London’s AI companies are changing what office demand looks like. The sector has grown by 85% to more than 5,800 companies and £23.9 billion in revenue, and those firms are clustering in specific parts of the city with very specific workspace requirements.
London’s advantage is density. World-class research institutions like UCL, Imperial, and King’s College supply talent. Venture capital flows through the city more than anywhere else in Europe. And co-working marketplaces, providers, accelerators, and incubators — like Tally Workspace, Level39, and Plexal — give founders the networks and infrastructure to scale. Add government-backed AI strategies and innovation zones, and the result is a city that is redefining what an “AI hub” looks like.
How AI companies are changing office demand
AI companies are scaling in ways that look different to traditional tech firms:
Revenue per head is higher. Many AI companies operate with leaner teams but generate strong margins. That translates into higher workspace budgets per employee.
In-person collaboration is valued. Unlike remote-first software startups, many AI founders are emerging from accelerators and want more days together in the office to collaborate on product development.
Amenities are shifting. Demand is high for on-site barista coffee, gyms, cycle storage, showers, and catered lunches. The model resembles the campus-style setups once made famous by Google and Facebook — but adapted for smaller, high-growth teams.
Security and infrastructure matter. With sensitive datasets and proprietary models at stake, AI companies are asking for enhanced physical and cyber security features in their offices.
The trend is clear: AI companies aren’t shrinking their footprint in favour of fully remote models. They’re re-investing in premium, collaboration-focused space that reflects both their growth ambitions and the need for proximity to clients, partners, and regulators.
Where London’s AI firms are clustering
Different neighbourhoods are becoming magnets for different types of AI activity.
King’s Cross (”The Knowledge Quarter”)
Home to the Alan Turing Institute and the Francis Crick Institute, this area has become one of London’s most important knowledge and research centres. Google is building its new “landscraper” HQ here, and DeepMind has set up its base in the neighbourhood. Startups like Capsa AI and Causaly have also chosen King’s Cross for its unrivalled mix of academia, corporates, and venture investors.
East London — Shoreditch & Old Street (“Silicon Roundabout”)
Still London’s best-known startup hub, Shoreditch attracts AI companies looking for creative energy and proximity to co-working spaces. Firms like VEED.IO and Granola have established themselves here, alongside hundreds of early-stage startups clustering around City Road and Wenlock Road.
Fitzrovia & the West End
With its mix of prestigious addresses and proximity to clients, Fitzrovia is drawing AI companies with enterprise ambitions. V7 and CoLoop have chosen Fitzrovia, while Eleven Labs has a base in nearby Soho. The West End is increasingly attractive for companies wanting access to senior talent and corporate partnerships.
Borough, Moorgate & Holborn
AI companies like Magentic (Borough), Xapien (Moorgate), and Speechmatics (Holborn) are tapping into central locations with strong transport links and established legal and financial infrastructure.
Canary Wharf & The City
With fintech AI continuing to expand, Canary Wharf is building its own AI credentials. Proximity to financial institutions and regulators makes this area a logical choice for compliance-focused and trading-oriented AI startups.
Other clusters
Data shows that Islington, Camden, and Aldgate are emerging pockets of AI growth, reflecting the broader decentralisation of London’s tech scene.
AI offices by the numbers
Our deep-dive analysis of Companies House data confirms where most of the action is happening:
Overall, London’s AI firms are distributed widely, but with distinct concentrations around Fitzrovia, Shoreditch, and King’s Cross. These areas offer the right mix of talent, transport, and networking — and that’s shaping where the next wave of AI growth will take place.
Housed in Techspace’s flagship 80,000+ sq ft redevelopment of a former gin distillery, the Hub brings together entrepreneurs, academics, investors, and policymakers under one roof. It’s more than just office space: members have access to a curated programme of events, workshops, and networking opportunities, alongside state-of-the-art facilities designed for high-growth AI teams.
Techspace Goswell Road itself sets a new bar for premium, sustainable workspaces in London. The building holds a BREEAM Excellent rating and comes equipped with:
Shared spaces built for workshops, showcases, and demos
The Hub has already attracted an impressive community. Companies like Harriet, Culted, Whalar, and Quench AI (founded by Kassai himself) are based here, alongside a growing list of early-stage AI startups and scaleups. The result is a high-density ecosystem where collaboration happens naturally, and access to investors, regulators, and talent is only a few desks away.
“The London AI Hub empowers and mobilises the UK’s AI community to ensure the UK remains a leading innovator on the global stage.”
Policy leaders agree. Peter Kyle, Secretary of State for Science, Innovation, and Technology, has highlighted the Hub as proof of the UK’s ambition to “turbocharge” AI. And Jonathan Bevan, CEO of Techspace, has called the Goswell Road launch a milestone, describing the Hub as “a space that inspires and empowers innovation.”
For AI companies, the appeal of the Hub is clear. It offers proximity to decision-makers — from policymakers to venture capital investors — as well as a recognised base within London’s thriving AI ecosystem. The programme of events and workshops gives members opportunities to engage with the latest thinking on responsible AI, commercialisation, and scaling. Just as importantly, the flexible, high-quality workspace is designed to grow with teams as they expand.
In just a few months, the London AI Hub has shifted from an ambitious idea to a working reality — one that’s helping shape the future of AI in the UK right now.
What this means for the future of workspaces for AI companies
The way AI companies approach their offices in 2025 looks very different from the last wave of tech growth. These aren’t sprawling teams filling floor after floor, but smaller headcounts with far higher investment per person. A 20-person AI startup might demand the kind of infrastructure once reserved for corporates — secure networks, soundproofed meeting rooms, wellness areas, and premium coffee on tap.
Hybrid working still plays a role, but unlike many SaaS startups that leaned heavily into remote-first models, AI companies are placing greater value on in-person collaboration. Their teams are often made up of researchers, engineers, and product leads who want to test, iterate, and problem-solve together. That changes the function of the office: it becomes less about rows of desks and more about collaboration zones, specialist labs, and spaces that encourage idea-sharing.
Amenities matter more than ever. AI companies know that talent is their biggest competitive advantage, so they’re investing in high-end, hospitality-style features that help attract and retain the best people — from cycle storage and showers to gyms, catered lunches, and barista coffee. The workplace isn’t just a cost centre; it’s part of the package that convinces someone to join and stay.
Location choices also reflect business strategy. Startups focused on life sciences are clustering near research hubs like King’s Cross. Those building financial AI tools are choosing Canary Wharf or Moorgate. Creative AI companies lean towards Shoreditch or Soho, where the energy of the neighbourhood aligns with their brand. The address on the door is more than symbolic; it signals to clients, partners, and future hires what kind of company you are.
These shifts are already reshaping London’s office market. Workspace providers are adapting quickly, tailoring fit-outs and services for AI firms whose needs don’t match the SaaS playbook of the 2010s. Expect to see more flexible contracts, buildings wired for high-security infrastructure, and premium amenities that blur the line between workplace and hospitality. For landlords and providers, it’s a reminder: AI companies may take up fewer desks, but their standards — and expectations — are far higher.
Offices that match AI teams’ ambitions
Whether you’re a two-person research team or a scale-up raising your Series B, the workspace you choose will influence your ability to hire, fundraise, and, ultimately, grow.
At Tally Workspace, we help AI companies discover flexible, inspiring offices across London’s hottest tech neighbourhoods — from Shoreditch lofts to King’s Cross labs — and even the London AI Hub itself.
The right space does more than give you an address; it gives you a seat at the table of the world’s most dynamic AI community.
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