London is ahead of every major European city on AI adoption. Nearly three-quarters (72%) of organisations say they consistently use at least one AI tool. That puts us ahead of Paris, Stockholm, and every other major European city. Nationally, nearly two-thirds of UK businesses have adopted AI, up from just over half last year. This growth in AI adoption is helping to solve many challenges facing the UK, such as addressing NHS waiting times for surgery. UK startup Proximie, for example, is using AI-powered operating room technology to cut waiting lists and make operating rooms more efficient.

We should be proud that we are leading on AI adoption. But we mustn’t be complacent.

Only 24% of UK AI adopters have reached advanced use – combining multiple models, building custom solutions, deploying agentic AI that plans and acts rather than responds. Those who report advanced use see efficiency gains of 68% versus 40% among basic users. That gap represents an estimated £35 billion in unrealised productivity gains by 2030.

So, what stands between where we are and where we could be? Among the biggest constraints is one we can act on now: Talent.

London-based firms pay a 45% salary premium for employees with strong AI skills, the highest anywhere in Europe. Yet it takes an average of 9.5 months to fill a role. Nationally, half of all UK organisations cite AI and digital skills shortages as their single biggest barrier to growth. Supply simply isn’t keeping pace.

This isn’t only a London problem. The North West, North East and Wales are all accelerating faster than the capital from a lower base. That’s encouraging. But regional momentum without the skills to sustain it risks stalling before it reaches its potential. The whole country needs to move together.

If Britain wants to turn its AI lead into lasting economic growth, three things need to happen.

First, we need clear pathways. Two-thirds of UK employees say they want to learn new AI skills, and nearly half say that the need is urgent – yet more than a third don’t know where to start, and three in ten can’t find appropriate training. The government’s AI Opportunities Action Plan, AI Skills Boost pledge, and the expansion of programmes like the Spärck AI Scholarships show steps are already being taken to address these challenges.

Second, we need programmes that reach people at scale. 84% of businesses expect AI skills to be critical within five years, yet only 17% say they have a strong skillset today. That gap won’t close through the traditional education pipeline alone – it needs partnerships with accountability and jobs at the end. Our Skills to Jobs Tech Alliance aims to reach 100,000 people with AI skills by 2030, working hand in hand with UK universities and partners to offer industry-relevant training.

Third, we need to level the playing field. The AI opportunity cannot be available only to those already in tech. The data shows 47% of older workers and 52% of those not in employment, education or training rate their AI skills as poor. Our AWS re/Start programme has been placing those who are unemployed or underemployed into cloud and AI careers since we first piloted it in the UK in 2017.

The stakes are high. Almost half of UK-based AI startups say they would consider leaving the country to scale. While that’s driven by many factors, ensuring access to AI talent is one reason to stay. All parts of the UK ecosystem – industry, government, investors – must work together to retain our innovators and uplevel our AI talent.

I remain optimistic about the UK’s future. We have world-class universities, deep technical talent, and a startup ecosystem that punches well above its weight. But ambition on its own isn’t enough – speed is of the essence. The businesses pulling ahead are making bold decisions now. The question is how the UK can accelerate its lead while enabling everyone to benefit from the AI opportunity.

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Alison Kay is Vice President and Managing Director of Amazon Web Services, UK & Ireland. AWS’s ‘Unlocking the UK’s AI Potential 2026’ report, produced with Strand Partners, surveyed 1,000 UK business leaders and 1,000 members of the public.

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