1. How the UK Plans to Attract AI Talent Towards an ‘AI Visa‘

Last year, the Government published its official response to the AI Opportunities Action Plan, an independent report produced by the Department for Science, Innovation and Technology. The Prime Minister, in the foreword to the report, described Artificial Intelligence as “the defining opportunity of our generation,” outlining his goal to make Britain an “AI superpower.”

The report included 50 recommendations across a range of areas for actions the Government could take to achieve this objective. Interestingly, in its response, the Government agreed with all but two of the recommendations. One recommendation it only partially endorsed was to “explore how the existing immigration system can be used to attract graduates from universities producing some of the world’s top AI talent.” It responded:

Recommendation 21: Partially agree. 

The Industrial Strategy will set out how the UK will attract highly skilled AI workers from abroad. The UK offers internationally competitive visas that can support a range of individual needs, including for talent to join UK-based organisations or to start their own business. Talented AI graduates from institutions not on the HPI eligibility lists can enter the UK through any one of a number of other visa routes, including Skilled Worker, Innovator Founder, Government Authorised Exchange and Global Talent.

2. The UK’s AI Ambitions and the Immigration System

The Government’s response suggests that we are unlikely to see a specific ‘AI Visa’ in the near future. Regardless, there remain several routes that talented individuals working in the field of AI (and in digital technology more broadly) may consider applying for should they wish to come to the UK. In this first of a series of articles, we consider one of the routes outlined above, Innovator Founder, and outline some important considerations for applicants seeking to rely on an AI-related business. 

3. UK Innovator Founder Visa

The Innovator Founder Visa is for start-up entrepreneurs and experienced businesspersons seeking to establish a business in the UK. Applicants must have an innovative, viable and scalable business idea, supported by a business plan, which has been approved by an endorsing body. Individuals seeking to come to the UK to build an AI start-up or launch a product built with Artificial Intelligence may wish to consider this route. 

It is important to note that the Home Office does not consider the Innovator Founder route to be simply another way of coming to the UK; the most recent figures suggest that only 25-30% of businesses make it past the assessment stage. Instead, they consider it a method of supporting projects which are likely to drive growth and bring wider economic benefits to the country. The endorsing bodies have made clear that they tend to favour businesses they consider to be ‘low risk’ which have a high likelihood of contributing to growth and creating high-quality jobs in the UK.

4. What “Innovation” Really Means for an AI Business

In this regard, the Home Office does not automatically consider AI-related proposals as meeting this threshold, nor do they consider them to be inherently innovative or viable. Instead, they offer specific guidance to the endorsing bodies on what constitutes both:

When assessing if an application meets the innovative requirement, we expect you to consider the following core principles:

• Business propositions should be able to demonstrate a clear and compelling unique selling proposition (USP) i.e. what is it about the product or service that differentiates it from its competitors?
• The concept for innovation within the business should demonstrate a business proposition that is not easily replicable by others / can demonstrate reasonable barriers of market entry to otherwise replicating their proposed innovation.
• The innovation element should be core to the success of the proposed business proposition and be primarily delivered within the business.

Business plan proposals that should not be considered as meeting the innovative standard include:

• Where the innovation element and associated research, design or implementation is largely outsourced to a third-party provider.
• Generic businesses with an only incidental innovation proposition, for example a taxi or cleaning company “with an app”.

Example: likely to meet innovative endorsement criteria

An applicant is part of a founding team spinning out a venture from a University research programme commercialising a new engine efficiency technology. The applicant can clearly articulate what the company’s R&D proposition looks like, can demonstrate a strong case for how their technology is new to the market and presents a clear route to commercialisation.

Example: unlikely to meet the innovation endorsement criterion

An applicant as a sole founder wants endorsement to set up an “EdTech” company where the innovation proposition is based on an “Artificial Intelligence” focused platform that will teach a subject to under 18s. The applicant has no background in AI and has no supporting team member with competence in this field. The applicant can say what the product is that they want to ultimately sell but has no specific grasp of how that would be achieved at a technical level and instead will outsource all the technical development in delivering this innovation to a third-party company to build the product on their behalf.

5. Proving Your AI Business Is Viable for a UK Visa

From the above examples, companies in which Artificial Intelligence is incidental to the core business proposition, or where the technical basis of the product cannot be properly articulated, are unlikely to be endorsed. Founders, while not expected to build their own models, should demonstrate that the product has capabilities beyond those readily achievable by others, and that they as an entrepreneur have the appropriate skills and experience to deliver the product to market. In this regard, the guidance outlines how viability is assessed:

You must assess the following requirements as part of this criterion:

• The applicant’s business plan must be realistic and achievable based on the applicant’s available resources.
• The applicant must have, or be actively developing, the necessary skills, knowledge, experience and market awareness to successfully run the business.

In considering these requirements you should consider:

• Does the applicant have access to sufficient funds to deliver the proposed business?
• Can the supporting financial projections be credibly defended?
• Can the applicant show they have appropriate skills, knowledge, and experience to credibly deliver the project?
• Is there credible demand for the business’s proposed product/services?

Example: likely to meet the viability endorsement criterion

The applicant is launching a business developing and manufacturing a new medical device. The applicant can show rigorous and credible research around minimum set up costs such as the price of buying in tooling equipment, hiring technicians, and operating factory/laboratory space. The applicant can also show they have considered and researched market demand and pricing. The business has access to a sufficient level of funds and the financial forecasts can be properly defended. The applicant and any associated co-founders can show that the founding team has the necessary skills and knowledge to credibly be capable of successfully developing and delivering the product to market.

Example: unlikely to meet the viability endorsement criterion

The applicant intends to create a new web portal for selling fashion accessories with an Artificial Intelligence-powered shopping assistant. The proposed financials appear generic and with little evidence of any research to set out specific detailed costings of minimum set up costs. The applicant has stated regarding the web portal set up that the platform will cost £20,000. When asked how much that will cost, they simply say this is what they have been told it will cost them. No budget has been allocated for ongoing essential run costs such as server rental. The applicant is a sole founder but has no technical expertise to take ownership of the product build.

The viability of the business is therefore assessed in relation to both its specific proposition and the individual applicant’s capacity to carry out the business plan. The endorsing body wants to be satisfied that the business will be able to maintain itself, pay necessary costs, and ultimately generate returns. Anything that evidences this should be provided in support of an application. This includes assets, investments (actual or projected) and any revenue generated overseas. It should be noted that funds should be liquid and readily transferable to a UK bank account.

6. Financial Planning Challenges for AI Start-Ups

Financial projections should also be included in the business plan and be as detailed as possible. For AI businesses, key financial considerations include:

1. Compute: Applicants might wish to detail the exact type and quantity of resources needed for their workloads, outline how compute consumption scales at different stages of growth, and outline likely costs – supported by research.
2. Data: Whether the business plan relies on commercial models, open-source models, or in-house models will determine the data requirements. Consider the cost of sourcing, licensing, or generating proprietary/synthetic datasets as well as any expenses related to data storage and any downstream computational costs.
3. Talent Acquisition: High-level AI talent is expensive. Projections should outline a realistic budget for compensation for AI/ML engineers.
4. Intellectual Property (IP) and Legal Costs: Consider the costs associated with protecting the core innovation, particularly if you intend to rely on the IP protection settlement criterion. It may be useful to consider necessary costs for compliance related to data privacy and any potential AI legislation or regulations.

7. From AI Start-Up Founder to UK Settlement

If the business plan is endorsed and the visa application is successful, applicants begin what is currently a three year route to settlement. The ‘earned settlement’ changes expected later in 2026 may lead to a change in the Rules, but the proposals suggest that Innovator Founder will remain a three year route. 

The Home Office does not necessarily expect applicants to meet the settlement targets within the initial visa period; three years is the fastest possible route to ILR, rather than the expectation. Extension applications under the ‘same business’ criteria are permitted, so long as there has been significant progress against the endorsed business plan. 

Applicants should consider the settlement criteria from day one. The requirements are as follows:

(a) confirmation that the applicant has shown significant achievements, judged against the business plan assessed in their previous endorsement; and

(b) confirmation that the applicant’s business is registered with Companies House and the applicant is listed as a director or member of that business; and

(c) confirmation the business is active and trading; and

(d) confirmation that the business appears to be sustainable for at least the following 12 months, based on its assets and expected income, weighed against its current and planned expenses; and

(e) confirmation the applicant has demonstrated an active key role in the day-to-day management and development of the business; and

(f) confirmation the applicant’s business venture has met at least two of the following requirements:

• (i) at least £50,000 has been invested into the business and actively spent furthering the business; or

• (ii) the number of the business’s customers has at least doubled within the most recent three years and is currently higher than the mean number of customers for other UK businesses offering comparable main products or services; or

• (iii) the business has engaged in significant research and development activity and has applied for intellectual property protection in the UK; or

• (iv) the business has generated a minimum annual gross revenue of £1million in the last full year covered by its accounts; or

• (v) the business is generating a minimum annual gross revenue of £500,000 in the last full year covered by its accounts, with at least £100,000 from exporting overseas; or

• (vi) the business has created the equivalent of at least 10 full-time jobs for settled workers; or

• (vii) the business has created the equivalent of at least 5 full-time jobs for settled workers, each of which has a mean salary of at least £25,000 a year (gross pay, excluding any allowances).

8. Choosing the Right Settlement Targets for an AI Business

Which of the optional criteria the applicant chooses to focus on will depend on the needs and capabilities of the business. While deviations to the initial plan are permitted, this decision should aim to be made and explicitly detailed within the business plan from the very beginning. 

Most applicants choose to focus on the £50,000 investment and one other target. AI companies are notoriously capital intensive, with fewer employees drawing higher compensation than more traditional businesses. This can make it more difficult to create the jobs necessary to meet the requirements. Similarly, should businesses wish to focus heavily on research and development with the aim of applying for intellectual property protection, this might limit its ability to invest in growth to meet the revenue and customer-base targets. It is for these reasons that developing a business plan with your immigration goals in mind from the beginning is paramount. 

9. Using AI Tools to Write Your Business Plan

Finally, whether you are building an AI company or are launching an innovative business in an entirely separate field, you will have likely considered the role that Artificial Intelligence can play in developing your business plan and submitting a successful application for endorsement. Unlike other routes, the endorsing bodies do not explicitly prohibit the use of AI in the application, understanding AI tools’ potential to support individual founders to scale their business effectively and efficiently. However, it is important to be aware of the potential risks associated with use of generative AI tools like ChatGPT, Gemini, and Claude. 

Firstly, business plans that rely too heavily on generative AI tools risk being generic and shallow. The endorsing bodies review hundreds of business plans and are adept at spotting common AI syntax and tendencies. This can quickly undermine a unique business idea and the endorsing body’s trust in you as a founder. They want to understand why you, the founder, want to build this company in the UK at this time. This means outlining a clear narrative allowing your passion to shine through. 

Secondly, elements of the business plan where accuracy is paramount, such as discussions of legal and regulatory requirements, should be very carefully reviewed where AI has been used in drafting. AI often ‘hallucinates’ which can be fatal, particularly in industries where compliance is non-negotiable. Including incorrect or out of date information is very likely to hinder a positive endorsement decision. 

Finally, should you be required to sit an interview as part of the application process, you will be required to account for everything in the plan. If you have delegated key product design or operational strategy decisions to generative AI, which inherently lacks the necessary context to apply its outputs to the real world, you may find articulating this vision and demonstrating a true understanding of the business proposition difficult. AI should therefore be used to complement, not replace, the vision of the founder.

10. Key Takeaways for AI Innovator Founder Applicants

The Innovator Founder visa can be an attractive route for anyone wishing to build an innovative business in the UK, but it can also be demanding. Founders of AI companies should not assume that the business will be seen as innovative. A well-prepared business plan and broader application which addresses the three key criteria: innovation; viability; and scalability, and demonstrates potential to benefit the UK economy, is essential to secure endorsement.

11. Contact Our Immigration Barristers

For tailored advice on applying under the Innovator Founder route and meeting the requirements for a successful endorsement and visa application, contact our immigration barristers in London on 0203 617 9173 or complete the enquiry form below.

12. Frequently Asked Questions

What is the Innovator Founder visa for AI businesses?

The Innovator Founder visa allows entrepreneurs to establish an innovative, viable, and scalable business in the UK, including AI start-ups, with endorsement from an approved body.

Does having an AI business automatically make me innovative for this visa?

No. For an endorsement application to be successful, the business must demonstrate a unique proposition, present clear barriers to replicability, and have innovation as a core element of its operation.

What does a business plan need to show for endorsement?

A business plan must demonstrate innovation, viability, and scalability. It can show this by presenting a unique idea backed by realistic financial projections, relevant skills within the founding team, market research, and the potential for growth and economic benefit in the UK.

Can founders outsource AI development and still get endorsed?

Endorsing bodies may reject applications where the innovation is largely outsourced. Founders should show technical understanding or have team members with the necessary expertise to deliver the product.

How is viability assessed for AI businesses?

Viability is essentially concerned with the financial sustainability of the business. This is measured by available funds, credible financial projections, the skills and experience of the founder, market demand for the product, and the ability to maintain the business and meet operational costs.

What are the financial considerations for AI start-ups?

Key costs include compute resources, data acquisition and storage, talent recruitment, IP protection, and compliance with regulatory requirements. Financial projections should detail these clearly.

Can I use AI tools to help write my business plan?

Yes, but over-reliance on AI risks generic or inaccurate plans. Founders must ensure all legal, technical, and strategic content is accurate and demonstrate a clear personal vision in the plan.

How does the Innovator Founder visa lead to settlement in the UK?

Successful applicants can reach settlement in three years, subject to making progress against the business plan, demonstrating that the founder has an active role in the business, and meeting at least two optional criteria such as investment, revenue, customer growth, R&D, or job creation.