Skip to content
Sunday 9 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,901.09
+0.31%
DAX
26,319.45
+0.69%
CAC 40
8,714.93
+0.17%
STOXX 50
6,523.86
+0.33%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Friday 16 January 2026 11:32 am  |  Updated:  Friday 16 January 2026 11:33 am

Sadiq Khan’s AI fearmongering will set London back

By: Kulveer Ranger

Add as a preferred source on Google
Sadiq Khan speaks at Mansion House unveiling AI taskforce initiative, addressing audience with cityscape backdrop
Sadiq Khan has announced a new AI taskforce

Sadiq Khan’s warnings about AI has made London look like a city anxious, rather than ambitious, about AI. Investors will take note, writes Kulveer Ranger

London has heard this warning before. The current Mayor of London has proclaimed that artificial intelligence (AI) could trigger an “era of mass unemployment” in the capital. Alongside this, City Hall will announce a new taskforce on AI and the future of work, plus free AI training for Londoners. Preparing people for change is sensible. But Mayor Khan’s framing of AI primarily as a threat risks repeating a familiar and costly mistake made by many who don’t understand how business and particularly the tech industry work. I know this because we have been here before.

In 2010, when I established City Hall’s first Digital Office, London was standing on the brink of the app economy and a data-driven revolution. At the time, many voices raised similar alarms: technology would destroy jobs, hollow out industries and concentrate opportunity elsewhere. Instead, London chose to lead. The result was one of the most transformative growth periods in the city’s modern economic history.

Between 2009 and 2012 alone, the number of digital and technology firms in London surged from around 50,000 to more than 88,000. These businesses employed approximately 582,000 people and accounted for over a quarter of all new jobs created in the capital during that period. Far from mass unemployment, digital innovation became one of London’s most powerful engines of job creation.

NEW: Today I’m announcing a new London AI Taskforce and free AI training for Londoners.

AI can transform public services, boost productivity and tackle challenges from cancer care to climate change – but misused, could deepen inequality, unemployment and concentration of power. https://t.co/bicz79R7Gq pic.twitter.com/Kn7Zs8DBUt

— Sadiq Khan (@SadiqKhan) January 15, 2026

That momentum did not fade. Technology employment in London grew by roughly 60 per cent over the following decade, consistently outpacing growth in the wider economy. London went on to become Europe’s leading tech hub, attracting more venture capital than Paris, Berlin and Stockholm combined, and drawing billions in global investment year after year. None of this happened by accident. It happened because London’s civic leadership understood a basic truth: new technologies do not simply replace work – they reshape it. Jobs change, skills evolve and entirely new industries emerge. The task of government is not to dampen innovation, but to ensure the city is positioned to benefit from it. That is why the current rhetoric around AI matters.

London must project AI ambition

AI is not a marginal technology. It is a foundational, platform shift – much like mobile internet, cloud computing and data analytics were a decade ago. It is already embedded across London’s strongest sectors: financial services, life sciences, creative industries, legal and professional services, logistics and advanced manufacturing. In many cases, AI is augmenting human capability rather than replacing it, making workers more productive, not redundant. We are already seeing this play out in the labour market. Demand for AI and advanced tech skills continues to rise, with specialist roles growing faster than many traditional white-collar professions. Software and computer services now employ more people in London than several long-established sectors that were once thought untouchable.

The danger is not that AI will arrive too quickly. The danger is that London talks itself out of leadership. Cities compete globally for capital, companies and talent. If London’s leadership projects anxiety rather than ambition, investment will not pause out of politeness. It will flow to places that offer confidence, clarity and support for innovation. New York, Paris and Singapore are not waiting to decide whether AI is frightening before backing their tech ecosystems. They are moving.

That is why the Mayor’s language matters as much as his policy announcements. Free AI training is welcome, but training alone is not a strategy. A taskforce is useful, but it cannot substitute for a clear, pro-growth vision. The leader of one of the world’s great global cities should be championing AI businesses, not warning that they may hollow out the workforce. London is uniquely well placed to lead the AI age. We have world-class universities producing cutting-edge research, deep pools of global talent, mature capital markets and a startup ecosystem that has already proven it can scale ideas into global companies. These are advantages other cities would envy.

Of course, there are challenges. Technological change always creates disruption. That is precisely why leadership matters – not to stoke fear, but to guide transition, support reskilling and ensure opportunity is broad-based. In the 2010s, London did this successfully with digital and data-driven growth. There is no reason it cannot do so again with AI. The lesson from the last major tech wave is clear: opportunity accrues to cities that shape change, not those that resist it. London’s prosperity has always been built on openness, ingenuity and ambition. Talking down AI risks undermining all three.

The future of work is not something that simply happens to London. It is something London can help define. But only if its leadership chooses confidence over caution, and champions innovation rather than fearing it.

Lord Kulveer Ranger is former digital adviser to Mayor Boris Johnson

Read more

Sadiq Khan’s London plan is not nearly ambitious enough

The Mayor of London, Sir Sadiq Khan, has this morning announced a £1.4m cash injection for community sport across the capital.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion
  • News

Categories

  • Opinion
  • Business

People & Organisations

  • AI
  • artificial intelligence
  • Boris Johnson
  • London tech
  • Sadiq Khan
  • tech
  • UK economy
  • UK Government

Trending Articles

  • Why the Loire Valley is about so much more than fairytale castles

  • Why HMRC is huge Premier League transfer window tax headache

  • Thames Water faces fresh threat to survival after pensions regulation breach

  • Back to basics: Sainsbury’s gradual retreat from the British high street

  • Thunder Call set to Strike in Shergar Cup Sprint

More from Morning Wire

  • Sadiq Khan’s London plan is not nearly ambitious enough

    Opinion
    The Mayor of London, Sir Sadiq Khan, has this morning announced a £1.4m cash injection for community sport across the capital.
  • Sadiq Khan lobbies Burnham to appoint Miliband as Chancellor 

    Politics
    Sadiq Khan addressing media at a press conference in formal attire, discussing recent developments in London policies
  • London workers most exposed to AI jobs cull

    Economics
    London skyline with modern skyscrapers and lush green foliage in foreground on a clear day, highlighting urban nature balance
  • AI reduces founders’ need for capital, says Revolut Business

    Tech
    Canada skyline featuring iconic skyscrapers and modern architecture against a clear blue sky
  • AI startup boss warns UK cannot become ‘dependent’ on overseas tech

    Tech
    Max Buchan discussing Valarian 2s launch at a business event, highlighting innovative features and industry impact.
  • ‘Extremely dangerous’: AI warfare much bigger threat than LLM model advances, experts warn

    AI
    Swarm of AI-powered drones flying over a city skyline, symbolizing modern warfare and autonomous technology.
  • Bank of England to relax capital rules despite warning of economic threats

    Banking
    Bank of England building on Threadneedle Street, London, showcasing its historic architecture and financial significance
  • West Ham: Staveley receives Sadiq Khan encouragement to buy London Stadium

    Sport Business
    Low-angle view of a football stadium from the pitch, showing the corner marking and empty seats under a blue sky
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook