Catch up on this month’s round-up of the latest hosting and tech news. Here’s what we’ve uncovered since our last edition.
UK AI Growth
The UK’s AI industry is now valued at £171.6 billion, confirming its status as the largest AI economy in Europe and ranking third globally after the US and China. The latest Tech Nation Report also shows that UK AI startups raised £770 million in funding in Q1 2025, the highest quarterly figure for three years. Due to the rising demand for AI business tools, the biggest investment has been in enterprise software, which has attracted almost £3 billion in the last two years.
Partly fuelled by major companies like ARM, the sector has shown a compound annual growth rate of 22% over the past five years. London remains the main centre, with ten times the investment of other areas; however, regions like the North West and Scotland are also experiencing a growth in investor interest.
Despite the success, many startup leaders report issues with accessing funding, scaling limitations and skilled labour, with one-third contemplating moving abroad. To address these issues, the industry has called for government-supported funding, tax breaks and easier visa processes for overseas talent.
AI Cuts Council Admin
Early results from Stockton Council have shown its trial of two AI tools has made administrative tasks easier and less time-consuming. The two systems, Minute and Magic Notes, can be used to record, transcribe and summarise meetings with up to 40 participants. The software cuts manual transcription time from hours to just minutes and automatically generates reports and action plans.
The trial is part of a national project involving 25 councils which aims to reduce the time spent on admin so public sector staff can concentrate more on delivering frontline services. Council leaders have emphasised that the technology is meant to improve efficiency and employee skills, not to eliminate jobs. However, trade union Unison has called on councils to ensure that the introduction of the scheme will include clear plans for staff training and redeployment.
MSP Scrutiny
Rising threat levels mean managed service providers (MSPs) are facing greater scrutiny from clients who depend on them for cybersecurity. Research from Cybersmart shows that 84% of MSPs are now expected to manage their clients’ entire cybersecurity systems or IT assets, up from 65% last year. As a result, 77% of MSPs say their security practices have been examined more closely over the past year.
AI, mentioned by 38% of respondents, has surpassed malware and ransomware as the primary security concern for clients, while insider threats and unpatched systems continue to be significant problems. MSP supply chain threats are another concern, given that 69% of providers reported several breaches in the past year.
The findings highlight the urgent need for strong internal defences and secure partnerships as MSPs remain the first line of defence for their clients’ digital infrastructure. In response, most MSPs have boosted their investment in security personnel, tools and compliance measures.
Autofocus Glasses
A Finnish startup, IXI, has unveiled prototype autofocus glasses that can dynamically correct people’s vision without the issues associated with bifocal or progressive lenses. Backed by £27 million in funding, the company’s liquid crystal lenses adjust focus based on eye movement, using a low-power sensor that detects whether the user is looking near or far. Fitting within standard glasses frames, the system adjusts focus in less than 0.2 seconds, providing full-field correction without distorting peripheral vision.
Although still in the R&D phase, IXI hopes to commercialise the technology in a market worth £150 billion and growing. While competitors in France and Japan are also developing similar products, these have yet to be launched. IXI, meanwhile, plans to begin live demonstrations later this year. If successful, these products could transform the eyewear industry and the lives of spectacle wearers.
Smart Buildings Risk
UK companies are becoming increasingly vulnerable to cyber threats targeting smart buildings. A recent report from The Royal Institution of Chartered Surveyors (RICS)?shows that 27% of smart properties experienced an incident in the last 12 months, up from 16% in the previous year.
One of the issues is that the merging of operational technology (OT) and IT systems, such as Building Management Systems (BMS), HVAC, access controls and IoT sensors, has given cybercriminals more ways to attack. Surprisingly, many of these automated systems also operate on outdated platforms like Windows 7, which makes them highly vulnerable to known exploits.
According to RICS, the consequences go beyond cybersecurity: compromised smart systems can void insurance policies, cause reputational harm, and even lower property values due to inadequate digital hygiene. As buildings are now digital environments, the Institute advises businesses to ensure that OT assets have the same level of security as traditional IT to reduce risk.
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