London leading global city for AI businesses to grow

New analysis of Foreign Direct Investment (FDI) data by London & Partners shows that more artificial intelligence (AI) companies (75) from London have expanded internationally than from any other city globally post-pandemic. The UK capital has also welcomed the second-highest number of AI companies (94 companies) in the world, after Dubai (112 companies).

Two recent examples of AI companies that have landed in London are US legal AI unicorn Harvey AI and Indian IT firm Mphasis. The latter opening an ‘Innovation Hub’ in the capital to hone in on its AI and quantum computing capabilities.

Another boost for London’s AI scene came earlier this year when not just one, but two US tech giants, Microsoft and Salesforce, announced plans to expand their AI operations in the UK capital.

And it’s not just that AI companies are flocking to London. London-born Wayve AI recently announced that it will bring its AI automated-driving software to the US, opening a new office in Silicon Valley.

In terms of venture capital investment into AI, London ranks #1 in Europe and #3 globally, behind only the Bay Area and New York. And so far this year, London AI companies have raised $2.7bn in investment, 23% more than last year’s total of $2.2bn.

Notable funding rounds in London so far this year include:

• Wayve AI ($1.1bn)
• Flo Health ($200m)
• Huma ($80m)
• Stability AI ($80m)

The top sectors for AI-related venture capital investment in London so far this year are:

• Transportation ($1.1b)
• Enterprise software ($746m)
• Health ($518m)
• Fintech ($403m)
• Energy ($173m)

Janet Coyle CBE, Managing Director of Grow London at London & Partners, said: “London doesn’t stand still on AI and this is evident from the companies we continue to attract and that we are seeing set up or grow here. With AI at the core of London's digital revolution, it is driving the city's growth and the development of the technology itself. London is also one of the best hubs in the world for AI talent and research, as well as home to an internationally renowned business ecosystem. In short, we have all the ingredients needed for an AI company to thrive."

AI is expected to be one of the main topics of discussion at this week’s GROW Summit, where hundreds of serial entrepreneurs, CEOs, investors, as well as innovators, and policymakers will gather to discuss the biggest challenges and opportunities facing UK scale-ups. To find out more, head to: www.grow.london/grow-summit.