The majority of London firms believe AI adoption will be a key growth driver for the capital’s economy, according to Lloyds’ Business Barometer, as many
report AI-related increases in productivity and profitability.

Three quarters (75%) of London businesses believe greater AI adoption will be a major driver of local economic growth – the highest proportion of any UK
nation or region.

Of the 67% of London companies already using AI, 83% have seen it increase their productivity, and 69% say it has improved their profitability. Firms are
most commonly using AI platforms to improve efficiency (77%) and to analyse data and make better-informed decisions (48%).

Looking ahead, 85% of London’s businesses plan to invest more in AI over the next year, with nearly
one in five (18%) businesses planning to create new AI-specific roles.

Firms said new or further increases to productivity (61%) or profitability (44%) and the desire to compete with bigger players in their sector (44%) were
the biggest drivers behind their future investment plans. Companies also said that having a better understanding of the technology and its benefits (62%), or instances of competitors using AI (15%), would facilitate even more investment.

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both
regionally and nationwide.

Kirsty Sadler, regional director for London at Lloyds, said:
“The potential for AI to drive local economic growth is felt more by London’s businesses than by those in any other part of the country.

“Local firms are already seeing the benefits of the technology in terms of profitability and productivity increases. Greater access to AI knowledge, and sharing experience,
will be key to helping spread the benefits further across the capital.”