This introduction has been written by Darren de Souza, Senior Policy and Projects Officer at London Higher and forms part of a publication entitled ‘Perspectives on the role of London’s higher education sector in global AI leadership: A collection of essays’ which is being published on the London Higher website one part at a time.
Few phenomena have dominated conversations across higher education like artificial intelligence, especially since the launch of ChatGPT in November 2022. AI is a fast-developing technology and a high-growth sector, presenting both opportunity and risk for universities and beyond. It is clear too that London, as the UK’s global city, will play a leading role in bringing this vision to fruition and realising the Prime Minister’s ambition to ‘make London the AI capital of the world’. A report commissioned by the Mayor of London back in 2018 already made clear London’s status as the AI Growth Capital of Europe and a global hub that is ready to face the challenges and capitalise on the opportunities that AI brings.
This publication convenes thought leaders from across academia, business and industry to explore how: (i) London’s position as an AI leader can be sustained; and (ii) the role of London’s universities in achieving this. The impending London Growth Plan will outline how London can drive UK growth by drawing on its high-growth sectors and situating the role of higher education within this mission. Likewise, the proposed new industrial strategy speaks of an ambition ‘to grow the AI sector and drive responsible adoption across the economy’.
London’s strong innovation ecosystem, characterised by its density and diversity of higher education, is a knowledge base ripe for investment that has a strong recent track record in commercialisation and university spinout ventures. The presence of world-leading financial services, law firms, businesses, and other high-growth sectors in the capital means that London is unrivalled as an attractive proposition for investment and as a place to do business.
Robust (and sustainable) infrastructure and collaboration are needed to capitalise on this, allowing for responsible and ethical development, implementation and utilisation of AI across sectors. Central to this effective advancement is partnership – between academia, business and industry, government, civil society and citizens.
By building upon London universities’ position as innovation hubs, stakeholders can more effectively leverage the collective expertise to advance AI education that creates a skilled workforce, educates the public and industry on responsible use and applications, and secures long-term research investment and opportunities. Through increased strategic join-up and practical collaboration, London can continue to lead the UK – and Europe – in fostering innovation, driving growth and productivity, attracting and retaining international talent, and benefitting society.
On an international level, conversations have revolved around the technology’s ‘promise and peril’, prompting frameworks such as:
- the UK’s National AI Strategy (September 2021);
- the European Union AI Act (proposed in April 2021; enacted in August 2024); and
- US President Joe Biden’s Executive Order on the development and use AI (October 2023).
Specifically, the UK’s national strategy spoke of ‘recognising the power of AI to increase resilience, productivity, growth and innovation’, highlighting the potential opportunities that the technology and its sector bring. London is key to this, chiming with the Prime Minister’s belief that ‘London is the best capital city on earth and it stands on the foothills of a productivity revolution, powered by AI’.
In order to do so, we set out several recommendations:
- Set out the UK’s direction of travel on AI to articulate our competitive advantage. The UK can do things differently to our key competitors. Where AI technology in China is government led, and the USA is a free market, here in London and the UK we can be more collaborative, convening and harnessing diverse views and expertise for responsible development.
- Get better at scaling up. London is a great place to start-up or spin-out a business, but scale-up presents a challenge. A long-term migration strategy is needed, specifically, one that enables universities to recruit global talent and allows businesses to retain them post-graduation. Existing structures with expertise in business growth and investment, such as the Scale-up Institute and the British Business Bank, should also be learnt from – with the latter already undertaking successful work regionally through the Northern Powerhouse and Midlands Engine.
- Strike a balance with regulation. We must have the freedom and space to innovate, whilst recognising the EU’s position as our largest trading partner. Too much regulatory divergence may risk losing the ability to translate our outputs to key markets.
- Achieve greater collaboration and better coordination. Although London has multiple assets and centres of expertise, these could be better joined-up. The new Industrial Strategy needs to ensure coordination between national AI assets such as The Alan Turing Institute, The AI Safety Institute (AISI) and Advanced Research and Invention Agency (ARIA), whilst drawing appropriately on local growth plans. This will enable all key actors to better align their goals and ensure that AI is used responsibly to drive growth and wider social and economic benefits for Londoners and communities across the UK.
- Let London compete globally in this space. London can create global solutions to global challenges in areas such as health and climate change. London is the place where generative AI can be looked at in different languages, situated in an international community and with knowledge of global markets. The question for government is how London can lead the way and work for the whole of the UK.
With political alignment between City Hall and Westminster, and a national government that has set out its vision via missions, now is the time to set out a clear strategy for how cross-sector partnerships can be facilitated and leveraged to sustainably develop AI and drive growth.
