Overview and Key Themes
January 2025 brought a wave of new AI announcements from both private and public organisations in the UK, with two standout themes emerging: operational efficiency and the rise of generative AI. Many projects focus on improving workflows, streamlining processes, and reducing manual effort—whether in underwriting, bakery production, or public sector administration. This emphasis on AI-driven optimisation is rapidly becoming the norm across multiple industries, from insurance to education.
Meanwhile, generative AI applications, particularly those that assist with content creation, Q&A interactions, and process automation, are also front and centre. Examples range from a DIY assistant chatbot in retail to next-level underwriting in insurance. These projects leverage generative AI not only to enhance customer service but also to free up employee time and improve decision-making.
Top 5 AI Projects Announced in January 2025
1. Hiscox – “Augmented Underwriting”
Overview: Insurance firm Hiscox is deploying a generative AI tool to streamline underwriting. The project uses advanced AI models to read and interpret broker submissions, sort policy data, and help underwriters focus on more complex, high-value decisions.
Firms Involved: Hiscox (in collaboration with Google’s AI team).
Objective: To reduce manual analysis time, improve accuracy in risk assessment, and accelerate the quote and policy issuance process.
2. EdTech startups in partnership with Department for Education – AI Tools for Teachers’ Marking
Overview: As part of a Department for Education and Department for Science, Innovation and Technology initiative, multiple edtech companies received funding to build AI systems that automatically mark student work. These tools can read and analyse handwritten assignments or typed essays, offering detailed, personalised feedback in minutes, an initiative with endorsement from Technology Secretary, Peter Kyle and Education Secretary, Bridget Phillipson.
Firms Involved: Summatic, Kings College London and 14 education technology companies funded through a government scheme.
Objective: To free teachers from hours of grading, enabling them to spend more time on lesson planning, intervention, and in-class instruction.
3. B&Q – “DIY Assistance App”
Overview: B&Q, under the Kingfisher group, is rolling out a generative AI-powered virtual assistant that helps customers plan and execute DIY projects. From choosing the right tools to step-by-step instructions, this app provides tailored guidance and product recommendations.
Firms Involved: Kingfisher (B&Q, Castorama, Screwfix) with tech partners for generative AI integration.
Objective: To make DIY guidance more accessible, reduce customer confusion in-store and online, and streamline product discovery.
4. Government and Civil Service – “Humphrey”
Overview: The UK government has introduced “Humphrey,” a suite of AI tools designed to modernise the civil service. It automates routine administrative tasks, processes documents, and even assists in drafting official communications.
Firms Involved: Internal government tech teams, with third-party AI technology providers.
Objective: To increase operational efficiency across government departments, reduce reliance on costly external resources, and allow civil servants to focus on higher-level functions.
5. AI for Bakery Demand Forecasting
Overview: An SME bakery in London, Miel Bakery, partnered with Oxford Cognitive Labs to develop an AI model that predicts sales of each bakery product. By analysing historical demand and real-time variables (weather, local events, etc.), the system adjusts production volumes daily to minimise waste.
Firms Involved: Miel Bakery (SME), Oxford Cognitive Labs.
Objective: To reduce food waste, optimise baking schedules, and ensure customers always find fresh products available.
Other Notable AI Use Cases in January 2025
Below are additional projects that captured attention but did not make our Top 5 list:
- Lloyds Banking Group – AI in Operations
Deploying machine learning for internal process improvements and advanced customer services. - SoftCo – AI in Financial Process Automation
Partnering with PwC to offer AI-driven accounts payable solutions that streamline invoice processing. - AI Diagnostics in the NHS – £21m Investment
Funding initiatives focused on AI-powered cancer and medical screenings, accelerating early diagnosis. - Robotiz3d – Pothole Detection
A road infrastructure AI system that forecasts and detects pothole formation for preemptive repairs. - Ocado – AI to Reduce Food Waste
Advanced forecasting models to optimise grocery inventory and minimise perishable goods’ spoilage.
From automating insurance workflows to forecasting daily bakery sales, the message is clear: AI is reshaping how organisations of all sizes operate. Generative AI, in particular, is rapidly becoming a go-to technology for improving efficiency, reducing administrative overhead, and creating more engaging customer experiences. Stay tuned as these trends continue to evolve—and as more UK organisations discover the transformative power of AI.
