Sadiq Khan has insisted London is “busy writing” the future of AI despite the “dizzying” risks posed by the technology, as fresh figures show the capital has reclaimed its position as Europe’s leading tech hub.

The Mayor of London said AI presents both “impacts and opportunities”, but argued the capital was well placed to benefit from the sector’s rapid growth, pointing to a surge in investment into London startups and AI firms.

“We face some monumental challenges, from conflict to the climate emergency, from the cost of living to the impacts and opportunities of AI,” Khan announced at the opening of SXSW on Monday.

“At times, it feels like the obstacles we must overcome are as dizzying as they are dangerous.”

His comments come days after Dealroom data showed London had overtaken Paris to become Europe’s top technology ecosystem once again.

Startups in the capital raised $17.7bn (£13.2bn) last year, while AI investment almost doubled to $7bn.

Khan said London was “proud to be the tech capital of Europe and a global leader in AI”, citing companies including DeepMind, Revolut, Synthesia and Isomorphic Labs.

“In the first quarter of this year, London-based startups are off to a flying start, pulling in over a third of European equity and over half of all funding in AI,” he said.

“This just goes to show that here in London, we’re not waiting for the future to arrive – we’re busy writing it.”

Capital races to secure tech crown

London has increasingly become the European base for major US AI firms.

Anthropic recently announced plans to expand its London presence, while OpenAI is establishing a permanent office in the capital as competition for AI talent intensifies.

The concentration of AI firms around King’s Cross has helped reinforce London’s position as Europe’s largest startup ecosystem, with the city now home to 138 unicorns, including Wayve, ElevenLabs, Monzo and Revolut.

Khan argued London’s strength comes from its ability to bring together different industries and disciplines: “The best ideas don’t really come from one group of people with the same background, expertise or experiences. They come from worlds colliding.”

The mayor also used the speech to contrast London’s approach with what he described as the rise of “authoritarian forces” seeking to drag societies “back into the dark past”.

“Here in London, we’ve got no interest in winding back the clock on progress,” Khan said.

“Instead, we’re focused on moving forwards, on looking squarely into the bright face of the future and rushing full speed towards it.”

His words land among a wider debate over Britain’s approach to AI, with former Downing Street chief of staff Morgan McSweeney last week arguing democracies must learn to master the technology rather than simply regulate it, while former prime minister Tony Blair has urged ministers to put AI at the centre of the government’s growth agenda.

For Khan, the challenge is ensuring London remains at the forefront of that race. “There’s no denying we’re living in turbulent times,” he said. “But I just don’t believe we’ll meet this moment by looking inwards.”