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Kicking things off on day two of London Tech Week 2025, the morning keynotes brought together Jean Innes, CEO of the Alan Turing Institute, and Matt Clifford, AI advisor to the UK government, for a sobering yet hopeful conversation.

AI isn’t just about growth, they argued – it’s about bringing people with us. A people-first approach must match productivity gains, and AI’s sustainability challenges shouldn’t be ignored. Still, as Clifford put it: “This is the UK’s moment of potential.”

Later, Arthur Mensch, CEO of Mistral AI, gave us something to chew on. He introduced Magistral, a new open-source reasoning model designed for multilingual use across Europe, and lightweight enough to run on a laptop. Mensch called on Europe to lead in open-source AI, pushing for investment in computing and semiconductors while acknowledging that most firms will scale up their tools before refining them for a specific purpose.

His most striking analogy? That AI development paths will likely begin with heavy models and shrink once use cases become clearer – a cycle we’re already starting to see.

Cybersecurity: Who’s really in control?

Things got tense on the main stage as experts debated who has the upper hand in cybersecurity – defenders or attackers. Spoiler: the hackers are winning right now, thanks to AI. Richard Horne from the NCSC used a carbon-fibre tennis racket metaphor to make his point – once one player upgrades, everyone has to. According to MP Feryal Clark, too many UK businesses are still using wooden rackets.

The takeaway? Cyber basics matter more than shiny tech. And while AI opens new doors, it also opens new vulnerabilities.

Closing the skills gap (and stopping the brain drain)

In an exchange between Dawn Butler MP and tech leaders such as Faculty CEO, Marc Warner, one message stood out: the UK risks losing its talent edge. Warner highlighted that UK-based engineers are earning 300% less than their counterparts in California – a stark contrast to the past, when London led the way in pay. Fixing the skills gap isn’t just about education; it’s about incentives, policy, and retention.

Butler suggested a “tax to leave” model for firms that take government funding and then relocate abroad – not official policy (yet), but a signal of growing concern around UK tech’s long-term resilience.

Tech for good – in unexpected places

Some of the most meaningful applications of tech came from unlikely sectors. The Alzheimer’s Society highlighted its work with startups developing wearable devices and monitoring tools for individuals living with dementia. Meanwhile, RioTinto – yes, the mining giant – used its platform to connect with green tech startups in a bid to make extraction more sustainable.

Then there was the Swift Centre, a hidden gem offering human-led forecasting that claims better-than-algorithmic accuracy in predicting major events, from recession trends to geopolitical shocks.

My final thoughts?

AI isn’t just a headline at London Tech Week 2025. It’s in the exhibition stands, the policy talks, the public sector, and the startups quietly solving big problems. From ethical guardrails to startup innovation and Europe’s AI strategy, day two proved that tech’s future won’t be written by one sector, country, or company alone. However, one thing is for sure: the UK has a role to play, and the eyes of the world are watching.

Stay tuned – we’ll be back with more trends and takeaways from the LTW floor.

Effie Williams

Effie is a Senior Account Executive at Liberty Communications

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