Workers in London are adopting artificial intelligence at a faster rate than the rest of the UK as the capital’s job market shows signs of growth, according to analysis from Employment Hero.

The AI Paradox at Work study surveyed 3,290 business leaders and 5,454 workers across Australia, Canada, New Zealand, and the UK, conducted with research technology company Focaldata. Within the UK, the study polled 3,500 UK employers and their employees.

The survey found that 53% of workers in London use AI daily, compared with 36% of workers nationally. Usage drops to 34% in the North West and 31% in Yorkshire and the Humber. While 83% of London workers reported that AI tools have impacted their quality of work, compared with 73% nationally, 42% agreed they would struggle to do their job without AI.

Kevin Fitzgerald, UK Managing Director at Employment Hero, said in a press release: “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.”

Fitzgerald noted that AI was shaping where opportunities were located across the UK in addition to changing how work gets done: “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.”

According to the data, 61% of workers in London feel competent with AI compared to 41% nationally. Social media is used by 78% of London workers to learn AI skills, compared to 56% nationally. Meanwhile, 41% of London businesses believe AI skills matter compared to 36% nationally, and 57% of London businesses have increased entry-level roles over the past two years compared to a 50% national average.

Further data from Employment Hero showed that in London, employment grew 3.3% month over month in June, compared with the 2.5% national average. Wages grew by 1.9% on a monthly basis for Londoners, with the median full-time wage reaching £55,872.

Since the beginning of 2026, employment growth in London has maintained an upward trend, with growth in June up 4.0% compared to March.

Across the UK, Australia, Canada, and New Zealand, businesses with AI at the core of their operations were more likely to hire junior staff. 62% stated they have increased entry-level headcount in the last two years, compared to 30% of non-adopters.

The UK recorded higher figures for this growth, with 24% of UK business leaders believing AI will increase the need for entry-level roles, compared with 13% in Australia, 15% in Canada, and 12% in New Zealand.

“London’s jobs market moves fast,” Fitzgerald concluded. “A few months ago, employment growth in the capital was stalling and today, our data shows that SMEs are hiring again.”

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