Microsoft has confirmed it bought a stake in a British artificial intelligence (AI) company just days after claiming the country was an unattractive place to do business.

The $2 trillion US company has invested in Builder.ai, a London-headquartered company developing tools to automate app design and coding.

News of the investment comes after Microsoft executives warned last week that Britain was becoming hostile to enterprise.

Microsoft president Brad Smith said the EU was a “more attractive place to start a business” after Britain’s competition watchdog decided to block its takeover of gaming giant Activision.

Founded in 2016, Builder.ai’s tools break down app development into building blocks, so non-technical businesses can put together apps with the assistance of automation tools and advice from professional engineers.

Microsoft has ploughed billions of dollars into a new wave of artificial intelligence technology, including a $10bn deal with Silicon Valley company OpenAI, which developed the ChatGPT chatbot.

The tech giant has also backed several UK artificial intelligence start-ups, including joining a £7m investment in data start-up Hazy earlier this year. 

Last year it invested in UK driverless car company Wayve and it has also backed AI chip company Graphcore.