Bakers, farmers and road workers are to test artificial intelligence (AI) that could turbocharge productivity under a new multi-million fund.

The UK Government will invest £7m in AI projects that are aimed at helping small businesses “cut waste, move faster and be more productive”, technology secretary Peter Kyle has said.

A total of 120 projects across the country will receive a share of the funding to trial AI systems.

The fund forms part of the Labour government’s plan to unlock the potential of the cutting-edge technology in the UK, which is Europe’s top destination for AI businesses.

Earlier this week, Prime Minister Keir Starmer revealed his government’s plan for AI to “transform the lives of working people”.

The plan outlined a series of measures that will see a quick roll-out of AI across British society, including new AI growth zones that will speed up planning permission for AI infrastructure and facilitate their connection to the grid.

Kyle added: “The huge range of projects receiving funding today, from farmers and bakers to those tackling potholes on our roads and mould in residential properties, demonstrates the truly limitless benefits of AI that are there for the taking.

“And take them we will, with our 50-point AI Opportunities Plan, published yesterday, to unleash AI across the UK, delivering a decade of national renewal and firing up our Plan for Change.”

Projects will look into how AI could cut food waste by allowing bakeries to accurately predict sales, as well as how it could predict potholes before they form, allowing for cheaper road reparations.

Another project will also look into how the technology could help work out where mould is likely to grow in buildings, a health issue affecting a large proportion of housing north of the border.

The most recent Scottish House Conditions Survey by the Scottish Government revealed almost one in 10 households suffer from mould.

The funding forms part of the UK Research and Innovation (UKRI) Technology Missions Fund, with the support being delivered by the Innovate UK BridgeAI programme.

Launched in 2023, the BridgeAI programme was designed to help businesses in high growth potential sectors such as agriculture and construction, adopt the innovative technology.