London is a leading city for AI companies, according to the AI Cities Index. The capital has more AI companies than Tokyo, Seoul, Paris and Berlin combined. Only the San Francisco Bay Area has more. Together, London’s AI firms have raised $18bn in funding, the fourth-highest total for any city.
Economy
Research shows that 83% of London businesses using AI say it helps them work more efficiently, while 81% say it improves their ability to develop new ideas. In the south-east, 83% report better efficiency, three-quarters report more innovation, and around two-thirds say AI helps improve business results.
However, there is still room for growth. Across the UK, 44% of businesses already use AI, and another 41% plan to start within five years. Yet only 6% of businesses currently using AI have reached the point where it is changing how their organisation works.
Business size makes a difference. Companies with more than 100 employees are almost twice as likely to use AI as smaller businesses, at 67% compared with 36%.
London
London plans to develop a city-wide approach to digital systems and AI. The aim is to move public services beyond separate trials and reduce repeated work across organisations.
London’s chief digital officer, Theo Blackwell, has outlined a four-part plan covering digital infrastructure, teamwork between organisations, AI use and public trust.
The first part focuses on data, internet connections and computing systems. London plans to expand its Data for London Library, improve gigabit and mobile connections, and bring data centre growth in line with the capital’s plans to cut carbon emissions.
According to Blackwell, the Data for London Library now brings together 20,000 datasets about the city. Gigabit coverage has risen from four percent of homes and businesses in 2017 to 92 percent. London also has 99 data centre sites, with demand expected to rise as AI use grows.
Common technology across public services
Blackwell said London boroughs each spend between £7 million and £20 million a year on basic technology, including devices, security, hosting and networks. Many of these boroughs have the same needs.
London wants to work with the government’s local digital team to explore shared approaches to these technologies. It also plans to look at reusable tools for tasks such as booking appointments, checking identity, processing payments, completing forms and managing cases.
The city also plans to expand the role of the London Office of Technology and Innovation (LOTI). Since 2019, it has completed more than 60 joint projects and set up an AI network involving 200 officers.
GLA to establish central AI and technology function
London’s public services already use generative AI to handle housing complaints, review feedback from public consultations and support casework. Uses of AI in healthcare within the NHS include helping diagnose conditions, assessing how urgently patients need care and handling office tasks.
The Mayor will create a central team for AI, digital services, data and technology across the Greater London Authority (GLA) Group. This team will guide technology spending, find opportunities and help organisations coordinate their use of these tools. Existing teams will continue to carry out their work.
Drones already help Transport for London inspect infrastructure, the London Fire Brigade assess fires and the Metropolitan Police respond to incidents. Commercial trials of self-driving vehicles are also planned for 2026/27.
Building public trust
The final part of the plan focuses on public trust. It includes giving people a say in technology decisions, helping them understand AI and looking at how automation affects jobs.
London plans to help residents understand what AI systems can and cannot do. This work will build on an existing programme that helps people get online and use digital services.
Survey findings also show that people want clearer information and human responsibility when AI is used. More than eight in ten respondents said being able to reach a real person when needed was the most important factor in building trust. Meanwhile, 77% valued reliable services, human checks, and clear information about how their data is used.
