Artificial intelligence is emerging as a key driver of growth in the UK’s climate tech start-up ecosystem, with AI-related ventures attracting record levels of funding even as broader climate investment stalls, according to new research by Sustainable Ventures.
The study, titled “Advancing AI’s Potential for Climate Innovation”, draws on data from 3,345 high-growth UK climate tech start-ups compiled by Beauhurst and includes qualitative insights from founders, investors and academics. It concludes that while AI is transforming innovation in the sector, adoption remains uneven — with software-led start-ups attracting the lion’s share of investment.
Sustainable Ventures found that 9.7% of UK climate tech start-ups are now AI-related — more than double the national high-growth start-up average of 4.6%, and higher than the financial services sector (6.9%). The proportion of AI-enabled climate ventures has risen by an average of 17% per year over the past five years, underscoring AI’s expanding role in the UK’s net zero transition.
In 2024, 40% of all UK climate tech investment went to AI-related companies, up from 20% in 2022. By contrast, non-AI funding has stagnated, growing by just 0.5%, with early data from 2025 pointing to a sharper decline.
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