James Gibson, head of Revolut Business, says AI is lowering the capital requirements for startups aiming to build global operations. He argues this change is pushing founders to focus more on which countries create the best environments for scaling. In response, the UK government has rolled out initiatives to attract high-growth firms. These include £500m in new support for innovative businesses and a visa program that could cover up to £25,000 annually in immigration costs for eligible scale-ups hiring foreign talent.
How AI is changing what investors look for
According to the Entrepreneurs Network, 65 percent of founders find the UK a straightforward place to launch a business, but just 14 percent say it is easy to grow. Raising funds remains tough, but founders now rank tax and regulation as more important than capital when judging a country’s business climate. Gibson says AI is dramatically cutting operational costs, allowing solo founders to handle tasks that once needed large specialist teams. Money is now flowing to areas AI can’t help, such as legal compliance and expanding overseas.
While the US still attracts many ambitious entrepreneurs, Gibson said the UK is closing the gap. London and the rest of the country are updating rules and opening new funding streams to help fast-growing companies. London Mayor Sadiq Khan made similar comments during London Tech Week. He pointed to rising political uncertainty in the US as a reason why founders and investors are looking elsewhere. London’s global talent, strong financial services, and cultural appeal, he said, make it a strong contender.
Tackling real-world scaling hurdles
The UK government has addressed frequent complaints about its immigration system by introducing a new program for digital, life sciences, and clean energy scale-ups. The scheme can reimburse up to £25,000 in visa costs. Gibson said AI is making it easier to start businesses by reducing the need for big teams and expensive upfront investment. Startups are using coding tools, AI agents, and automated customer support to test ideas and serve markets without hiring huge engineering or operations staff.
This shift is affecting venture capital. Investors are backing companies that can generate real revenue with fewer people and less money. A recent analysis found AI-focused startups use about 25 percent fewer staff than others but achieve similar valuations. As software becomes cheaper to build, success is moving from who writes code to who identifies customer needs and navigates global markets.
AI’s growing influence on the global economy
Even as venture capital remains important, UK tech firms increasingly face challenges from regulation and recruitment. Gibson said AI can help with execution, but not with innovation itself. Competitive edge is now more about the right customers and market strategy than development speed.
McKinsey estimates generative AI could boost the global economy by $4.4tn a year. AI-first companies are now judged by how much revenue they make per employee and how fast they act—not by how many people they hire. Gibson said falling startup costs are making markets more competitive, and success depends on understanding customers and scaling across borders.