Workers in London are leading the charge on AI adoption as the jobs market in the capital shows signs of resurgence according to new analysis from Employment Hero, the AI-powered employment platform. The data, from its latest global study, The AI Paradox at Work, also reveals a widening AI confidence gap across the UK.
London workers embracing AI
The study of over 3,500 UK employers and their employees conducted by Focaldata found that 53% of workers in London are using AI daily, compared to 36% of workers nationally. This falls to 34% in the North West and 31% in Yorkshire and the Humber.
While over eight in ten (83%) London workers reported that AI tools have impacted their quality of work, compared with 73% nationally, 42% agreed they would struggle to do their job without AI.
The findings underline London’s importance to the government’s ambition of building a global AI hub, but also highlight a potential imbalance, with uneven AI adoption risking a widening skills and opportunity gap across regions.
Jobs market in the capital showing signs of resurgence
Employment Hero’s platform data, which tracks business expansion among SMEs, reveals that in London, employment grew 3.3% month-on-month in June, compared to the 2.5% national average. Wages also grew by 1.9% month-on-month for Londoners, with the median London full-time wage reaching £55,872.
The jobs market in the capital experienced a sharp decline in employment growth in April 2025 and a lull was sustained until the end of last year. Since the turn of 2026, employment growth has been on a steady upward trend, with growth in June up 4.0% compared to March.
The skills of the future
As the labour market remains highly competitive, workers must prioritise developing the AI skills required to future-proof their careers. Employment Hero’s research revealed that over six in ten (61%) workers in London see themselves as competent using AI, well above the national average of 41%.
Alongside this, almost eight in ten (78%) workers in London are learning AI skills on social media, compared to 56% nationally. While this demonstrates the clear willingness of London workers to engage with AI, it also highlights the need for small businesses across the UK to support their employees tackle the AI skills gap head-on.
The research found that businesses in the capital are placing greater emphasis on AI skills. Over four in ten (41%) London-based firms agreed that AI skills matter, compared to a national average of 36%. They are also more likely to hire entry-level staff, with 57% increasing entry-level roles over the past two years, the highest of all regions surveyed.
London
National average
Workers that feel competent with AI
61%
41%
Workers learning AI skills on social media
78%
56%
Businesses who believe AI skills matter
41%
36%
Businesses who have increased entry-level roles over the past two years
57%
50%
The role of AI in global job creation
The research also suggests that AI could increase the need for entry-level workers. Across the UK, Australia, Canada and New Zealand, businesses with AI at the core of their operations were more likely to hire junior staff: 62% said they’ve increased entry-level headcount in the last 2 years, more than double the rate of non AI adopters at 30%.
The UK is leading that growth. Nearly a quarter (24%) of UK business leaders believe AI will increase the need for entry-level roles – significantly higher than in Australia (13%), Canada (15%) and New Zealand (12%).
Kevin Fitzgerald, UK Managing Director at Employment Hero said: “London’s jobs market moves fast. A few months ago employment growth in the Capital was stalling and today, our data shows that SMEs are hiring again.
“It’s clear that AI is going to play a central role in the future of employment, whether that’s large AI companies choosing to call London home or small businesses leveraging the technology for growth. Our new research shows that Londoners have embraced AI in numbers. That’s great for the capital, but there’s a real risk the rest of the UK gets left behind if that momentum isn’t matched.
“AI isn’t just changing how work gets done, it’s starting to shape where opportunities are too. While London’s role as global AI hub is key, we must also make sure that businesses across the nation have the investment and training needed to build AI-confident workforces.”