New research by London & Partners shows that over three-quarters (77%) of international business leaders in the AI sector consider London to be more supportive of AI development than other leading AI hubs. These findings come as international delegates gather in the capital for London Tech Week, Europe’s hottest tech event.

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 twelve 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.

As London Tech Week approaches, AI is attracting more global attention. This year's event is set to spark important discussions with top figures from tech, business, and politics attending.

Mayor of London, Sadiq Khan, 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, and 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.

“The agenda at this year’s London Tech Week will cover the latest developments and announcements in AI. As more companies choose London for its AI credentials, it is clear that the city has all the right ingredients to support them in developing AI technology.”

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.”

David Monaghan, Festival Director, London Tech Week, said: “AI is going to be centre stage at London Tech Week so it’s no surprise to see these findings. We’ll be celebrating the city’s credentials as a base for AI-powered tech businesses, welcoming speakers from giants like Google DeepMind as well as London-based unicorns like Synthesia and Wayve. It’s even more exciting to think that the next big name in AI might be among the thousands of startups and scaleups, from all over the world, who will converge in London for this event.”

Russ Shaw CBE, Founder of Tech London Advocates and Global Tech Advocates, said: “For the London tech sector to flourish, it is vital to maximise support for its most innovative tech verticals. This research, which showcases strong results in both private and public policy with regards to AI, will act as a signal to global tech leaders that London is a hotbed for the development of advanced tech. With London Tech Week fast approaching, this is a strong demonstration for the international delegations which will descend on the capital of the scale and ambition of the tech scene we have here.”

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.

To learn more about London & Partners, visit www.londonandpartners.com. 

Notes to editors

London & Partners 

London & Partners is the business and destination agency for London. Our mission is to create economic growth that is resilient, sustainable, and inclusive. We are a not-for-profit company and operate as a social enterprise, half funded by the Greater London Authority (GLA) and half from other sources including our portfolio of commercial ventures. For more information, visit www.londonandpartners.com. 

Grow London 

Grow London, is run by London & Partners and offers a range of programmes and initiatives to drive business growth in London and internationally. These include Grow London which supports global businesses set up in London, Grow London Global which helps London-based businesses expand into international markets, and the Innovation Fellowship programme which works to support and drive corporate innovation. For more information, visit www.grow.london. 

Methodology

This research was conducted by Opinion Matters on behalf of London & Partners to explore the perspectives and preferences of C-Suite executives involved in businesses developing or utilising Artificial Intelligence (AI). The study specifically focused on individuals with decision-making responsibilities regarding the physical location of their business, encompassing 750 respondents from France, India, and the United States of America (USA). Data collection took place between the 17th of May 2024 and the 22nd of May 2024. Opinion Matters abides by and employs members of the Market Research Society (MRS) and follows the MRS code of conduct and European Society for Opinion and Market Research (ESOMAR) principles. Opinion Matters is also a member of the British Polling Council.