London launches £30 million plan to prepare workers for AI

London Mayor Sadiq Khan has backed a £30 million programme to help workers and businesses prepare for AI-driven labour market changes, following recommendations from the London AI and Jobs Taskforce.

The taskforce concluded that mass unemployment is not inevitable but warned that governments, employers and educators must act early. It estimated that around 600,000 Londoners work in occupations with high exposure to AI but limited capacity to adapt. Many of these workers are employed in clerical and administrative roles, are disproportionately women and earn below the London average.

Khan accepted three flagship recommendations. A London AI Early Action System would combine labour market data, employer insights and local evidence to identify disruption before it becomes a crisis.

An AI at Work Partnership would bring together employers, workers and educators to redesign jobs, plan workforce transitions and develop new skills.

The London Future Ready Guarantee would connect young people with employers to strengthen skills such as communication, creativity, collaboration, judgement and problem-solving.

The Mayor also announced £18 million for youth employment and careers support alongside £12 million already committed to helping small and medium-sized businesses adopt AI. The latest funding is expected to support around 6,000 young Londoners who are not in education, employment or training.

The taskforce argued that AI-related labour market disruption is more likely to emerge gradually through declining entry-level opportunities and weaker career progression than through sudden waves of redundancies.

It also called for greater devolution of skills funding, employment incentives and AI transition policies to enable London to respond more effectively to local labour market changes.

Why does it matter?

The report shifts attention from the headline question of whether AI will eliminate jobs to the more immediate challenge of how labour markets adapt to technological change. By focusing on early warning systems, workforce planning and skills development, London is treating AI as a long-term governance issue rather than waiting for unemployment figures to reveal problems.

The recommendations also illustrate a broader trend towards place-based AI governance. Rather than relying solely on national policies, cities and regional authorities are increasingly seeking tailored tools to manage AI’s economic and social impacts while ensuring workers, employers, and educators can shape the transition together.

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