New research by London & Partners shows that over three-quarters (77%) of international business leaders in the artificial intelligence (AI) sector consider London to be more supportive of AI development than other leading AI hubs. These findings came as international delegates gathered in the capital for London Tech Week, Europe’s hottest tech event, in June.
Nearly half (45%) of respondents cited supportive government incentives and policies tailored for AI development as London’s key advantage, while 44% highlighted access to international markets and global business opportunities as another significant benefit of being located in the capital.
Location is, unsurprisingly, a top consideration for international business leaders at AI companies, with nine out of ten (90%) surveyed stressing the importance of being located in a city that actively addresses factors which include the likes of data privacy and security (51%), as well as infrastructure and scalability (45%).
The good news for London is that it ranked highly in both areas, with 86% of respondents believing it will be effective in helping address data privacy and security in the next 12 months and 83% confident in the capital’s infrastructure and scalability.
When asked why London will be effective in these areas in the next year, nearly half (46%) of respondents said that the capital has a well-established infrastructure and technological ecosystem conducive to AI innovation and growth, while 43% said that London has access to a diverse and highly skilled talent pool in the AI field
Additionally, 85% of decision-makers surveyed at international AI companies said that they are very confident in the capital’s ability to attract and retain talent over the next twelve months.
Sadiq Khan, Mayor of London, said:
“London is a world-leading centre for technology and talent, and fast becoming one of the most important centres for AI businesses globally.
“The world’s leading players in the sector are investing in international headquarters across our city. These AI hubs will bring industry experts together to innovate and collaborate and provide major opportunities for Londoners to access the jobs and opportunities of the future.
“AI will play a major role in both our society and economy, something all policy makers have to grapple with as we build a better and fairer London for all.”
Also commenting on the findings, Janet Coyle CBE, Managing Director of Grow London at London & Partners, said:
“This research shows that London is at the forefront of supporting the responsible development of AI. As the number one tech hub in Europe and second in the world, we are already welcoming the likes of Microsoft AI, OpenAI, and Google DeepMind, all of whom have chosen London as a location for their international headquarters.”
Mike Mattacola, Chief Business Officer of CoreWeave, who recently announced the company’s expansion to London, said:
“We’re incredibly excited to have launched our European headquarters in London as part of our broader expansion into the continent. London was an easy strategic decision for CoreWeave due to the city’s focus on fostering AI development, immense talent pool, access to a world-leading financial sector and close proximity to AI labs, developers, and enterprise customers across the UK. Our launch in London will allow CoreWeave to capitalise on the significant demand for our AI infrastructure both in the UK and across Europe.”
Jules Persaud, Chief Commercial Officer at Epidemic Sound, who also recently opened an office in the capital, said:
“London is one of the world’s foremost creative hubs and a cultural force across art forms including music and content creation.
“It’s home to thousands of leading professional content creators – who we’re excited to empower with AI-powered soundtracking – as well as an abundance of music talent – that we can’t wait to collaborate with to offer an innovative, equitable way of working. London was one of three chosen cities for our 2024 global brand campaign, and opening an office there provides a significant opportunity to expand our presence in such an important global market.”
When asked how London can maintain its attractiveness for international AI companies over the next twelve months, almost one-third (32%) of respondents highlighted the need for strong infrastructure and a robust technological ecosystem, while 29% pointed to continued investment in AI research and development.
Find out more about London & Partners at www.londonandpartners.com