The government has launched two AI innovation competitions, offering UK SMEs the chance to draw funding from a £7m pot.

Announced on Friday, the competition encourages SMEs to develop AI solutions in areas such as agriculture, construction, transportation, logistics and the creative industries.

The first competition, backed by £5m, is a feasibility study for the use of AI to address business challenges. The second contest will see 100 projects able to apply for a share in a £2m funding pot.

The funds will be delivered by UK Research and Innovation (UKRI)’s Technology Missions Fund, in addition to Innovate UK’s Bridge AI programme.

“AI is the defining technology of our generation, and we are backing businesses and academia to work hand-in-glove to bring the next wave of brilliant AI innovations to life,” said Minister for AI and Intellectual Property Viscount Camrose.

The Viscount previously said the UK would not legislate AI in the “short term” in the hopes of fostering a greater environment for innovation.

“These competitions are further evidence of our commitment to pursuing a pro-innovation approach to AI, which sits at the heart of our plans for how we can safely and successfully manage this technology,” Viscount Camrose added.

“There can be no doubt that AI is a technology which demands a team effort, whether that’s in our approach to safety, or exploring how we can harness its incredible opportunities.”

The government-backed AI Safety Institute has since begun testing various AI models to assess the scope of the risks of the technology. However, the institute has faced difficulties gaining access to AI systems from some Big Tech companies, according to Politico.

Separately, the UK competition regulator has begun examining the Big Tech AI partnerships from firms like Microsoft and Amazon.