Millions of families could see warmer homes and lower energy bills, as ministers back ten new AI innovations which will help make the UK a clean energy superpower through the UK Government’s Plan for Change.
The ten finalists for the second round of the Manchester Prize include revolutionary AI innovations that could transform how Britain tackles climate change, while cutting costs for working families.
Among them is a system that utilises AI to design bespoke panels, converting bricks into radiators to warm homes from the outside, thereby maintaining a comfortable indoor temperature throughout the year. This system also simplifies the installation of heat pumps in older homes while reducing costs.
Another team uses AI-enabled drones to map heat loss across entire neighbourhoods, helping councils identify exactly which homes need urgent insulation upgrades, which could save households hundreds on their annual energy bill.
How the Manchester Prize helps improve critical industries
The Manchester Prize, funded by the Department of Science, Innovation, and Technology and delivered by Challenge Works (part of the Nesta group), rewards UK-led AI innovations that support the public good, including economic growth, improved public services, and contribute to a just transition to net zero.
Secretary of State for Science, Innovation and Technology, Peter Kyle, explained: “AI is opening up transformative new ways to tackle climate change and support the UK’s ambition to become a clean energy superpower.
“This includes using the technology to keep our homes warm, while also supporting projects which will use AI to slash carbon emissions in our cement and steel industries, which account for 16% of global emissions.”
Energy Secretary Ed Miliband added: “Clean power is the economic opportunity of the 21st century, and these projects will help households and businesses take advantage of lower bills, in a smarter and faster way than ever before.
“From specially designed radiator walls to a smart power grid that flicks on and off as we need, AI has the potential to help every home in Britain to feel the benefits of warmer homes and homegrown clean energy.”
Training and scaling the new AI innovations
The ten teams behind the advanced AI innovations have each received £100,000 in seed funding, plus £60,000 worth of compute credits to help train and scale their models.
They will also benefit from non-financial support, including investor readiness guidance and access to a network of experts, positioning them for success in the pursuit of the £1m Grand Prize in spring 2026.
The winning solution will demonstrate not only technical innovation but also an evidenced roadmap to near-term adoption, scale, and impact.
These shortlisted finalists will now follow in the footsteps of Polaron – the inaugural winners of the Manchester Prize, which accelerates the development of advanced materials used in all aspects of life, from wind turbines to electric batteries.
The winning innovation will be announced early next year, taking home the grand prize of £1m to bring their cutting-edge ideas to life.
Building on the UK’s AI breakthroughs
These innovations build on the AI Opportunities Action Plan, the UK government’s blueprint to accelerate the use of AI across the economy.
By harnessing cutting-edge solutions like these, AI is driving breakthroughs in industry, transforming public services, and improving the lives of citizens across the country.
