London is quickly becoming the global epicenter for artificial intelligence (AI) growth. This is not just hype; a new study by London & Partners reveals that London has attracted more international expansion from AI companies than any other city in the world since the pandemic, with a total of 75 firms expanding their reach globally.
Beyond being a breeding ground for AI companies, London is also a prime destination for AI businesses. In fact, it ranks second in the world for attracting incoming AI companies, with a whopping 94 new AI companies setting up shop in the city. This number is only eclipsed by Dubai, which has attracted 112 AI companies. Some notable recent arrivals include Harvey AI, a US-based legal AI unicorn, and Mphasis, an Indian IT firm that has established an ‘Innovation Hub’ in London focused on AI and quantum computing development. Adding to London’s AI appeal, US tech giants Microsoft and Salesforce have both announced plans to expand their AI-focused activities in the city.
The impact of London’s AI sector extends far beyond the UK’s borders. London-born Wayve AI, for example, is set to introduce its AI-driven automated driving software to the US by opening a new office in Silicon Valley.
London’s commitment to AI extends beyond just attracting companies. It is also Europe’s top hub for AI investment and ranks third globally in AI venture capital, trailing only the Bay Area and New York. This year alone, London’s AI firms have raised $2.7 billion, a 23% increase from last year’s $2.2 billion.
This surge in investment isn’t just happening across the board. Some of the leading sectors for AI venture capital investment in London this year include:
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FinTech:
AI is transforming the financial services industry, and London is at the forefront of this revolution.*
Healthcare:
AI is being used to develop new treatments, improve patient care, and streamline healthcare processes.*
Retail:
AI is being used to personalize shopping experiences, optimize inventory management, and improve customer service.Janet Coyle CBE, Managing Director of Grow London at London & Partners, said: “London doesn’t stand still on AI and this is evident from the companies we continue to attract and that we are seeing set up or grow here. With AI at the core of London’s digital revolution, it is driving the city’s growth and the development of the technology itself. London is also one of the best hubs in the world for AI talent and research, as well as home to an internationally renowned business ecosystem. In short, we have all the ingredients needed for an AI company to thrive.”
AI is set to be a central theme at this week’s GROW Summit, where hundreds of serial entrepreneurs, CEOs, investors, innovators, and policymakers will convene to explore the key challenges and opportunities for UK scale-ups.
