The UK government will support AI projects designed to improve the quality of public services through a new £32 million pot, after abandoning a £1.3 billion investment intended to boost start-ups and the development of a supercomputer.

The government stated the fresh funding will go to local AI companies working to enhance public services and infrastructure, such as improving the efficiency of prescription deliveries, reducing time spent on railway replacements and ensuring a safe work environment at construction sites.

A total of 98 projects are set to receive funding, which the government hopes will benefit more than 200 businesses and research groups.

Among the participants is energy and engineering consulting company V-Lab from North Yorkshire, which is developing AI software for work safety training.

Cambridge-based Monumo is also among selected innovators, with the company exploring the use of 3D generative AI tools to improve designs for motors in electric vehicles.

The government claimed the funding “will specifically support solutions in high growth industries, ensuring AI is at the heart of driving forward greater productivity and efficiency across key areas of the economy.”

Last week, the UK abandoned a total of £1.3 billion investment proposed by the Conservative Party.

The package involved an £800 million pot to finance the University of Edinburgh’s development of a supercomputer and a £500 million funding for AI startups, though parts of the latter funding had already been distributed, The Guardian reported.

At the time the authorities told the outlet it had to take “difficult and necessary spending decisions across all departments in the face of billions of pounds of unfunded commitments”.