LREF 2024: Why London is ideal for fostering the synergies between science and AI

When we think of science, what tends to spring to mind is people in lab coats undertaking complicated experiments with biological matter that will cure diseases. In reality, however it is far broader spanning a multitude of sub-sectors that all require different types of real estate. Artificial Intelligence is arguably one of the fastest growing of these and is likely to have a significant impact on the market, especially as it continues to be integrated into nearly every aspect of science moving forward.

With this in mind London, as a key component of the golden triangle, is well placed to foster these synergies. With the first purpose-built lab space now coming out of the ground in the capital, it presents an opportunity to be truly cohesive.

Why London?

First and foremost, the UK has the academic credentials to make this possible. Three of the top 20 global universities for data science and AI are in the UK, two of which are in London – Imperial and UCL. The UK AI market is worth more than $16.8bn, according to the US International Trade Administration, and is expected to grow to $801.6bn by the middle of the next decade.

To put this into context, this $1tn valuation by 2035 is five times the UK grocery market today, or 10 times the UK’s automotive industry.

Venture capital also plays a role. At present, the UK is third place, with a 4% share, behind the US (60%) and China (15%) when it comes to how much money has been raised by AI companies. Of the UK total, London headquartered companies account for two-thirds of the venture capital raised over this five-year time period. Alongside Oxford and Cambridge, the golden triangle makes up as much as 80% of this figure.

What is the link between science and AI?

AI powered drug discovery is currently the second most important emerging “space”’, out of 15 global sub-sectors when it comes to healthcare-related businesses, according to PitchBook. It has seen more than £14bn of capital raised globally.

Regarding potential opportunity, if we look at the top 30 AI powered drug discovery companies, only seven of these are currently in the UK, with four in London. Given the capital’s ability to accommodate these businesses owing to a healthy pipeline of science-related space, we expect this number to grow in the near future.

There is also a substantial talent pool. Marco Polo, a think tank of the Paulson Institute, suggests that the UK has 8% of the top talent in the global AI sector, measured by those researchers and experts deemed to be in the top 2%. This is a strong result and shows the potential of the UK to drive AI’s impact on the science sector moving forward.

What about real estate?

Many of the larger players in the AI field, such as Google and Meta are already well established in London and we have seen the life sciences sector, although still relatively nascent, growing fast. Given the pipeline of a wider range of purpose-built lab spaces, from incubator to scale-up facilities, this should provide the essential infrastructure to support this growth.  

Ultimately, AI is set to play a considerable role in the future of science, and London, given its credentials, along with the development of new space, will no doubt be at the forefront of the sector’s evolution.