Mayor Announces £12m AI Investment to Help Small Businesses Grow

Small businesses across London are set to receive a major boost after Mayor of London Sir Sadiq Khan unveiled a £12 million programme designed to help firms adopt artificial intelligence and unlock new opportunities for growth.

Announced during London Tech Week, the initiative will invest £4 million annually over the next three years to support small and medium sized enterprises looking to integrate AI into their operations. The programme has been developed by London & Partners, the capital's growth agency, in consultation with the Mayor's AI and Jobs Taskforce.

The funding comes at a time when many smaller businesses are exploring how artificial intelligence can help improve efficiency, reduce administrative workloads and strengthen competitiveness. Despite growing interest in the technology, fewer than one in six London SMEs currently use AI tools, highlighting a significant opportunity for businesses to increase productivity and scale more effectively.

Under the scheme, businesses will receive practical support to help them understand and implement AI technologies. The programme forms part of the Mayor's wider economic strategy to make London one of the world's leading cities for innovation and entrepreneurship.

The announcement reflects a growing recognition that AI will play an increasingly important role in the future of business. Earlier this year, Khan warned that artificial intelligence could have a profound impact on the labour market if governments and employers fail to prepare workers for technological change. In response, City Hall established the London AI and Jobs Taskforce to examine how businesses and employees can adapt to the opportunities and challenges created by AI.

For small businesses, the latest investment represents more than just funding. It signals a broader push to ensure that SMEs are not left behind as larger organisations accelerate their adoption of artificial intelligence. While many big companies have already invested heavily in AI, smaller firms often lack the resources, expertise or confidence needed to implement new technologies effectively.

Business and technology leaders have welcomed the initiative, arguing that AI has the potential to transform how small companies operate. From automating routine tasks and improving customer service to supporting marketing and data analysis, advocates believe the technology can help smaller firms compete more effectively in a challenging economic environment.

As economic pressures continue to weigh on businesses, access to new technologies could prove increasingly important. The Mayor's investment aims to ensure that London's SME community is equipped to take advantage of emerging digital tools, helping businesses improve productivity, drive innovation and contribute to the capital's long term economic growth.