AI apprenticeships are one of the most cost-effective ways to build in-house capability — and in many cases, they’re fully funded through the Apprenticeship Levy.
Whether you’re a levy payer or not, there are clear, structured ways to access funding and invest in your workforce without large upfront costs.
In short:
- Levy-paying employers can use existing funds to cover training
- Non-levy employers typically pay just 5% of the cost
- Funding covers training and assessment (not salaries)
- Multiple employees can be trained using levy funds
- Funds expire if not used — so timing matters.
What is the Apprenticeship Levy and how does it work?
The Apprenticeship Levy is a UK government scheme designed to fund apprenticeship training.
If your organisation has an annual payroll of over £3 million, you’ll pay 0.5% of that into a digital levy account. These funds can then be used to pay for apprenticeship training and assessment.
The key point:
If you’re already paying the levy, you’ve already set aside budget for training — it’s just about using it.
Levy funds are topped up by the government and must be used within a set timeframe, or they expire.
How much do AI apprenticeships cost?
Apprenticeship training costs are set by funding bands, meaning pricing is standardised and transparent.
Here’s an indicative overview of AI and data-related apprenticeship costs:
| Programme | Level | Typical funding band | Employer cost (levy payer) | Employer cost (non-levy payer) |
|---|
| AI Champion | Level 3 | Up to £9,000 | £0 (covered by levy) | ~£450 |
| AI and Automation Practitioner | Level 4 | Up to £18,000 | £0 (covered by levy) | ~£900 |
| AI-enabled Data Engineer | Level 5 | Up to £24,000 | £0 (covered by levy) | ~£1,200 |
These figures are indicative and may vary slightly depending on programme specifics.
What does the funding cover?
Apprenticeship funding is designed to cover the full cost of training and assessment.
This includes:
- Structured learning and course delivery
- Ongoing support from training providers
- Assessment and end-point evaluation
- Learning materials and resources
It does not include:
- Employee salaries
- Travel or additional expenses
In short: you’re investing in development, not paying for training upfront.
What if we’re not a levy payer?
If your organisation doesn’t pay the Apprenticeship Levy, you can still access funding through co-investment.
This means:
- The government covers 95% of training costs
- You pay just 5%
This makes apprenticeships one of the most accessible ways to upskill your workforce, even for smaller organisations.
Can levy funds be used for multiple employees?
Yes — and this is where apprenticeships become particularly powerful.
Levy funds can be used to train multiple employees across different teams and roles, as long as the funds are available in your account.
This allows organisations to:
- Build capability at scale
- Support different departments simultaneously
- Align training with wider business goals
Is there a deadline to use levy funds?
Yes — levy funds expire 24 months after they enter your account, or after 12 months from 1 August 2026.
If they’re not used within that time, they are returned to the government.
This is why many organisations choose to invest in apprenticeships — to make sure they’re using funds they’ve already paid.
What AI apprenticeship programmes are available?
Kaplan offers a range of AI and data-focused apprenticeships designed to support different business needs.
Examples include:
- AI Champion (Level 3)
Build awareness and support adoption across teams - AI and Automation Practitioner (Level 4)
Improve efficiency through automation and process improvement - Data Engineer (Level 5)
Develop infrastructure to support AI and data initiatives
Each programme focuses on practical, job-ready skills that can be applied immediately in the workplace.
What about AI leadership training for senior teams?
Alongside core AI and data apprenticeships, organisations can also use funding to develop AI leadership capability - helping senior teams turn AI investment into real business outcomes.
Kaplan’s new Level 5 AI Leadership units are designed for decision-makers who need to move beyond experimentation and lead AI adoption strategically.
These programmes focus on three key areas:
- AI strategy and opportunity
Helps leaders identify where AI can deliver real return on investment, build business cases, and align AI initiatives with organisational goals - AI adoption, procurement, and governance
Equips teams to evaluate AI tools safely, manage risk, and ensure compliance with legal and ethical standards - AI delivery and organisational transformation
Focuses on embedding AI into day-to-day operations, supporting teams through change, and driving long-term productivity gains
In simple terms:
- Practitioners build AI solutions
- Leaders ensure those solutions deliver value
These shorter, flexible programmes are particularly useful for organisations looking to:
- Strengthen decision-making at leadership level
- Reduce risk around AI adoption
- Improve the success rate of AI initiatives
Why are apprenticeships a cost-effective way to build AI capability?
Compared to hiring externally or investing in one-off training, apprenticeships offer a more sustainable approach.
- Lower upfront cost (often fully or mostly funded)
- Skills are developed in real business contexts
- Long-term capability is built internally
- Reduced reliance on expensive recruitment.
It’s not just about saving money — it’s about making smarter, longer-term investments.
Build AI capability without the cost barrier
Funding shouldn’t be a barrier to developing your workforce. With the right support, apprenticeships offer a clear, affordable route to building AI capability.
Explore AI and data apprenticeship programmes
Find out more about funding apprenticeships
FAQs
Are AI apprenticeships really free?
For levy-paying employers, training is fully funded through the levy. Non-levy employers typically pay just 5% of the cost.
Can I use levy funds for existing employees?
Yes. Apprenticeships are commonly used to upskill existing staff, not just hire new talent.
How many apprentices can we fund?
As many as your levy funds (or budget) allow. There’s no strict limit.
What happens if we don’t use our levy funds?
They expire after 24 months and are returned to the government.
Is there a minimum contract or commitment?
Apprenticeships are structured programmes, typically lasting 12–24 months depending on the level.