Welsh Government AI Funding 2026: The Complete Guide for Cardiff Businesses

In January 2026, the Welsh Government announced a £2.1 million support package specifically to help Welsh businesses adopt artificial intelligence. If you run a business in Cardiff or anywhere in Wales, there's money available right now to help you implement AI — and most businesses don't even know it exists.

This guide breaks down every funding stream, who qualifies, and exactly how to apply.

The £2.1 Million AI Support Package

The package has three components:

1. Business Wales AI Awareness & Adoption Programme (£600,000)

This is practical, hands-on support for SMEs looking to understand and adopt AI. It's not training — it's guidance on identifying where AI can help your business and how to implement it.

Contact Business Wales on 03000 6 03000 to access this support.

2. AI Training Through the Flexible Skills Programme (£1,000,000)

This is the big one. The Welsh Government funds 75% of AI training costs for Welsh businesses. You pay 25%. It applies to accredited AI training courses that upskill your team.

Maximum government contribution: £50,000 per application. No minimum. You can apply multiple times.

3. Tourism & Events Sector AI Support (£500,000)

A dedicated programme targeting 1,000 Welsh tourism and events businesses. Run in partnership with the Hartree Centre Cardiff Hub and Cardiff University. Focuses on AI for digital marketing and content creation in the hospitality sector.

The Flexible Skills Programme: How It Actually Works

This is the programme most Cardiff businesses should focus on. Here's the detail:

What it funds: Accredited AI training courses for your employees. This covers the cost of the training itself — instructor fees, course materials, certification.

What it doesn't fund: Software purchases, hardware, or implementation services. It's training only.

Funding split: Welsh Government pays 75% of AI training costs. You pay 25%.

Who's eligible: Any business based in Wales. No sector restrictions. No minimum size. You must be solvent and commit to releasing staff to complete the training.

How to apply:

1. Submit an Expression of Interest form at businesswales.gov.wales

2. The Welsh Government Skills team reviews within 10 working days

3. If eligible, you're invited to submit a detailed application

4. Funding is awarded at the Welsh Government's discretion

Contact: 03000 6 03000 or email dfesrm@gov.wales for AI-specific queries.

Other Funding Worth Knowing About

Development Bank of Wales — Loans from £1,000 to £10 million for any Welsh business. Not grants, but flexible lending with competitive rates. Useful if you need capital for an AI implementation project.

Tech Valleys Productivity Programme — Capital grants of £10,000–£50,000 for engineering and manufacturing businesses in the South Wales Valleys. If you're a manufacturer looking to automate with AI, this is worth exploring. Runs until 2028.

SWEF Enterprise Grants — Up to £2,000 for 18–30 year olds starting businesses in Wales. If you're a young entrepreneur building an AI-first business, this can help with initial setup costs. Check availability as it reopens periodically.

How to Maximise Your Grant Application

Based on working with Welsh businesses on AI adoption, here's what we've seen work:

Be specific about outcomes. Don't say "we want AI training." Say "we want to train 3 staff members on AI customer service tools to reduce missed phone enquiries by 50%."

Tie it to business growth. The Welsh Government wants to see economic impact. Frame your application around jobs, revenue, or efficiency gains.

Get help with the paperwork. Business Wales has Relationship Managers who can guide you through the application process. Use them — they're free.

Apply early. These programmes have budgets that run out. The sooner you apply, the better your chances.

What DAX Studio Can Do

We help Cardiff businesses implement AI voice agents and automation systems. As part of our service, we assist with the Flexible Skills Programme application — we've been through the process and know what the Welsh Government is looking for.

If you want to explore whether AI makes sense for your business and how to access the available funding, get in touch.

Contact DAX Studio: ruben@daxstudio.co.uk | Cardiff, South Wales