London and South East firms gain

Eighty-three per cent of businesses using artificial intelligence in London and the South East report greater efficiency as a result, according to new research from NatWest, which found that just 6 per cent of current business users nationally have reached the stage where AI is transforming how their organisation operates.

In London, 81 per cent of businesses using AI report stronger innovation, and around seven in 10 say the technology is contributing to higher revenue and profitability, the bank’s flagship report found.

In the South East, 75 per cent of businesses using AI report increased innovation, and around two-thirds say AI is supporting stronger commercial performance.

NatWest said the results reflect the strengths of a regional economy built on sectors such as financial services, professional services, technology, life sciences and other knowledge-intensive industries.

Across the UK, 44 per cent of businesses already use AI, according to the report, with a further 41 per cent planning to adopt it within five years.

The bank said the biggest opportunity is still ahead, pointing to the small share of users that have reached the most advanced stage of adoption.

Separately, the Office for National Statistics reported in July that around 35 per cent of UK businesses with 10 or more employees were using AI by June 2026, up from around 12 per cent in late 2023, with only 10 per cent reporting extensive use across their operations.

Other recent surveys have also measured AI adoption. Research from Simply Business earlier this month found that AI use among UK small businesses had more than doubled to 47 per cent, while PwC warned in April that UK firms risked falling behind global leaders on AI investment and returns.

The NatWest report argues that technology alone will not determine which businesses succeed, and that trust is increasingly seen as a competitive advantage.

Among NatWest retail customers surveyed, 81 per cent said the ability to reach a real person when needed is the most important trust factor, while 77 per cent said they value reliability, human oversight and transparency around data use.

According to the bank, the findings suggest that businesses which retain human judgement, communicate openly about their use of AI and prioritise customer confidence will be best placed to realise the technology’s potential.

Catherine van Weenen, chair of the London and South East board at NatWest, said: “London and the South East are already seeing the benefits of AI, with businesses reporting stronger productivity, innovation and growth. For a region with strengths in sectors such as professional services, financial services and technology, the opportunity is significant.

“But the report also shows there is much more potential to unlock. While many businesses are experimenting with AI, relatively few have embedded it across their operations.”

She added: “Realising that opportunity will require people to remain at the heart of how AI is adopted. Trust matters. Businesses want the benefits of AI, but they also want human expertise, oversight and transparency. That’s why NatWest is helping businesses build the skills, confidence and connections they need to turn AI’s potential into long-term growth for London and the South East.”

Through the NatWest Accelerator, the bank said it will deliver 5,000 AI learning and adoption engagements across the UK over the next 12 months, aimed at helping businesses move from experimentation to impact.

In London and the South East, the support includes practical training, expert support, access to finance and the bank’s regional innovation network, alongside partnerships with universities including Oxford and Brighton.

The commitment follows NatWest’s move earlier this year to put all 60,000 of its own staff through AI ethics training, developed with the University of Edinburgh.

About the author

Amy Ingham

Amy Ingham is a reporter at Business Matters, covering UK business news with a focus on breaking news, business policy, late payments and insolvency. She joined the magazine in 2026 after completing the NCTJ Diploma in Journalism at Harlow College’s journalism school. Her recent reporting includes British Steel’s nationalisation and its impact on SME suppliers, the decline in late payments by large firms, and Insolvency Service director disqualifications. Reach her at aingham@cbmeg.co.uk.

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