New findings from the Lloyds Business Barometer show that AI is helping London firms work more efficiently and unlock new opportunities for growth.
London businesses integrating AI into their operations are reporting significant financial benefits, with 93% seeing increased productivity and 71% reporting higher profits – the highest proportion of any UK nation or region – over the past 12 months.
Of those who reported a profit boost from using AI, 54% recorded an uplift of 11% or more, with a further 35% saying profits increased by 6-10%, and 11% saying profits increased between 0-5%.
The findings come as investment in AI accelerates, with 83% of London businesses confirming they have invested in AI.
The research from Lloyds found that most firms spent less than £25,000 (34%) to enhance their AI capabilities, followed by 29% of firms who spent between £25,000-£100,000, 8% spending between £100,000-£250,000 and 11% spending £250,000 or more.
More than three-quarters (78%) of businesses in London say they are currently using AI.
Investing in skills and capability
Alongside these gains, London businesses are investing in the skills needed to make AI adoption effective. The survey shows that customer service roles have been upskilled the most by AI (51%), followed by sales teams (36%).
Kirsty Sadler, regional director for London at Lloyds, said: “London businesses are seeing real results from their AI investments, highlighted in these profitability and productivity increases. As they adopt this new technology more widely to help them grow and compete, they will need clear oversight and robust processes to ensure these tools are used responsibly and transparently.”
AI in Action
Lloyds is also seeing the benefits of its investment in AI. For example, earlier this year, Lloyds developed a Generative AI tool, ‘CRE AI’, which processes complex real estate tenancy schedules in minutes, rather than the 75 hours previously required. While it doesn’t make decisions, the tool streamlines preparation so teams can focus on judgement-based work and supporting clients.
Lloyds Banking Group this year launched the AI Academy, a programme designed to provide practical AI skills for all colleagues, no matter their role or level. The aim is to equip colleagues with the skills and knowledge to implement AI solutions in their day-to-day work, boosting efficiency and allowing colleagues to focus their time on high-value tasks. By putting new capabilities into practice, it creates opportunities to provide customers with enhanced and innovative new services, and open potential new revenue streams for the business.