London has been dubbed the artificial intelligence (AI) capital of Europe, with double the number of AI firms as closest rivals Paris and Berlin combined.

The announcement comes as part of research commissioned by the Mayor of London, Sadiq Khan, which maps the capital’s AI ecosystem, highlighting the strengths and complexities of the industry and its growing importance to the UK economy.

London is home to 758 AI companies, which specialise across 30 different industries with particular strengths in insurance, finance and law. Some 645 of these companies have a headquarters in the capital.

In 2017, investment in London’s AI companies grew by more than 50 per cent to more than £200 million. This represented approximately 10 per cent of the record £2.45 billion raised by London’s technology firms in 2017. This includes substantial deals for companies including Babylon Health (£47.5 million), Callsign (£26.9 million) and Starship Technologies (£13.9 million).

“There are few areas of innovation that have the power to define our future economy and society more than artificial intelligence,” said Sadiq Khan.

“The research describes a city with a rich technology ecosystem, a strong pipeline of AI innovation and an academic and investment base set up for the long term. London's unique global status as a capital of finance, business, government and technology is our standout asset. Everything entrepreneurs need is here in one place - not least access to clients.”

In April, the UK government announced plans to collaborate with more than 50 businesses and organisations to develop a £1 billion deal to put the UK at the forefront of the AI industry.

However, shadow chancellor John McDonnell warned that effective regulation was be needed to realise the benefits of such technology.

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