In This Guide
- What Are Apprenticeship Units?
- What Is AU0002 — And Why AI Leadership?
- Who Is It For?
- The 6 Modules: What You’ll Actually Learn
- How It Differs from a Full Apprenticeship
- Funding: How It Works
- The AI Tools You’ll Use
- Where AU0002 Fits: The TESS AI Skills Pyramid
- How It’s Delivered
- Key Dates & Timeline
- Frequently Asked Questions
- Next Steps
The AI Leadership Apprenticeship Unit (AU0002) is one of the most significant new training opportunities for UK employers in 2026. Announced on 16 March 2026 as part of the first wave of apprenticeship units under the Growth and Skills Levy, the AI Leadership Apprenticeship Unit gives senior leaders practical AI strategy skills in weeks rather than months — and it’s 100% funded for SMEs. Here’s everything you need to know.
At TESS Group, we’ve been preparing for this moment for months. We designed a programme around this unit before the ink was dry, and on 28 April 2026, we’ll be among the first providers in England to deliver it. This guide is our attempt to put everything employers, HR leaders, and senior decision-makers need to know in one place.
“For six years we’ve been helping organisations build AI capability from the ground up — team leaders, practitioners, data scientists. But the missing piece has always been the boardroom. AU0002 fills that gap. For the first time, we can give senior leaders the strategic AI skills they need in weeks, not months, and it’s fully funded.”
1. What Are Apprenticeship Units?
Apprenticeship units are a completely new type of training programme introduced under the Growth and Skills Levy from April 2026. Think of them as focused chapters pulled from full apprenticeship standards — short, sharp courses that address a specific skill gap without the 12–24 month commitment of a traditional apprenticeship.
The first wave includes seven units across AI, electric vehicles, solar PV, welding, and construction. AU0002 — AI Leadership — is the only one aimed at senior leaders, and the only one focused on digital and strategic skills.
This is the first time since the Apprenticeship Levy launched in 2017 that employers can use levy funds for anything other than a full apprenticeship. That alone makes apprenticeship units a significant shift in the landscape.
2. What Is AU0002 — And Why AI Leadership?
AU0002 stands for the second apprenticeship unit approved by Skills England. Its full title is AI Leadership — Developing AI Strategy, and it sits at Level 5, which aligns it with senior management qualifications.
The unit exists because the government and industry recognise a critical gap: the people making decisions about AI adoption in UK organisations often have the least AI knowledge. Frontline teams are learning to use ChatGPT and Copilot, but the leaders setting strategy, allocating budget, and governing AI use are flying blind.
“We see it in nearly every organisation we work with. The team leaders and practitioners are building brilliant AI skills through their apprenticeships, but when they take ideas back to their managers, the conversation stalls. The leadership layer doesn’t have the vocabulary, the frameworks, or the confidence to say yes. AU0002 changes that.”
AU0002 covers eight learning domains defined by Skills England, spanning AI strategy, governance, ethics, workforce transformation, procurement, risk, communication, and practical tool use. TESS Group has translated these into a six-module curriculum that takes learners from understanding the AI landscape to presenting a boardroom-ready AI strategy.
3. Who Is It For?
AU0002 is designed for people with the authority to shape how their organisation uses AI. No coding or technical background is required — this is about strategic leadership, not programming. The typical learner profiles include:
- MDs, CEOs, and business owners — who need to understand what AI can (and can’t) do for their organisation before committing investment
- Department heads and operations managers — who are being asked to “integrate AI” without a framework for how
- Compliance, legal, and governance leaders — who need to build ethical AI frameworks and manage risk
- Transformation leads and programme directors — overseeing digital change and AI adoption
- HR directors and L&D managers — responsible for building AI capability across the workforce
The common thread is decision-making authority. If you influence how AI is adopted, governed, or funded in your organisation, this unit is built for you.
4. The 6 Modules: What You’ll Actually Learn
We’ve structured AU0002 into six modules that build on each other, taking learners from understanding the AI landscape to delivering a complete AI strategy. Each module produces a tangible output that can be applied immediately in your organisation.
Identifying AI Value and Use Cases
Map the current AI landscape across major platforms. Identify sector-specific opportunities. Produce an AI opportunity map prioritised by impact, feasibility, and risk.
Redesigning Processes and Workforces for AI
Process-map your operations to identify automation candidates. Build workforce transition plans that ensure your people adapt alongside the technology.
Data and Technology Foundations for AI Strategy
Evaluate enterprise platforms and infrastructure requirements without needing a technical background. Produce a technology readiness assessment for your organisation.
Ethics and Risk Management in AI
Develop governance frameworks that address bias, transparency, and regulatory compliance. Define your organisation’s AI risk appetite with audit-ready documentation.
Executing and Measuring AI Success
Convert strategy into action with implementation roadmaps, success metrics, and accountability structures. Build the business case with evidence-based ROI frameworks.
The AI Leadership Mindset
Develop the leadership behaviours needed for successful AI adoption. Your capstone: a boardroom-ready AI strategy presentation built from real organisational data.
5. How It Differs from a Full Apprenticeship
If you’re already familiar with apprenticeships, the obvious question is: how is this different? The short answer is that apprenticeship units are designed for targeted skill injection, while full apprenticeships build occupational competence over time.
| Apprenticeship Unit (AU0002) | Full Apprenticeship | |
|---|---|---|
| Duration | 4–8 weeks typical | 12–24 months |
| Learning hours | 30–140 hours | 300+ hours |
| Assessment | Internal skills test + employer validation | Formal End-Point Assessment (external) |
| EPA required | No | Yes |
| SME funding | 100% government-funded | 95% funded (5% employer contribution)* |
| Off-the-job training | Flexible scheduling | 20% of working hours (~1 day/week) |
| Best for | Rapid strategic upskilling | Deep career development |
| English & Maths | Not required | Level 2 required |
*From August 2026, co-investment for full apprenticeships changes to 75% government / 25% employer for non-levy employers.
Neither format is “better” — they serve different needs. If you want to build a team of AI practitioners over 15–18 months, our full AI apprenticeships are the right route. If you need your leadership team to develop AI strategy skills in the next quarter, AU0002 is purpose-built for that.
Launching 28 April 2026 — Secure Your Place
TESS Group is one of the first approved providers for AU0002. We’re now accepting expressions of interest for the first cohorts.
Book a Free Discovery Call6. Funding: How It Works
One of the most attractive aspects of AU0002 is the funding model. In short: employers don’t pay.
If you’re a non-levy employer (annual pay bill under £3 million), the government funds 100% of the cost. No co-investment, no hidden fees. This is a significant improvement on full apprenticeships, where non-levy employers currently contribute 5% (rising to 25% from August 2026).
If you’re a levy-paying employer (annual pay bill over £3 million), you use your Growth and Skills Levy account to cover the cost. Given the short duration and focused scope, AU0002 uses a fraction of what a full apprenticeship would draw from your levy pot.
7. The AI Tools You’ll Use
AU0002 isn’t a course about AI in the abstract. Learners get hands-on experience with the five major AI platforms currently shaping the enterprise landscape:
- ChatGPT (OpenAI) — the market leader for conversational AI and content generation
- Microsoft Copilot — integrated across the Microsoft 365 ecosystem
- Claude (Anthropic) — known for nuanced reasoning and safety-first design
- Google Gemini — Google’s multimodal AI platform
- Grok (xAI) — emerging enterprise AI capabilities
The focus isn’t just learning which buttons to press. It’s about evaluating these tools strategically: which platform fits your use case, how to manage vendor lock-in, what the data governance implications are, and how to build exit strategies into your procurement decisions.
“Most AI training teaches people how to use a tool. We teach leaders when to use it, why to choose one over another, and what questions to ask before signing a contract. That’s the difference between operational AI skills and strategic AI leadership.”
8. Where AU0002 Fits: The TESS AI Skills Pyramid
AU0002 doesn’t exist in isolation. At TESS Group, we deliver six AI apprenticeships across Levels 3–6, covering every layer of an organisation. AU0002 sits at the top as the strategic leadership layer:
The power of this ecosystem is that every level reinforces the others. When your senior leaders complete AU0002 and return with an AI strategy, they have teams already building AI skills through full apprenticeships at Levels 3, 4, and 6. The strategy doesn’t land in a vacuum — it lands on a workforce that’s ready to execute it.
“We’ve always believed AI transformation needs to happen at every level of an organisation simultaneously. AU0002 is the final piece. Now we can equip the boardroom and the frontline, and the strategy connects all the way down. That’s what makes TESS different from providers who deliver a single programme in isolation.”
9. How It’s Delivered
TESS Group delivers AU0002 through live, expert-led sessions via Zoom and Microsoft Teams. There are two enrolment approaches depending on what works best for your organisation:
Pilot approach: Enrol one or two senior leaders first to test the value before committing a wider team. This is popular with organisations that want to demonstrate impact to the board before a full rollout.
Full team cohort: Train your entire leadership team together. This builds a shared AI vocabulary, creates peer accountability, and ensures your leadership team is aligned on strategy from day one.
Every learner receives 1:1 coaching tailored to their organisation’s context, interactive workshops with real-world case studies, and ongoing support throughout the programme. Assessment is through an internal skills test — no external examiner, no EPA bureaucracy — validated by the employer to confirm the skills have been applied in the workplace.
10. Key Dates & Timeline
Government announces first 7 apprenticeship units, including AU0002
AU0002 officially approved for delivery by Skills England
Growth and Skills Levy replaces Apprenticeship Levy; funding bands confirmed
TESS Group launches AU0002 — first cohorts begin
New co-investment rates take effect for full apprenticeships (25% employer contribution for non-levy). Apprenticeship units remain 100% funded for SMEs.
Rolling monthly starts available throughout the academic year. Additional apprenticeship units expected to be announced.
11. Frequently Asked Questions
Do learners need any technical or coding experience?
No. AU0002 is designed specifically for leaders without technical backgrounds. You don’t need to know how to code, build a model, or configure a platform. The programme focuses on strategic decision-making, governance, and evaluation — the skills leaders actually need.
Is there an exam or End-Point Assessment?
No EPA. Learners complete an internal skills test delivered by the TESS Group training team, validated by the employer. This confirms that the knowledge has been applied in the workplace. It’s practical, proportionate, and designed for busy senior leaders.
Can we enrol just one person, or does it need to be a full team?
Both options work. Many organisations start with a pilot of one or two leaders, then roll out to the wider team once they’ve seen the impact. We support both approaches.
What qualifications do learners receive?
Learners receive the officially recognised AU0002 Apprenticeship Unit completion — verified by Skills England and validated by the employer. This isn’t a certificate from a training company; it’s a nationally recognised qualification under the Growth and Skills Levy framework.
How much time does it take out of the working week?
Delivery is flexible and designed to work around senior leaders’ schedules. Most learners complete the programme over 4–8 weeks with a commitment of a few hours per week, plus dedicated workshop sessions. Nothing like the 20% off-the-job requirement of a full apprenticeship.
Can this count towards a full apprenticeship later?
Apprenticeship units are designed with portability in mind. While the formal credit transfer framework is still being developed by Skills England, completing AU0002 provides a strong foundation for any leader who later enrols on a full Level 5 or Level 6 programme.
Who else is delivering AU0002?
A small number of providers have been approved, including Boom Training, Cambridge Spark, and Blackpool and Fylde College. TESS Group is among the first to go live, with our programme launching on 28 April 2026. Our difference is the full AI skills ecosystem — we don’t deliver AU0002 in isolation; we connect it to Level 3, 4, and 6 apprenticeships across your entire organisation.
12. Ready to Give Your Leadership Team AI Strategy Skills?
TESS Group is now accepting expressions of interest for AU0002, launching 28 April 2026. Whether you want to start with a pilot or enrol your full leadership team, the first step is a free, no-obligation discovery call.