AI in UK healthcare: statistics, policies, and key challenges
Adopting artificial intelligence in healthcare brings a wide range of challenges, from regulatory unpreparedness and data security concerns to the practical work of training staff and integrating AI tools across hospitals, clinics, laboratories, and research centres. Every organisation feels the pressure to modernise, yet many still struggle to create an environment where AI can meaningfully support clinical teams rather than add friction.
As an AI-first development partner deeply involved in healthcare innovation, Ventions takes a closer look at the current state of AI in UK healthcare to assess how ready the system is for meaningful adoption. You’ll gain the latest insights on the topic and lay the groundwork for the operational peace of mind that comes from choosing the right approach early on.
About Vention
At Vention, decades of engineering experience meet a long-standing commitment to building technology for healthcare. We’ve worked in the sector since our early days, and it remains one of our core industries. That experience shapes how we help UK organisations build secure, scalable digital products that meet regulatory requirements.
Today, Vention brings its deep, hands-on AI expertise to help healthcare providers move from experimentation to real-world impact. From telehealth applications and medical imaging systems to EHR platforms and digital pharmacy solutions, we develop bespoke healthcare solutions powered by advanced AI capabilities, giving organisations confidence in every line of code.
years in healthcare software development
delivered healthtech projects
in funding raised by our healthcare clients
Helping deliver software systems compliant with UK regulations
ISO 27001-certified to ensure the safety of our clients’ data
Internal AI Centre of Excellence providing the latest insights and innovations to strengthen every healthcare project
A general overview of the AI market size in the UK
The United Kingdom ranks third globally for AI market valuation, following the United States and China. The valuation of the UK AI sector is estimated at £72.3 billion in 2025. The UK AI sector is larger than the corresponding sectors of all other European countries.
AI adoption rate in the UK across all industries, %
Q3’23
Q4’23
Q1’24
Q2’24
Q3’24
Q4’24
Q1’25
Q2’25
Q3’25
The number of AI companies has risen sharply from 3,713 in 2023 to 5,862 in 2024, an increase of 58%. The revenue has grown too: up 68% to £23.9 billion in 2024.
Sources: [1], [2], [3], [54]
AI uptake across sectors in the UK
In 2025, the UK healthcare industry not only recorded one of the highest adoption rates at 44% (second only to Information & Communication and Education), but also posted the strongest growth between 2023 and 2025, at 29%.
A deep dive into AI in UK healthcare
The valuation of the UK AI healthcare market reached £249.6 million in 2024. Forecasts indicate that the UK market of AI in healthcare will reach £1.95 billion by 2033. The projected compound annual growth rate of the AI healthcare market in the UK is 25.37%.
Fundraising for AI companies in the UK healthcare
By Q2 2025, UK AI startups had raised £1.79 billion, accounting for 30% of all UK venture capital raised this year. Leading areas of UK health AI investment in 2025 include AI drug discovery, metabolic health, neurology, and synthetic biology.
Sources: [4], [5]
London leads UK healthcare AI fundraising
Who regulates AI in UK healthcare?
AI in healthcare spans several regulatory domains in the United Kingdom, which means multiple bodies are directly involved in oversight.
Sources: [7], [8], [9]
MHRA (Medicines and Healthcare products Regulatory Agency)
The primary regulator for medical devices, including software as a medical device, and now, AI as a medical device (AIaMD).
NICE (National Institute for Health and Care Excellence)
NICE evaluates, guides, and oversees the adoption of AI tools in clinical practice. In 2022, NICE updated its evidence standards framework for digital health technologies to include requirements for AI and data-driven systems with adaptive algorithms.
CQC (Care Quality Commission)
CQC steps in when AI systems become a part of regulated care services. While the CQC is still shaping its approach to AI, it has already issued guidance (GP Mythbuster 109: Use of artificial intelligence (AI) in GP services) outlining what inspectors will review when GP practices deploy AI.
Government initiatives and policies for AI in healthcare in the UK
The United Kingdom is taking an active role in shaping the safe, responsible, and sustainable adoption of AI in healthcare. UK regulators are developing guidance, updating standards, and refining oversight to manage the rapid growth of AI-enabled technologies in clinical and operational settings.
AI and Digital Regulations Service for health and social care
Regulators in the United Kingdom each maintain their own frameworks and guidance, which can make it difficult for organisations to navigate the requirements for AI in health and social care.
To simplify the process, the UK government created the AI and Digital Regulations Service. The service was commissioned by NHS England and developed in collaboration with NICE, MHRA, HRA, and CQC. The AI and Digital Regulations Service serves as a central pathway, outlining the requirements for AI technology developers and adopters, highlighting relevant standards, and providing regular regulatory updates.
Source: [10]
Software and AI as a Medical Device Change Programme
Launched by the MHRA, the programme sets out clear regulatory requirements for the development of software and AI tools for healthcare, with patient safety at its core. It addresses the unique challenges of creating and implementing SaMD and AI as Medical Devices, while ensuring that the UK is recognised globally as a home for innovation in this field.
Source: [11]
NHS AI Lab
Launched in 2019, the NHS AI Lab plays a pivotal role in supporting the safe and effective adoption of AI in healthcare. The programme coordinates the development, testing, and deployment of AI across the NHS, helping advance innovation and shape future strategies and frameworks. Through the programme’s operation, the government has also gained a deeper understanding of the challenges involved in widespread AI implementation and adoption, including technical and regulatory barriers as well as workforce readiness.
Sources: [12], [13]
AI Airlock
Traditional medical device and software regulations were not designed with AI in mind. To address this, the MHRA and the NHS AI Lab launched the AI Airlock in 2024, a regulatory sandbox for AI as a Medical Device (AIaMD) products. The Airlock enables companies to collaborate directly with regulators, trial AI health solutions in a supervised, safe-to-fail environment, and clarify compliance pathways.
The first pilot phase ran until April 2025 and included four projects:
- Radiology report generation (Philips)
- AI performance monitoring (Newton’s Tree Federated AI Monitoring Service)
- Oncology pathway support (OncoFlow)
- RAG-based clinical guidance agent (Automedica)
The pilot proved successful enough to warrant a second phase for 2025 – 2026. Its findings are already influencing regulatory thinking at the MHRA and across UK bodies, shaping future rules, guidance, and oversight mechanisms for AIaMD.
Source: [14]
HealthAI Global Regulatory Network
In June 2025, the United Kingdom became the first nation to join the HealthAI Global Regulatory Network. The network is an international coalition of health regulators focused on ensuring the safe and effective use of AI in healthcare. Membership in the coalition positions the MHRA as a leading authority in shaping global approaches to the responsible adoption of AI in health and care.
Source: [15]
AI in Health and Care Awards
The AI in Health and Care Awards programme accelerates the testing and deployment of AI technologies across the NHS. Established in 2019, it supports the development of AI tools that help manage health conditions, improve the speed and accuracy of diagnosis, tackle COVID backlogs, and reduce waiting lists.
In the third round of the AI in Health and Care Awards, nine companies received a total investment of £16 million to trial and scale AI solutions aimed at:
- Running faster and more accurate cancer checks
- Diagnosing rare diseases
- Identifying women at the highest risk of premature birth.
Sources: [16], [17]
AI adoption among UK clinics and hospitals: taking the lead or falling behind?
Government support for AI in healthcare is strong in the United Kingdom, yet adoption across clinics and hospitals remains uneven. Many NHS organisations recognise the value of AI, but real-world deployment across clinical pathways continues to progress slowly.
Adoption levels vary across professional groups, yet most categories expect to integrate AI tools into their work in the near future.
of NHS staff support the use of AI for patient care
of NHS staff back AI usage in administrative processes
of healthcare staff report that they are keen to use AI in their daily work
of the NHS staff think AI will make them feel more distant from patients
NHS staff response rate when asked to what extent they agree with the statement 'I look forward to using AI as part of my job'?
Don’t know
Disagree
Neither agree nor disagree
Agree