A provider delivery guide for the Level 5 apprenticeship unit covering AI strategy, governance, procurement, risk management, and workforce transformation. Approved by Skills England on 17 March 2026. Funding rate to be confirmed in April 2026.
Published: April 2026. Based on the Skills England AU0002 technical specification (Version 1.0, approved 17/03/2026). Funding rate subject to ESFA confirmation.
AU0002 targets employed adults aged 19 and over who are in, or aspiring to, leadership roles with responsibility for setting direction, governance, and oversight of AI use in their organisation. The unit is explicitly for individuals who have — or are moving towards — autonomy over technology investment decisions and organisational change.
The unit has five learning outcomes. Each maps to a distinct function area and carries a cluster of knowledge (K) and skills (S) references from the occupational standard.
Make evidence-based investment and procurement decisions for AI tools, platforms and suppliers, applying fair evaluation criteria and addressing long-term risks — including vendor lock-in, contractual assurance, data/IP terms, resilience, and exit planning.
Sponsor and operate a governance framework that safeguards lawful, ethical and responsible AI use, embedding ethical principles, accountability, transparency, and assurance into organisational decision-making.
Oversee AI risk management within the organisation's enterprise risk framework, ensuring audit readiness, effective incident response, and continuous monitoring of AI-related risks including model drift, bias, and security vulnerabilities.
Lead and coordinate cross-functional delivery of AI-enabled organisational change, including assessing workforce impacts, engaging stakeholders, and supporting targeted upskilling and reskilling, while balancing innovation with practical implementation constraints.
Represent the organisation credibly in external AI discussions with regulators, partners, sector bodies, and the public. Anticipate and prepare for evolving AI regulation by monitoring regulatory change, embedding compliance readiness, and maintaining up-to-date knowledge of emerging AI technologies.
The Skills England specification maps each function area to specific K&S references from the occupational standard. Use this table when designing your curriculum to ensure complete coverage.
AU0002 draws K&S from four occupational standards. Providers already delivering any of these full apprenticeships have a natural curriculum base to build on.
If your APAR scope includes Senior Leader (ST0480) or Chartered Manager (ST0272), your existing curriculum will have significant overlap with AU0002. Review K1–K4 and S2–S5 coverage in your current materials first.
AU0002 sits under SSA Tier 1: 15 (Business, Administration, Finance and Law) and Tier 2: 15.3 (Business management). Confirm this SSA code is within your approved APAR scope before applying for unit delivery authorisation.
Skills England has stated the delivery hours and funding rate for AU0002 will be confirmed in April 2026. Do not commit to employer pricing or learner start dates until these are published.
AU0002 contains 15 knowledge items (K1–K15) and 14 skills items (S1–S14). Systematically review your existing Senior Leader or AI practitioner curriculum against each statement.
Unlike full apprenticeships, AU0002 has no End-Point Assessment. The provider designs and delivers a Skills Test — the employer then validates the result.
The employer must validate the Skills Test result to confirm the learner has been successful. Build this into your end-of-unit process.
Units use a separate ILR programme type from full apprenticeships. Confirm your MIS supports the new code before taking a start.
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AU0002 is a genuinely new type of funded training offer that does not exist in the current apprenticeship catalogue. Position it correctly in employer conversations.
What is apprenticeship unit AU0002?
AU0002 is a Level 5 apprenticeship unit titled AI Leadership – Developing AI Strategy, approved by Skills England on 17 March 2026. It is a short, standalone levy-funded training course for employed adults aged 19+ in or aspiring to leadership roles. Unlike a full apprenticeship, there is no OTJ requirement, no EPA, and no minimum 12-month duration. Learners complete a provider-designed Skills Test and their employer validates the result.
Does AU0002 require off-the-job training?
No. The 20% off-the-job requirement that applies to full apprenticeship standards does not apply to apprenticeship units. This makes AU0002 significantly more viable for senior employees whose working patterns cannot accommodate a fixed OTJ commitment. Delivery is expected to range from 1 to 16 weeks, with hours confirmed by Skills England in April 2026.
How is AU0002 assessed?
The unit uses a provider-delivered Skills Test. There is no End-Point Assessment organisation. The training provider designs and administers the test; the employer validates the result to confirm the learner has been successful. An optional extended route (independent external assessment) is available where employers consider it appropriate — for example in regulated occupations.
Which occupational standards does AU0002 draw from?
AU0002 draws its knowledge and skills statements from four occupational standards: AI and Automation Practitioner (ST1512 V2.0), Chartered Manager – Degree (ST0272 V1.1), Machine Learning Engineer (ST1398 V1.0), and Senior Leader (ST0480 V1.2). Providers already delivering Senior Leader or Chartered Manager programmes will have the most curriculum overlap.
When will the funding rate and delivery hours be confirmed?
Skills England has stated that the delivery hours and funding rate for AU0002 will be published in April 2026, at which point the unit will become available for delivery. Do not commit to employer pricing or learner starts until these are published. Monitor the official AU0002 page on the Skills England website for the confirmed figures.
Can non-levy employers use AU0002?
Yes. Like full apprenticeship standards, apprenticeship units are eligible for the standard 95/5 co-investment model for non-levy-paying employers — the government covers 95% of training costs and the employer contributes 5%. Levy-paying employers draw funding directly from their digital apprenticeship service account. The employer must reserve the unit in DAS before delivery begins.
TIQ-plus is being updated to support apprenticeship unit starts alongside full programme management — covering unit ILR codes, Skills Test tracking, employer validation workflows, and funding claim management.