Londoners, embrace tech or watch others take your place

London’s Tech Scene: A Global Leader at a Crossroads

London's tech scene is undeniably one of the most dynamic and influential in the world. As you walk through the Square Mile, you’re not just stepping into a city rich in history and culture, but also witnessing a global financial hub that has consistently pushed the boundaries of innovation. For centuries, the City of London has been a beacon for progress, embracing emerging technologies and creating frameworks that shape the future of finance, climate action, and financial inclusion.

This year, we will be celebrating the achievements of the tech sector and its remarkable workforce during the annual Innovation and Technology Dinner at Mansion House. The event, which will be attended by the science, innovation, and technology secretary, Peter Kyle, is a testament to the incredible work being done in this field.

A Leading Global Tech Hub

London stands as a leading global tech hub, not only as Europe’s largest tech center but also because of its vibrant startup community and the presence of major global tech companies. The ecosystem thrives on a combination of world-class talent, strong investment, and an environment that fosters responsible and scalable technological growth. Home to domestic success stories like Revolut and Monzo, as well as international giants such as Anthropic and OpenAI, London boasts twice as many AI-based companies as any other European country. In fact, it ranks second only to the San Francisco Bay area when it comes to attracting top tech talent.

However, despite these accomplishments, there is no room for complacency. The rapid pace of technological change means that the status quo can quickly become outdated.

New Technologies Are Transforming Everyday Life

New technologies are reshaping how we do business, interact with each other, learn, fight crime, and even diagnose illnesses. The government has launched several initiatives aimed at using technology to boost productivity and improve public services. For example, in the NHS, AI is helping reduce the administrative burden on medical professionals, allowing them to focus more on patient care. Similarly, efforts to combat crime are benefiting from real-time data sharing between police, councils, and social services, making it easier to identify and respond to threats.

In the Square Mile, the City of London Police is leading the way in using technology to tackle online fraud, which accounts for 43% of all crime. Their innovative approaches highlight the critical role that technology plays in maintaining security and safety.

The Tech Sector Must Go Further

A key part of my mayoral theme, "Growth Unleashed," has been encouraging businesses to embrace new technologies to give British firms a competitive edge. To support this, the Scale-up Showcase series has connected promising British tech companies seeking funding with potential investors. Additionally, the upcoming Quantum Hackathon, in partnership with IBM, will bring together cross-disciplinary teams to solve complex challenges in areas like market simulation and risk management.

Despite the UK’s success in the tech sector, there is still much to be done. Innovation often leaves the country due to a lack of domestic capital investment. Others are eager to capitalize on this gap.

A Brighter Outlook for Investment

While the state of public markets has been a topic of discussion, the overall picture is not entirely bleak. Investors and private equity firms continue to view the UK as an attractive destination. Mergers and acquisitions activity, along with share buybacks, indicate renewed confidence in UK PLC.

One significant initiative aimed at addressing the investment gap is the Mansion House Accord. This commitment from 17 of the UK’s largest workplace pension providers seeks to allocate 10% of default defined contribution funds to alternative investments by 2030, potentially unlocking £100 billion in investment. Half of these funds will be directed toward the UK, supporting tech businesses in their growth and success.

Succeed We Must

For both economic prosperity and national security, we cannot afford to become mere consumers of others’ innovations. It is imperative that we continue to invest in and nurture our own tech ecosystem. London’s position as a global leader in technology must be maintained through sustained effort, strategic investment, and a willingness to adapt to the ever-changing landscape of innovation.