Full Breakdown
London Businesses Confront AI Skills Gap as Adoption Accelerates
6/22/2026, 11:56:40 AM
Survey Reveals Widening AI Skills Shortfall
A survey of 2,043 London business leaders conducted between 25 November 2025 and 15 January 2026 found that 50 % of firms now consider their workforce lacking the skills required for artificial intelligence (AI), a drop from 63 % a year earlier. The share of companies reporting significant skills and capacity gaps rose to 15 %, up from 4 % in 2025, marking the highest level recorded by the annual poll.
Context: AI Integration in London’s Corporate Landscape
The poll indicates three-quarters of London firms deploy AI, while only five percent have no adoption plans. Among adopters, 85 % report AI reshaped required employee skills, highlighting a heightened need for critical thinking, ethical reasoning and decision-making. The findings coincide with the Office for National Statistics noting London’s unemployment rate as the highest among UK regions.
Key Players: BusinessLDN, Survation, and Mark Hilton
The survey was commissioned by BusinessLDN, a London-based business advocacy group, and executed by market-research firm Survation. Mark Hilton, policy delivery director for people and skills at BusinessLDN, provided commentary on the results, highlighting the tension between rapid AI uptake and the pace of workforce upskilling.
Numbers at a Glance
Key figures from the poll include: 75 % of firms using AI; 85 % of those reporting changed skill requirements; 81 % planning to increase training investment in the next year (up from 80 % previously and 69 % in 2023); 83 % reporting current job vacancies; and 32 % indicating difficulty filling roles, the lowest level since the survey began.
Implications for the City’s Workforce and Economy
The expanding skills gap underscores a rising demand for capabilities such as critical thinking, ethical reasoning and autonomous decision-making, which are not traditionally emphasized in many roles. Increased training commitments could reduce vacancy pressures and support London’s labour market, especially given its comparatively high unemployment rate.
Official Response from BusinessLDN
BusinessLDN acknowledges the dual challenge of rapid AI adoption and skill shortages. The organisation emphasizes that employers are already increasing training budgets, but stresses the necessity of a more agile, responsive skills system to close gaps effectively. It calls for coordinated policy action to align education and industry needs.
Verbatim Quote
"While London businesses are embracing AI, many are finding it challenging to stay on top of their workforce skills needs given the pace of change. Positively, employers are responding by increasing investment in training, but to properly close skills gaps it is essential we have a more agile skills system that is responsive to these rapidly changing needs." — Mark Hilton, Policy Delivery Director for People and Skills, BusinessLDN
Future Outlook: Training Plans and Unfilled Vacancies
BusinessLDN reports a record 81 % of firms intend to raise training spend in the next year, signalling a sector-wide shift toward upskilling. Although 83 % of companies list vacancies, the share struggling to fill roles fell to 32 %, the lowest since the survey began, suggesting early recruitment improvements as training expands.
