London's small businesses are set to receive a major technology boost after Mayor Sadiq Khan unveiled a £12 million programme focused on accelerating artificial intelligence adoption across the capital.

The initiative will invest £4 million annually over the next three years, providing practical support, training, and guidance to help SMEs integrate AI into everyday business operations.

City Hall believes the programme could help thousands of businesses improve productivity, streamline processes, and unlock new growth opportunities at a time when AI is rapidly transforming industries worldwide.

Despite growing interest in artificial intelligence, adoption remains relatively low among smaller firms. Officials say many business owners are still uncertain about how to use AI effectively, while concerns about costs, regulation, and ethics continue to slow progress.

Khan described AI as a significant opportunity for London's economy, arguing that supporting businesses with new technologies can help create better jobs, increase competitiveness, and drive long-term economic growth.

The investment forms part of a wider effort to position London as a leading global centre for innovation, digital skills, and AI-driven business development.