Artificial intelligence (AI) will transform London’s economy. But an AI ‘jobs apocalypse’ is not inevitable, and neither is a future in which technology benefits only a privileged few.
That is the conclusion of the London AI and Jobs Taskforce, whose recommendations have today been accepted by the Mayor of London, Sadiq Khan.
After three months of work with employers, trade unions, educators, researchers and Londoners, the Taskforce, chaired by pioneering technology entrepreneur, Baroness Martha Lane-Fox, argues that AI is not a force of nature.
The way work changes will be shaped by the choices cities, businesses and governments make now.
Rather than waiting for disruption to unfold, London should become the first city to actively shape the AI transition—helping employers adopt AI responsibly while creating new opportunities for workers, particularly young people entering the labour market.
The Taskforce has conducted the largest report into the impact of AI on employment in London in conjunction with the Institute for the Future of Work. This has identified how vulnerable specific jobs are to the impact of AI to direct where support may be most needed.
It found that just over half of London’s employment is in occupations that combine relatively high exposure with above-average capacity to adapt to AI. There are around 600,000 Londoners who work in occupations that combine higher exposure with a lower capacity to adapt. These workers are concentrated in clerical and administrative roles, are disproportionately women and tend to be paid below the London average.
The Taskforce also calls for the Mayor to open discussions with national government on devolving more powers to the capital so he can deliver the next phase of AI transition policy.
The Mayor has agreed to take forward three flagship recommendations designed to help London act before disruption becomes dislocation.
- Act early – Create a London AI Early Action System to spot emerging labour-market change before it becomes a crisis. This would combine labour market data, employer insight and local evidence into one early-warning system, so London can spot AI-driven change while there’s still time to act on it, rather that when it is too late.
- Shape change – Launch a London AI at Work Partnership so employers, workers and educators redesign work together—not simply automate existing jobs. The Partnership should drive job redesign, workforce planning and skills development, so people and AI create more value together.
- Create opportunity – Launch London Future Ready Guarantee, bringing employers and young Londoners together to solve real business challenges and co-design the new jobs, skills and career pathways that AI will create. This will have a particular focus on building human skills which are equally important as technical skills, judgement, communication, creativity, collaboration and problem-solving.
In an early example of the Mayor putting the Taskforce’s approach into practice, Sadiq has today announced an £18 million investment to help thousands more young Londoners access careers support, training and routes into good work, while also committing to expand AI training for Londoners. This funding is in addition to £12m that the Mayor announced last month to help small and medium-sized businesses harness the power of artificial intelligence and boost economic growth across the capital.
The Taskforce also calls on national government to work with London on the next phase of AI transition policy, giving cities greater flexibility to respond as technology reshapes local labour markets. It proposes:
- greater flexibility over skills commissioning and deployment
- Testing AI Transition Incentives for employers investing in workforce transition
- retaining and reinvesting a share of public savings generated through successful employment outcomes
- wider fiscal and policy flexibility where it strengthens London’s ability to respond
The Mayor of London, Sadiq Khan, said: “The debate about AI has become too polarised. Some claim it will solve everything. Others predict mass unemployment. Neither view helps Londoners prepare for the future.
“London has the talent, businesses, universities and creativity to lead the world in responsible AI adoption. By acting now, we can boost productivity, create opportunity and make sure technological progress benefits everyone.”
“Through our wider work to prepare London for the future, alongside £18m for new investment in skills, we’re helping ensure no young Londoner is left behind as part of my work to build a fairer, safer and more prosperous London for everyone.”
Baroness Martha Lane-Fox, Chair of the London AI and Jobs Taskforce, said: “AI is changing how London works, but for many it still feels like something happening to them, not with them.
“The risk is not a sudden shock, but a quieter drift—fewer entry-level roles, weaker career ladders and growing inequality—unless we act early to shape how work evolves.
“If we bring employers, workers and educators together now, we can turn higher productivity into broader opportunity, better jobs and stronger public trust. The future of work is not being decided elsewhere, London has the chance to shape it.”
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