Half of London businesses lack AI-ready workforce skills

Half of London's businesses now say their workforce lacks the skills needed for an AI-driven workplace. A Survation survey of 2,043 business leaders found only 50% believe their employees have the necessary capabilities – down sharply from 63% just a year earlier and signalling an accelerating crisis in workforce readiness.

The proportion of firms reporting significant skills gaps hit 15%, the highest level since the annual survey began, up from just 4% in 2025.

This sharp increase mirrors London's growing AI adoption: 75% of surveyed businesses are already using AI in some form, and among those firms, 85% report the technology has fundamentally changed their skill requirements.

Mark Hilton, policy delivery director at BusinessLDN, warned: "While London businesses embrace AI, many struggle to keep pace with evolving workforce needs given the speed of change."

Companies are citing major shortfalls in advanced digital skills, with 60% of those experiencing skill gaps seeing this as their main issue. However, the need for advanced critical thinking, ethical reasoning, and decision-making also emerges as a skill deficiency among today's workforce.

In terms of future plans, 78% of companies anticipate having a considerable need for advanced digital skills within the next two to five years, up from 56% in 2023.

Good news, however, is that 81% of London companies plan to boost their training spend in the year to come, the highest share on record. Hiring challenges are becoming less acute, and while 83% have unfilled jobs, 32% struggle to hire people, down from 46% last year.