Senior leaders across the UK are asking the same question: “Where should we actually play with AI?”
This guide explains the three units in plain English. When you’re ready to compare them side by side or check funding, see our AI Leadership apprenticeship units hub.
In April 2026, Skills England answered by replacing the single AI Leadership unit (AU0002) with three focused Level 5 units, giving organisations much more flexibility. This guide explains exactly what changed, what each unit covers, who they are for, and how TESS Group’s stackable AI Leadership Pathway helps you get the maximum value with the least disruption.
In This Guide
- Background: Why Three Units, Not One?
- AU0009: AI Strategy & Opportunity
- AU0010: AI Adoption, Procurement & Governance
- AU0011: AI Delivery & Organisational Transformation
- Side-by-Side Comparison
- Who Are These Units For?
- Funding Explained
- The TESS AI Leadership Pathway
- Which Unit Should You Start With?
- Frequently Asked Questions
- Next Steps
1. Background: Why Three Units, Not One?
When Skills England launched the first wave of apprenticeship units in March 2026, the AI Leadership offering came as a single unit: AU0002 (AI Leadership, Developing AI Strategy). It covered everything from identifying AI opportunities to governing AI deployments to leading organisational transformation.
On 21 April 2026, Skills England withdrew AU0002 and replaced it with three separate units. The reasoning is straightforward: AI leadership is not a single skill. An organisation that needs help with AI governance has a fundamentally different need from one that needs help with AI strategy or AI transformation. By splitting the unit, Skills England has given employers the flexibility to target exactly what they need.
“When we designed our curriculum for the original AU0002, we built it in three distinct blocks: strategy, governance, and transformation. They are different disciplines that happen to live under the same umbrella. Skills England has now formalised that separation, and it makes the learning journey much cleaner for employers who want to target specific gaps.”
Before: AU0002
- Single unit covering everything
- One funding band: £750
- All-or-nothing enrolment
- Broad scope, limited depth
- One size fits all learners
After: AU0009 / AU0010 / AU0011
- Three focused, specialist units
- Three funding bands: up to £2,250
- Pick one, two, or all three
- Deep focus per discipline
- Right unit for the right leader
The practical upside for employers is significant. You can now enrol leaders on just the unit they need, combine two, or complete all three as a comprehensive pathway. And because each unit carries its own £750 funding allocation, the total available funding per learner has increased to £2,250.
2. AU0009: AI Strategy & Opportunity
AI Strategy & Opportunity
This is the starting point for most organisations. AU0009 focuses on helping leaders understand where AI creates value and how to build a strategy around it. It answers the question every boardroom is asking: where should we use AI, and how do we make a business case for it?
What you will learn from AU0009
Ideal for: MDs, CEOs, and senior leaders who need to set AI direction for their organisation. Also suited to strategy directors and transformation leads who need to build the AI business case.
View AU0009 on Skills EnglandWhat leaders actually deliver from AU0009
- AI Strategy on a Page, signed off by the board.
- Opportunity scan, a ranked list of 5 to 8 AI use cases sized by impact and feasibility.
- Capability map, what your business needs to build, buy or partner for to deliver the strategy.
3. AU0010: AI Adoption, Procurement & Governance
AI Adoption, Procurement & Governance
This unit addresses what is arguably the most pressing concern for regulated industries and risk-conscious organisations: how do you buy, govern, and manage AI responsibly? It covers the frameworks, policies, and decision-making processes leaders need to adopt AI without exposing the business to unacceptable risk.
What you will learn from AU0010
Ideal for: Compliance leads, risk directors, procurement managers, IT directors, and any senior leader responsible for how AI is adopted and governed within the organisation.
View AU0010 on Skills EnglandWhat leaders actually deliver from AU0010
- AI Governance Framework, the policies, controls and audit trail your AI deployments need.
- Procurement playbook, the questions to ask vendors, the clauses to demand, the red flags to spot.
- Risk register, the named AI risks your operation now manages with named owners.
4. AU0011: AI Delivery & Organisational Transformation
AI Delivery & Organisational Transformation
Strategy is worthless without execution. AU0011 focuses on the practical side of AI leadership: how to plan and manage AI implementation projects, lead the workforce through change, measure whether AI is delivering value, and scale successful pilots across the organisation.
What you will learn from AU0011
Ideal for: Transformation directors, operations managers, HR directors, L&D leads, and project managers responsible for making AI work in practice across the organisation.
View AU0011 on Skills EnglandWhat leaders actually deliver from AU0011
- Transformation roadmap with ROI metrics, a 12-month plan with measurable milestones.
- Adoption playbook, the change-management approach to get the rest of the business onboard.
- Workforce and capability plan, where to upskill, where to hire, where to redeploy.
5. Side-by-Side Comparison
How delivery works: every unit is 30 guided learning hours of live workshop delivery — pure workshops, with no coaching, no mentoring and no End-Point Assessment (provider-assessed). Take a unit on its own or stack all three.
“We put our Head of Operations through AU0011 and our CEO through AU0009. Within six weeks we had a signed AI strategy and a clear governance line, something we had been talking about for eighteen months.”
— Operations Director, UK manufacturing company (name withheld at client’s request)
Not sure which unit fits first?
Tell us about your leadership team and where you want to land in six months. We will recommend AU0009, AU0010 or AU0011 (or the stacked Pathway) in 15 minutes, no pressure to enrol.
Book a 15-minute fit call →6. Who Are These Units For?
All three units are designed for senior leaders and decision-makers. No technical or coding background is required. The typical profiles include:
Any employee who will develop genuine new skills through the units is eligible, regardless of seniority or length of service. The only requirement is that the learning is new to the individual, not just a repackaging of existing capability.
Quick eligibility check
Eligible
- ✓ Aged 19 or over
- ✓ Employed in England
- ✓ Existing employees upskilling
- ✓ Non-technical leaders
- ✓ Any seniority level
Not eligible
- ✗ Self-employed or freelance
- ✗ Career changers (new to role)
- ✗ Under 19 years old
- ✗ Already have equivalent skills
7. Funding Explained
The funding model is the same as the original AU0002, but applied to each unit individually:
Non-levy employers (annual pay bill under £3 million): each unit is 100% government funded. No employer contribution required. A learner completing all three units receives £2,250 in fully funded training at no cost to the business.
Levy-paying employers (annual pay bill over £3 million): each unit draws from your Growth and Skills Levy account. At £750 per unit, this is a highly efficient use of levy funds compared to full apprenticeships that may draw £10,000–£27,000 per learner.
How Payment Works
Each unit’s £750 funding is released in two milestones, 30% on programme start, 70% on achievement.
Funding total per learner across all three units: £2,250. SMEs (annual pay bill under £3m) pay nothing, government covers 100%. Levy payers draw from their Growth and Skills Levy account.
Levy payers (annual pay bill over £3 million): each unit draws from your Growth and Skills Levy account. At £750 per unit, this is one of the most efficient uses of levy funds available.
8. The TESS AI Leadership Pathway
While each unit can be completed independently, TESS Group delivers all three as a cohesive pathway called the TESS AI Leadership Pathway. It is structured as three stackable sprints, each building on the last:
The recommended order is Strategy first, then Governance, then Transformation. But this is flexible. If your organisation already has an AI strategy and needs help with governance, you can start at Sprint 2. If your priority is getting AI projects delivered, Sprint 3 is a valid entry point.
“The pathway design reflects how AI leadership actually works in practice. You start by understanding where AI creates value. Then you build the frameworks to adopt it safely. Then you lead the delivery and the organisational change. Each sprint produces a tangible output: a strategy document, a governance framework, a transformation roadmap. Leaders leave with artefacts they can use immediately.”
Delivery is live, expert-led, and virtual (via Zoom and Microsoft Teams). Each sprint runs over approximately 4–6 weeks with a commitment of a few hours per week plus dedicated workshop sessions. Employers can enrol individuals or cohorts, and we offer both open and private delivery options. View the full TESS AI Leadership Pathway programme page for delivery details, modules, and how to enrol.
9. Which Unit Should You Start With?
Here is a quick decision framework:
Start with AU0009 (Strategy) if your organisation is still deciding where and how to use AI. If you do not yet have an AI strategy, a clear understanding of where AI creates value, or a business case for AI investment, this is your starting point.
Start with AU0010 (Governance) if you are already using AI tools but lack formal governance. If your team is adopting ChatGPT, Copilot, or other AI tools without clear policies, oversight, or procurement frameworks, this unit addresses your most urgent risk.
Start with AU0011 (Transformation) if you have a strategy and governance in place but are struggling to deliver. If AI pilots are stalling, change management is not happening, or you cannot measure whether AI is delivering value, this unit focuses on execution.
Which roles map to which units?
AU0009 · Strategy
- Managing Director / CEO
- Strategy Director
- Chief Digital Officer
- Business Development Director
- Board Members
AU0010 · Governance
- Compliance Director
- Risk Manager
- IT Director / CTO
- Procurement Manager
- Data Protection Officer
AU0011 · Transformation
- Transformation Director
- Operations Manager
- HR Director
- L&D Manager
- Programme / Project Manager
Many organisations enrol different leaders on different units, building AI capability across the entire senior team.
What your leaders walk out with
Nine named outputs across the three units. Real deliverables, signed off in your business, not exam papers.
AI Strategy on a Page
AI Governance Framework
Transformation roadmap with ROI metrics
Opportunity scan, 5–8 ranked use cases
Procurement playbook for AI vendors
Adoption & change-management playbook
Capability map: build, buy or partner
Risk register with named owners
Workforce & capability plan
10. Frequently Asked Questions
What replaced the old AU0002 unit?
AU0002 (AI Leadership, Developing AI Strategy) was withdrawn on 21 April 2026 and replaced by three new Level 5 units: AU0009 (AI Strategy & Opportunity), AU0010 (AI Adoption, Procurement & Governance), and AU0011 (AI Delivery & Organisational Transformation). The new units offer up to £2,250 total funding per learner versus £750 under AU0002, and allow employers to target specific skill gaps rather than commit to a single broad unit.
Do I need to do all three units?
No. Each unit is standalone and self-contained. You can enrol on one, two, or all three, in any order. Many organisations start with the unit that addresses their most pressing need, then stack the others as the AI agenda matures. Others stack all three from the outset to build a complete leadership capability across strategy, governance, and transformation.
Which unit should my organisation start with?
If you do not yet know where AI fits in your business, start with AU0009 (Strategy & Opportunity). If AI is already in use and risk or governance is the live conversation at the board, start with AU0010 (Governance). If you have the strategy but adoption has stalled, start with AU0011 (Delivery & Transformation). The decision matrix above summarises the choice.
How much does it really cost?
Each unit attracts £750 of apprenticeship funding. For SMEs (under £3m payroll), this is 100% covered by government, you pay nothing. For levy-paying employers, it draws from your existing Growth and Skills Levy account, again, nothing out of pocket. Stacking all three units gives a total funded value of £2,250 per learner.
Can we mix and match units across different leaders?
Absolutely, and this is one of the most powerful applications. A typical pattern: CEO on AU0009 (Strategy), Compliance or Risk Director on AU0010 (Governance), Operations or Transformation Lead on AU0011 (Delivery). Each leader gets the specific skill set they need, and the combined capability strengthens AI readiness across the leadership team.
Is there an End-Point Assessment?
No. Like all apprenticeship units, AU0009, AU0010, and AU0011 are provider-assessed with employer validation, not by an independent EPAO. This means faster completion and lower bureaucracy than full Level 5 apprenticeships, while preserving the regulatory quality bar that Skills England standards demand.
When can we start?
All three units became available on 28 April 2026. TESS Group runs new cohorts on a rolling basis, typically every 6 to 8 weeks. Each unit takes a minimum of 30 guided learning hours, which we usually deliver as a 4 to 6 week sprint of live sessions, workshops, and applied workplace project work. We can also build a closed cohort to your timetable for groups of 6 or more.
How does this connect to TESS Group’s other AI programmes?
The AI Leadership Pathway sits at the top of the TESS AI skills stack. Below it, the AI & Automation Practitioner (Level 4) builds hands-on AI capability for practitioners. The AI & ML Fellowship (Level 6) develops deep technical specialists. When your leadership team completes the AU0009/10/11 pathway, they land in an organisation where every layer is building AI skills through a connected curriculum. See also our Skills England 2026 priority-sectors guide for how the units map to the new sectoral skills needs assessments.