Half of London businesses say their workforce does not currently have all the skills needed to meet their organization’s requirements in the age of artificial intelligence (AI), according to a survey of more than 2,000 business leaders.
The poll, conducted by Survation on behalf of BusinessLDN, found that 50% of businesses believe their existing workforce has the skills and abilities they need, down from 63% a year ago.
The proportion of companies reporting significant skills and capability gaps reached 15%, up from 4% in 2025 and the highest level recorded in the annual survey.
The findings come as the use of AI increases across the capital.
Three-quarters of companies surveyed said they were already using AI in some way, but only 5% said they had no plans to use the technology.
Among companies already using this technology, 85% said the skills required of their employees have changed. According to the survey, companies report an “increasing need for critical thinking, ethical reasoning, and decision-making.”
The survey of 2,043 business leaders from various sectors also found:
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35% of companies report skills and competency gaps
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Another 12% plan to deploy AI and 8% are considering using it.
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60% of companies with a skills gap reported lacking advanced digital skills and 23% lacking basic digital skills
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78% expect advanced digital skills to be significantly needed in the next two to five years, up from 66% last year and 56% in 2023.
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13% expect training investment to remain the same, 5% expect it to decrease
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17% of companies report no job openings
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20% are planning layoffs, while 76% do not anticipate layoffs.
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Of the companies planning to reduce staff, 25% cited cost reductions, 24% due to reduced demand for new talent due to AI, 23% cited decreased demand for mid-career talent, and 14% cited changes in economic conditions or business models.
Mark Hilton, policy delivery director for talent and skills at BusinessLDN, said: “London businesses are implementing AI, but many are finding it difficult to stay on top of their workforce’s skill needs given the pace of change.
“Employers are responding proactively by increasing their investment in training, but to successfully close the skills gap it is essential to have more agile skills systems that respond to rapidly changing needs.”
The survey found that a record 81% of companies plan to increase investment in training over the next year, up from 80% in the previous survey and 69% in 2023.
