London firms say AI is creating jobs as skills race accelerates

AI is helping London firms create new jobs and build the skills needed to stay competitive, according to research from the Lloyds Business Barometer.

Businesses step up investment in AI skills

57% of London businesses already using AI say it has created new jobs in their firm, while 72% of all firms in the region plan to increase investment in AI to upskill their workforce in the coming year.

Of those increasing investment, 55% expect to spend between £25,000 and £100,000, while 20% expect to spend between £100,000 and £250,000.

While 67% of London businesses say their workforce has the AI skills needed, 23% say it does not.

Overall, 75% of the region’s firms say they currently use AI.

AI becoming essential for competitiveness

70% of London firms say that businesses which fail to adopt AI in the next three years will be at a competitive disadvantage, suggesting AI is increasingly viewed as a competitive necessity.

Barriers to AI adoption

Businesses in the region using AI cited data quality (18%), cost (17%) and access to skills (17%) as the main challenges to getting greater value from AI.

Kirsty Sadler, Regional Director for London at Lloyds, said:“It’s encouraging that 57% of London firms using AI say it’s created new jobs – that tells us businesses see this as an opportunity to grow. However, 23% of firms don’t yet have the skills they need, and that gap could widen if we stand still.

Nearly three-quarters of businesses are planning to increase investment in AI skills this year. That shows they’re thinking strategically about staying competitive. Our job is to make sure they have the support and resources to help close that skills gap.”

Amanda Murphy, CEO of Lloyds Business and Commercial Banking, said: “AI has the potential to be as transformative for businesses as the internet was a generation ago.

“The businesses seeing the greatest benefit are treating it not simply as a technology investment, but as a catalyst for broader transformation across their organisation.

“Success will depend on more than access to technology. It will come from building the skills, culture and confidence to use it effectively. The businesses that can combine human ingenuity with the power of AI will create a meaningful advantage in productivity, innovation and growth.

“As adoption accelerates, the greatest challenge for many organisations may not be keeping pace with technology, but ensuring they have the capabilities to adapt alongside it. Supporting businesses to navigate that transition will be critical if the UK is to fully capture the economic opportunity AI presents.”

]The national picture

More than half of UK businesses (54%) say AI has created new jobs, and 58% plan to invest in AI skills.

31% say their workforce does not yet have the AI skills needed and 58% of UK firms say businesses risk falling behind competitors if they fail to adopt AI.

For UK businesses overall, cost, data quality and skills are the biggest barriers to getting more value from AI.

Lloyds is scaling AI roles, tools and training

Lloyds is also investing in its own AI capability. In June, the Group announced plans for more than 1,000 AI-related roles in 2026, including almost 300 agentic AI-related roles and one of the first Level 6 AI Engineering apprenticeships by a UK bank.

More than 400,000 AI Academy courses have been taken since January, with over 65,000 colleagues completing training on working responsibly with AI.