How to use your apprenticeship levy for AI training
Yes, you can fund AI training with your apprenticeship levy, if you use it the right way. Here is exactly what is levy funded, how to spend your levy before it expires, and the funding available if you do not pay the levy.
Can you use the apprenticeship levy for AI training?
This catches a lot of employers out. They assume "AI training" is one thing, so they either wrongly believe none of it is fundable, or they try to put a short course through the levy and find they cannot. The honest position is in between: the substantial, capability-building routes are levy funded, and that is where the value is anyway.
Is AI training levy funded? What counts, and what does not
| Type of AI training | Levy funded? | Notes |
|---|---|---|
| AI & Automation Practitioner (Level 4 apprenticeship) | Yes | Flagship route, 100% levy funded for levy payers |
| Level 5 AI Leadership Units | Yes | Short, focused apprenticeship units for senior staff |
| AI for Team Leaders / Operations Leaders (apprenticeships) | Yes | Management apprenticeships with AI built in |
| One-day AI workshops (e.g. Copilot, prompt engineering) | No | A direct commercial investment, not levy eligible |
| Self-paced online short courses | No | Commercial purchase |
The rule of thumb: the apprenticeship levy funds apprenticeships and apprenticeship units, which are the structured, assessed, capability-building routes. Short courses and workshops are valuable, but they are paid for directly, never described as levy or government funded.
How to use up your apprenticeship levy before it expires
Unspent levy expires, so the funds you do not commit are simply lost back to the government. Here is the practical sequence to put yours to work on AI:
- Check your balance. Log in to your apprenticeship service account and see how much levy is sitting there, and how much is close to expiring.
- Map it to AI programmes. Work out what your balance could fund. Our AI Levy Maximiser does this in about 30 seconds: enter your pay bill and see how many AI apprentices or AI Leadership Units your levy covers.
- Pick the people. Choose the teams who would benefit most, AI apprenticeships work for existing staff in any department, not just IT.
- Enrol before the deadline. Commit the funds to a start date so they are no longer "use it or lose it". Most cohorts can begin within weeks.
- Track and repeat. Your levy tops up monthly, so build a rolling plan rather than a one-off spend.
What if you do not pay the levy? Funding for SMEs
In other words, the apprenticeship levy is not just for big employers. An SME can put a member of staff through a full AI & Automation apprenticeship for little or nothing. Check your numbers or read the detail on levy-funded AI training.
Why this matters now
AI adoption is racing ahead of AI skills. UK business AI use has climbed sharply, yet 97% of organisations report an AI skills gap and two in three employees have had no formal AI training. Your levy is the cheapest way to close that gap in your own organisation, and it is money you have already paid. See the full picture in the TESS AI Adoption Index.
Frequently asked questions
Can I use the apprenticeship levy for AI training?
Yes. Your apprenticeship levy funds AI apprenticeships, such as the AI & Automation Practitioner Level 4, and the Level 5 AI Leadership Units. It does not fund standalone short courses or workshops, which are a direct commercial investment. The structured, assessed apprenticeship routes are levy funded.
Is AI training levy funded?
AI apprenticeships and apprenticeship units are levy funded. One-day workshops and self-paced short courses are not, they are paid for directly. The simple test is whether the training is an apprenticeship or apprenticeship unit; if it is, the levy covers it.
How do I use up my apprenticeship levy before it expires?
Check your balance in the apprenticeship service, map it to levy-eligible AI programmes (our AI Levy Maximiser does this in 30 seconds), choose the staff to enrol, and commit the funds to a start date before they expire. Build a rolling plan, since your levy tops up monthly.
Can SMEs that do not pay the levy fund AI training?
Yes. Non-levy employers access government funding for AI apprenticeships. For staff aged 25 and over you contribute about 5% (around £900 on an £18,000 Level 4), and from August 2026 apprentices under 25 are 100% government funded.
Can the levy pay for Microsoft Copilot or prompt-engineering training?
Not as a standalone workshop, those are commercial. But the same skills are taught and assessed inside the levy-funded AI & Automation apprenticeship, where your team builds with Copilot and other tools against real work over the programme.
Put your levy to work on AI
See exactly what your levy could fund in 30 seconds, then book a call to map it to your team. No pitch, just a clear plan for funds you have already paid.
Funding guidance is for general information and depends on your exact circumstances, pay bill and current Skills England rules. We will confirm your real funding position on a call.
Last updated: 19 June 2026