling them to focus on safe and responsible innovation.”
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