London workers lead UK in AI use as hiring rebounds

JOSEPH GABRIEL LAGONSIN

News Editor

Employment Hero has published data showing that London workers use artificial intelligence more often and feel more confident using it than workers elsewhere in the UK. The figures also suggest hiring by small and medium-sized businesses in the capital has picked up.

Its UK research found that 54% of workers in London use AI every day, compared with 36% nationally. In the capital, 61% said they considered themselves competent in using AI, against a UK average of 41%.

The regional gap extends beyond headline usage. Daily AI use falls to 34% in the North West and 31% in Yorkshire and the Humber, pointing to a clear divide between London and other parts of the country.

The findings also suggest London workers rely more heavily on the tools. Some 83% said AI had affected the quality of their work, compared with 73% nationally, while 42% said they would struggle to do their job without it.

Jobs rebound

Separate platform data based on payroll activity among SMEs showed employment in London grew 3.3% month on month in June, ahead of the 2.5% national average. Wages in the capital rose 1.9% over the month, taking the median full-time wage to £55,872.

Employment Hero said the capital’s jobs market had weakened sharply in April 2025 and remained subdued until the end of last year. Since the start of 2026, the data shows employment growth has picked up, with June running 4.0% higher than March.

The latest figures add to a wider debate over whether the benefits of AI investment are becoming concentrated in London. The capital has attracted policy attention and funding around AI, but the data suggests workforce familiarity with the technology is not evenly spread across the country.

Skills divide

Workers in London also appear more likely to seek AI training through informal channels. The research found that 78% were learning AI skills on social media, compared with 56% nationally.

Businesses in the capital were slightly more likely to place importance on AI skills. Some 41% of London-based firms said those skills matter, against a national average of 36%.

The survey also linked AI adoption with entry-level hiring. In London, 57% of firms said they had increased entry-level roles over the past two years, the highest share of any region covered by the research, compared with a national average of 50%.

Across the UK, Australia, Canada and New Zealand, businesses with AI at the centre of their operations were more likely to report growth in junior hiring. Among those companies, 62% said they had increased entry-level headcount in the past two years, compared with 30% of businesses that were not AI adopters.

UK business leaders were more likely than those in the other three countries to say AI would increase the need for entry-level roles. Nearly a quarter, or 24%, of UK respondents held that view, compared with 13% in Australia, 15% in Canada and 12% in New Zealand.

The figures come from a survey conducted by Focaldata for Employment Hero covering more than 3,500 UK employers and employees, alongside a wider international study. The jobs data is drawn from 4,599 businesses and 140,829 employees on the company’s platform, reflecting activity in the SME labour market.

Kevin Fitzgerald, UK Managing Director at Employment Hero, said: “London’s jobs market moves fast. A few months ago employment growth in the capital was stalling and today our data shows that SMEs are hiring again.”

He said the research suggested both opportunity and risk in the way AI is spreading through the labour market. “It’s clear that AI is going to play a central role in the future of employment, whether that’s large AI companies choosing to call London home or small businesses leveraging the technology for growth. Our new research shows that Londoners have embraced AI in numbers. That’s great for the capital, but there’s a real risk the rest of the UK gets left behind if that momentum isn’t matched.

“AI isn’t just changing how work gets done, it’s starting to shape where opportunities are too. While London’s role as global AI hub is key, we must also make sure that businesses across the nation have the investment and training needed to build AI-confident workforces.”