London claims number two spot in global ranking of AI hubs
London has claimed the number two spot in a new global ranking of tech talent hubs, second only to San Francisco, as the capital continues to ride the wave of AI innovation.
However, behind the headlines, the race for digital skills is intensifying, and the UK still faces significant challenges if it wants to maintain its lead.
According to the Global Tech Markets ‘ top talent locations 2025 report by Colliers, London, Paris, and Dublin are now among the top 10 cities globally for AI and data science capability.
Europe’s broader tech workforce is also gaining momentum, with EMEA cities accounting for 22 of the top 50 – outpacing both North America and Asia-Pacific.
The report benchmarks more than 200 global cities on factors such as AI hiring, venture capital flows, university output and tech productivity.
London scores highly across the board, reflecting its strong blend of academic depth, startup activity, and global corporate presence.
“Location strategies are shifting. London’s advantage lies in the scale of its ecosystem – talent, innovation and investment all converge here”, said Andrew Hallissey, global chief of occupier services at Colliers.
London’s productivity lag
While London ranks highly for its overall scale, the report notes Dublin has the highest productivity per tech worker in EMEA, with tech now accounting for 36 per cent of its GDP.
Paris, meanwhile, ranks closely behind London in terms of data science density.
These figures suggest a broader decentralisation of the global tech landscape. As costs soar in Silicon Valley and the digital workforce becomes more distributed, companies are looking beyond legacy hubs to cities that offer both talent and affordability.
Yet the UK’s leading position is far from secure. While the capital continues to attract the lion’s share of AI investment and job creation, concerns are mounting over a growing digital divide between London and the rest of the country.
The AI skills fault line
Recent data from Amazon Web Services and Accenture showed that 80 per cent of UK AI roles are concentrated in London, with far fewer opportunities in regions outside the M25.
Emma Kendrew, UK tech lead at Accenture, warned that this imbalance risks creating a two-tier tech economy.
“To fully capitalise on the economic potential of AI, regions outside of London will also need to compete for talent and infrastructure to achieve sustainable growth and unlock opportunities”, she said.
“The disparity in regional upskilling in AI raises concerns about a growing digital divide in the UK and could hurt long-term competitiveness”.
This warning echoes concerns raised during London Tech Week, where a summit at the House of Lords sounded the alarm over the UK’s looming ‘skills cliff edge’.
Industry leaders stressed that AI adoption is outpacing the availability of trained talent, particularly in cybersecurity, data governance and digital forensics.
“There’s no one-size-fits-all strategy here,” said James Tuttiett of FDM Group. “But what’s clear is that most organisations are still experimenting – and the ones succeeding are those investing in upskilling and cross-generational leadership.”
Government steps in
In a bid to address the skills shortage, the UK government this week signed an agreement with Google Cloud to modernise public sector IT and train 100,000 civil servants in digital and AI tools by 2030.
The deal, unveiled at the Google summit in London, aims to phase out outdated legacy systems and slash inefficiencies across the NHS and local government.
Peter Kyle, secretary of state for tech, said the partnership would ‘reset’ how government approaches digital services: “My message to the tech sector is simple: bring us your best ideas, best tech and your best price”.
While the pledge is ambitious, experts caution that execution will be key. A similar digital skills commitment in 2016 fell short of targets, and regional inclusion remains a concern.
The private sector’s role
Beyond government, business leaders are being urged to step up their efforts. Research from Workday suggests that while millennial leaders are driving the push for reskilling and AI adoption, there’s a lack of cross-generational alignment.
“In today’s workplace, adaptability matters more than seniority,” the report argues. “But too many organisations still lack clarity on how AI fits into their talent strategy.”
Inclusive leadership, which recognises both emerging tech needs and human fears, will be essential to avoid workers feeling displaced or left behind.
London may be the front runner in Europe’s AI talent race, but maintaining that lead won’t be automatic. While the capital enjoys a deep well of talent and investment, the UK’s broader workforce remains unevenly prepared for the AI transition.
Colliers’ report is ultimately an encouraging read for EMEA – proof that Europe has the tools and ambition to compete globally.
However, as the pace of change accelerates, the real test will be how quickly policy, education, and industry align to ensure that no city and no worker is left behind.