The new funding plan will back 98 new initiatives using AI with the aim of improving economic productivity, and involve around 200 businesses and research organisations.

The projects, which focus on ‘high-growth’ industries, are funded through the UK Research and Innovation (UKRI) Technology Missions Fund and delivered through the Innovate UK BridgeAI programme.

Initiatives receiving funding include a project developing an autonomous system to monitor, manage and identify defects on rail infrastructure, and work to develop real-time pricing and market trend analysis to address the issue of pricing second hand apparel.

Other work focuses on addressing disinformation, capturing and analysing data for the creative industries, and understanding passenger behaviour.

Feryal Clark, minister for digital government and AI, said: "AI will deliver real change for working people across the UK – not only growing our economy but improving our public services.

"That’s why our support for initiatives like this will be so crucial – backing a range of projects which could reduce train delays, give us new ways of maintaining our vital infrastructure, and improve experiences for patients by making it easier to get their prescriptions to them.

"We want technology to boost growth and deliver change right across the board, and I’m confident projects like these will help us realise that ambition."

Last week, BBC News reported that the government had dropped a £1.2bn plan for technology and AI pledged by the previous Conservative government.