How a £2.1M Welsh Government AI Support Package Could Transform Welsh Businesses in 2026

Maryna Farrell
Jan 12
3 min read

In January 2026, the Welsh Government unveiled a significant new £2.1 million support package designed to help small and medium-sized enterprises (SMEs) across Wales adopt and leverage artificial intelligence. This initiative aims to boost productivity, innovation and competitiveness - a major win for Welsh firms looking to stay ahead in an increasingly digital economy.

What’s in the £2.1m AI Support Package?

The funding is split across three strategic strands, each targeting a key area of business development:

AI Awareness and Adoption Programme (£600,000)

A portion of the funding - £600,000 - has been allocated to Business Wales to deliver an AI awareness and adoption programme. It will help businesses understand the potential of AI, implement practical AI tools and adopt responsible practices that are aligned with productivity and ethical standards.

Welsh Business Support for Tourism and Events Sector (£500,000)

Another £500,000 is earmarked to specifically enhance the use of AI in the tourism and events sectors. This includes collaboration with the Hartree Centre Cardiff Hub (HCCH) and Cardiff University’s Digital Transformation Innovation Institute (DTII) via the AI Pollination Project. The project will support tourism and events businesses with digital marketing and content creation skills - helping up to 1,000 enterprises adopt AI in practical ways that drive engagement and reach.

AI Upskilling Through the Flexible Skills Programme (£1 million)

The largest slice of the funding - £1 million - will go toward workforce training through the Flexible Skills Programme. This initiative aims to bridge digital skills gaps and make AI training accessible across Wales. Crucially, employers will contribute only 25 % of AI training costs, and 50 % for other FSP courses, encouraging broader participation from small firms.

So, Why Does This Matter for Welsh Businesses?

This investment reflects a broader national trend within Wales toward technology and digital transformation:

Industry sentiment is turning strongly toward AI. Recent research suggests that 40 % of Welsh businesses plan to prioritise investment in AI in 2026, a notable increase from previous years, highlighting how seriously firms are taking this technology as a growth driver.
Adoption is already underway. Surveys show that a majority of Welsh companies see AI as a key contributor to local economic performance, with many reporting productivity and profitability gains where AI has already been implemented.

By tackling awareness, sector-specific adoption, and skill development, this initiative helps Welsh SMEs overcome common barriers to AI implementation, such as a lack of in-house expertise or training capacity.

Voices from the Welsh Business Community

One local success story highlighted by the Welsh Government is Something Different Wholesale, a Swansea-based firm that is already integrating AI into data processes, automation and customer service workflows, boosting operational efficiency and scaling its global reach.

What This Means for Your Business

For businesses across Wales - from startups to established SMEs - the AI funding package offers a chance to:

✔ Get practical support and training for adopting AI

✔ Gain competitive edge through automation and smarter data insights

✔ Build digital skills across teams without prohibitive costs

✔ Tap into sector-specific opportunities in tourism and events

As AI continues to reshape how companies operate, this funding initiative makes the technology more accessible - helping Welsh businesses not just keep pace, but lead in 2026 and beyond.

We'd love to know, what's YOUR thoughts on using AI for your business?

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