In January, Sadiq Khan said that without responsible planning, AI could usher in a “new era of mass unemployment” in London.
But the Mayor’s warning wasn’t alarmist. He instead highlighted the technology’s transformative potential and announced a new London taskforce on AI and the future of work, bringing together leaders from government, business and the tech sector.
The goal is to harness AI as a superpower for positive transformation and job creation, strengthening the capital’s workforce and global competitiveness.
That ambition reflects what Londoners are already experiencing on the ground. More than half (56%) of workers in the capital expect AI to affect their jobs within the next 12 months, according to City Hall polling. This is a sign not only of rapid change, but of how quickly the technology is becoming embedded in everyday working life.
Investment patterns reflect AI’s dominance
Investment is rising to match that momentum. Our latest Venture Pulse report shows that in the final three months of 2025, 350 investments were completed in London-based start-ups and scale-ups - a 76% increase from the previous quarter. Global investors continue to back the UK as a destination for growth, with London firmly at the centre of that confidence.
Of those London deals, 210 were with firms in the AI and machine learning space. In other words, three fifths (60%) of all venture capital investments in the capital were AI-related.
And it’s not just external investors leaning in. Our annual Private Enterprise Barometer shows that among private firms in London, AI came out as the most important area for future investment. When asked about the biggest opportunities AI presents, nearly two thirds of privately owned businesses (64%) pointed to better decision-making, while 61% highlighted efficiency and productivity gains.
The UK’s AI momentum is clearly capturing business owners’ and investors’ attention, particularly in its capital. The opportunity now is to translate that confidence into lasting gains across the UK from supporting high-quality jobs to stronger wages.
Investment is growing and so must skills
Yet for all the capital flowing into AI companies, and the growing investment by businesses into their own AI capabilities, we would be remiss to ignore a widening skills gap.
If there is one statistic that stands out, it is that almost three quarters (73%) of people in the UK have had no AI training, according to research by KPMG and the University of Melbourne.
At a time when AI is reshaping roles across sectors, that gap highlights the scale of the task ahead but also the opportunity to equip people with the skills they need to thrive.
To make this wave of investment truly sustainable, we need to strengthen the talent pipeline and ensure AI skills are practical, accessible and embedded across the workforce. When more people can confidently and responsibly use these tools, the benefits of AI can be shared widely across industries and communities.
Encouragingly, progress is already well under way. The government has confirmed it is training 7.5 million workers, a fifth of the UK workforce, in essential AI skills over the coming years. From April, new short courses for businesses in areas such as AI and digital skills will launch, helping to give people the capabilities they need for the jobs of the future.
Making AI work for every Londoner
AI education should focus on making AI literacy a basic skill for everyone, not just future tech experts. The education system, businesses and society need to work together to ensure school leavers and young people entering the workforce are prepared to use AI tools in any career, from healthcare to construction.
We should also enable those already employed to pursue new career pathways by offering flexible, accessible training that fits around their work and family commitments, ultimately giving more people access to greater opportunities.
If underrepresented groups are excluded from AI skills development, we risk deepening inequality in our economy, meaning Londoners will not achieve their full potential which is bad news for not just London, but the wider UK.
The business and advisory community has a big role to play. For example, our firm’s four-year Technology Apprenticeship, alongside our wider apprenticeship programmes, allow school leavers to earn while they learn, working with AI and other advanced technologies from day one. It is one practical way of widening access to high-growth careers and ensuring opportunity is not limited to traditional routes.
London’s Inclusive Talent Strategy, the capital’s new workforce plan, also puts future skills at its centre, recognising that inclusive growth depends on preparing people for the jobs of tomorrow.
There is no denying that the AI revolution is well and truly under way. The question now is whether we use it to widen opportunity and lift productivity in every London borough, and in turn across every region of the UK, or allow a growing skills gap to hold that progress back.
Anna Purchas is Office Senior Partner at KPMG UK in London
