WELSH businesses are set to benefit from a £2.1 million funding package aimed at helping small and medium-sized enterprises adopt artificial intelligence in an ethical and practical way.

The investment, announced by the Welsh Government, is designed to support SMEs, entrepreneurs and microbusinesses across Wales to use AI to improve productivity, boost innovation and strengthen competitiveness.

As part of the package, £600,000 will be allocated to the Business Wales service to develop and deliver a dedicated AI awareness and adoption programme. The work will build on recommendations from recent reviews into SME productivity and the use of artificial intelligence.

A further £500,000 will be used to support the tourism and events sectors, including an AI “pollination project” delivered in partnership with specialists from the Hartree Centre Cardiff Hub and Cardiff University’s Digital Transformation Innovation Institute. The scheme aims to accelerate the take-up of AI tools among event organisers and tourism businesses.

Up to 1,000 tourism microbusinesses and SMEs are expected to benefit from in-person workshops focused on practical AI skills for digital marketing and content creation.

An additional £1 million will be invested through the Flexible Skills Programme to create a new AI upskilling offer. The scheme will focus on closing digital skills gaps and supporting inclusive growth, with employers contributing 25 per cent of AI training costs and 50 per cent for other Flexible Skills Programme courses.

One company already making use of artificial intelligence is Swansea-based Something Different Wholesale. The giftware business, which employs seventy-five staff and serves more than 12,000 business customers worldwide, uses AI to analyse data, gain market insight, automate routine tasks and enhance customer services. The company is also launching a new global website using AI-powered translation tools.

Founder Jane Wallace-Jones said AI was advancing rapidly and that businesses which adopted it effectively would gain a competitive edge, but warned many SMEs lacked in-house expertise.

She said the funding would help Welsh businesses access high-quality training, improve productivity and support growth, innovation and job creation.

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said the funding built on showcases of Welsh innovation seen at recent national technology and investment events.

She said AI was already transforming the business sector and that the programme would help ensure SMEs across Wales were ready to make the most of emerging technologies in a responsible and inclusive way, while supporting the delivery of the AI Plan for Wales.

Skills Minister Jack Sargeant said the Welsh Government recognised the potential of AI to drive economic growth and was committed to helping businesses develop the skills needed for future success.

He added that the new funding would help bridge digital skills gaps and accelerate the responsible adoption of artificial intelligence across Wales’s rapidly evolving digital economy.

A PREVIOUSLY refused call to change holiday accommodation near a Pembrokeshire village which was not meeting the criteria to avoid the second homes council tax premium, to a residential care home, has now been allowed.

In an application to Pembrokeshire County Council, Ian Parker sought permission for a change of use of The Sycamores, Gelli Hill, Llawhaden, on the site of a former farm complex, from an eight-bedroom holiday let capable of supporting 16 guests, to a residential care home of six residents and 10 staff.

A previous application was refused by county planners in 2024 on the basis it had failed “to provide justification in order to support an identified need for a residential care home at this location”.

A supporting statement, through agent H.B. Tribe Chartered Engineer, said its previous use as a holiday let was available for 140 days and actually let for 70 days in any one year, below the-now 182-day level to avoid incurring a second homes council tax premium.

“Recent local press reports indicate that a number of providers of holiday accommodation have left the industry as they cannot meet this target and, if they continue, are therefore liable for a huge increase in taxation, putting up the rate for holiday makers who are unlikely to pay the additional sums. Demand will therefore fall.

“In 2023 The Sycamores did not meet this new threshold and therefore faced the increased cost of having to pay council tax, (with the premium as a second home) so hard business decisions had to be taken. The property cannot continue as a holiday let.”

It said the applicants, together with a third director, own and operate three care homes in Pembrokeshire and Ceredigion specialising in the care of adults with learning disabilities, employing some 95 staff as the clients require 24-hour care and some need one-to-one supervision at all times.

It concluded: “It is known that nationally the care system is struggling to meet the increasing demands that are being asked of it. This is no less true for those with learning disabilities as any other group of the population. Evidence has been submitted to show that there is a demand for further residential and respite care spaces in West Wales.

“The application property exists and will remain as it is. There is no new visual impact on the countryside.”

An officer report recommending approval for the latest application said: “The applicant in addressing the previous refusal of planning permission has provided information to demonstrate that there is substantial demand for the provision of new residential care beds from within Pembrokeshire, Carmarthenshire and Ceredigion.

“It is considered that the building is appropriate for the proposed use, given its current use as holiday accommodation.”

It also said concerns about potential increases in foul water drainage were already met by the potential capacity of the existing tourist accommodation.

The application was conditionally approved.

PLANS to convert a vandalised former Pembrokeshire town centre Chinese restaurant to a flat and bedsits are expected to be approved next week.

In an application recommended for approval the January 13 meeting of Pembrokeshire County Council’s planning committee, Mr S Sahin and Miss S Ahmed, through agent Hayston Developments & Planning Ltd, seek permission for a change of use of Grade-II-listed 20 Hamilton Terrace, Milford Haven from the former Mandarin Restaurant to one flat and eight bedsits, an amendment of an original scheme which included one extra bedsit.

The scheme is before committee rather than delegated to officers as it is recommended for approval despite being contrary to a policy of the development plan.

The application for the Mandarin follows a withdrawn scheme for three flats deemed invalid by council planners.

A supporting statement says: “The property has historically been in use as a Chinese restaurant on the ground floor with two flats on the upper floors of the building. The ground floor use of the building ceased some 10 years ago and currently lies vacant. Due to the lack of use of the building, it is in a very poor condition and has been the subject of unfortunate vandalism particularly to the interior of the building.”

It says that, after the previous scheme was withdrawn, the applicants have “since reviewed their position and now present revised applications to be considered by the council”.

It adds: “The clients have re-thought on what type of accommodation is needed and required in this part of Milford Haven.  It has been identified that the cheaper type of affordable housing for either workers or a single person is the most needed. Indeed, PCC Housing Need Register reflects this need, and this has also been confirmed by the local estate agents.”

It concludes: “The proposal is considered to put an important Grade-II-Listed Building back into beneficial use and would help to secure its long-term future. The proposal would represent a high-quality and sympathetic conversion and extension of the building, and which would make a positive contribution to the locality and conservation area status.”

An officer report recommending approval says one letter of objection was received raising concerns including potential impact on a neighbouring property and boundaries, and the discharge of the sewer under number 20.

It concludes: “The proposal is for the change of use of use with alterations and extensions to the building to create one self-contained flat and eight bedsits.  This would not accord [with policy] as it would involve the change of use of the ground floor to residential (C3) use in a Secondary Frontage.

“However, material planning considerations have been identified which are considered to be sufficient to justify a departure from the policy.”