Heard the one about the bus route, the construction site, and the marketing ad? You would have done if you were at the London AI Steering Group, a collaboration between BusinessLDN and Deloitte that came together for the first time this week. Because they are just some of the situations we heard about where AI is already being deployed daily around the capital.
Our task? To answer the simple but critical question: “How can we ensure that AI is a force for good and a win-win for London’s economy and its workforce?”
We’ve put together a stellar cast list to guide us, with firms representing a wide cross-section of the capital’s economy: Addleshaw Goddard, Brainstation, Canary Wharf Group, Derwent London, Haleon, Imperial, JLL, Linklaters, Mace, Microsoft, Natwest, Sky, Stagecoach, and WSP.
There are plenty of reasons we’re excited to be doing this piece of work.
First, the sense that we could create a blueprint for others to follow, given that London’s industrial mix likely means that the ramifications will be felt sooner and more profoundly than in other cities.
Second, a feeling that we can be genuinely helpful to firms, given that everyone mistakenly thinks others are miles ahead of them when – in reality – we’re all grappling with how best to play it.
And third, a belief that we can really make a difference to the lives and livelihoods of many Londoners, who will be navigating what all this means for their careers.
Our timing is good too, with the Mayor also grappling with what AI means for London’s labour market. We’ll be sharing our insights with his team to help inform their work.
Over the coming months, we plan to get stuck into three deep dives:
- Beyond the hype: Which London jobs will AI truly redefine, and what’s the realistic timeline for this transformation?
- AI-driven re-skilling: Who pays, who trains, and who benefits in London’s evolving labour market?
- Future-proofing London’s talent: What radical shifts are needed in education and training to meet AI’s demands?
Our first session explored the roles and activities where AI is already being deployed today in the range of firms represented. We also probed what’s happening as a result –
for example, whether people are redirecting their time to more value-added tasks, whether they are being redeployed to other parts of the business, or whether firms are using the efficiencies to reduce headcount. And finally, we looked into the future, asking about the roles and activities people foresee AI will most redefine, and over what timeframe.
Here are the takeaways and key themes from the fascinating discussion that ensued.
One, whilst there are clear nuances in approach, everyone is in the same boat. We all recognise the three archetypes that exist in most firms: the enthusiasts who are relentless about leveraging the opportunities; the in-betweeners, who know it’s the right thing to do, but are too busy on the treadmill to really figure it out; and the left-behinds, who are either super-busy or have little interest in change. Overall, though, it’s clear that there is very significant use of AI going on across all sectors.
Two, the activities and roles where AI is being deployed are already widespread. As you would imagine, lots of operational efficiencies are being exploited in finance and HR activities. We heard plenty of examples of where it is being used to streamline sales and marketing. And it is speeding up innovation and the pace at which new products and services can be brought to market, with development lead times measured in days rather than weeks and months.
Three, for now at least, most firms are using AI efficiencies to take out tasks rather than roles. But headcount is already reducing. Many are hiring less and not replacing entry-level roles when they become vacant. And there are already examples of making less use of contingent workforce, where, for example, AI can help with the ideas stimulus rather than hiring a creative design agency.
Four, the bits that firms are finding hard. Chief amongst these is how to calculate and demonstrate return on investment from AI. The other big, thorny issue is working out how to play the talent pipeline. Many firms already know that AI means they need fewer entry-level roles. But they are pondering how to play trainee, apprenticeship, and graduate hiring plans as they calibrate what they still need to ensure a healthy talent pipeline in the future, for fear of taking too much out. And there’s always the counterfactual to weigh up: why wouldn’t you want to bring in a very tech-savvy and adaptable generation of workers?
Five, the more advanced thinkers are tackling the biggest AI disruptor of all: instead of looking at it on a task basis, they are starting with the end outcome and re-imagining how to get there. That massively cuts across role types and traditional departmental responsibilities.
So, a very rich first discussion. Stand by for lots more insights from this first session, including on where AI leadership sits in organisations and how different role types should be contributing. We’ve also garnered lots of top tips on where it is – and critically, it isn’t – sensible to deploy AI and what is best left to humans. And then next time out, we’re turning our attention to the re-skilling question.