Sadiq Khan's £12m AI Boost For Small Businesses Could Lead To New Innovations In Entertainment
Using AI, small businesses can run detailed market research and get hold of data that they couldn’t have imagined having access to in the past. This can help them come up with innovations that could attract a lot of interest.
Author:James RowleySep 08, 20261.3K Shares19.5K Views
London Tech Week brought several major technology announcements for the capital in June 2026.
One of the most notable of these was Sir Sadiq Khan’s promise to invest £12 million to assist small and medium-sized enterprises in adopting AI technology.
This will be used in a variety of industries, but it’s particularly interesting to think about how it could impact entertainment. Perhaps AI could help level the playing field and allow smaller businesses to innovate and compete with industry leaders.
How to Use AI in Your Business in 2026
Khan’s Pledge Announced At London Tech Week
Khan announced the £12 million investmentat London Tech Week in June, and said that the funding would be spread across three years. The idea is to aid small businesses in adopting AI, rather than simply hand them money to purchase new software.
It seems that Khan’s administration may have realised that larger businesses with the money to splash on AI could end up widening the gap and making it even harder for smaller businesses to compete over the next decade.
By putting up this investment, the mission is to reduce the gap and give smaller companies a chance. There will be expert mentoring and workshops, along with tailored guidance, meaning businesses that take advantage of it could set themselves up well for the future.
How The £12m AI Programme Will Work
More details about the programme have emerged since its original announcement. Support is expected to begin rolling out in phases from autumn 2026, with the scheme structured around three stages designed to move businesses from initial interest in AI towards practical implementation.
The first stage, Explore, will focus on AI-readiness assessments and helping businesses understand where the technology could realistically add value. The Adoptstage will then provide workshops, peer learning and practical support for businesses ready to begin using AI tools.
Businesses that want to go further will be able to move into the Integratestage. This is expected to include an AI leadership accelerator and one-to-one consultancy aimed at helping companies embed AI responsibly, strengthen governance and measure its impact.
For smaller entertainment businesses, that type of support could be particularly relevant. AI tools can already assist with audience research, content planning, customer service, marketing analysis, translation, captioning and personalised recommendations.
The programme does not guarantee that individual entertainment businesses will develop successful new products, but it could make advanced AI tools and expertise more accessible to companies that previously lacked the resources to experiment with them.
Why Could It Lead To Innovations In Entertainment?
Helping out small businesses in this way could lead to more innovation in sectors like entertainment. It’s an industry where, if a new company manages to come up with a solid idea, it stands a good chance of becoming successful. This has been seen with countless ideas over the years, such as Spotify transforming music streaming and Netflix changing the way audiences consume television.
AI could help people come up with fresh ideas that are likely to appeal to a large audience. For example, coming up with the next gaming crossover could be a huge hit. A recent invention in the iGaming market, Slingo online combines slots and bingo, meaning that it can reach players who enjoy both those game types. The introduction of branded titles such as Slingo The Godfather and Slingo Deadliest Catch helped it to reach even more people.
Using AI, small businesses can run detailed market research and get hold of data that they couldn’t have imagined having access to in the past. This can help them come up with innovations that could attract a lot of interest.
Live video is another area where smaller companies may experiment with the technology, as AI and live streaming in Londonbegin to overlap through automated production, accessibility and audience tools.
AI Will Help Small Businesses In Other Industries Too
The potential benefits of Khan’s investment will go beyond entertainment too, and help companies in countless other industries. For example, smaller retailers can use it to make personalised product suggestions in the same way that giants like Amazon do. Even restaurants could use the technology to understand what their customers prefer and make tweaks to the menu.
10 Ways Small Business Can Use AI Now and Why It Matters
The programme is intended to help put smaller businesses on a more equal footingas AI adoption accelerates. Its real impact will depend on how many SMEs participate, how effectively they use the available support and whether the programme produces measurable improvements in productivity and innovation.
With the first phases expected to begin from autumn 2026, the results should become clearer as businesses start putting the support into practice.
James Rowley
Author
James Rowley is a London-based writer and researcher covering London life, cultural geography, London travel, live London webcam pages and selected public figures across entertainment, sport, business and public life.
For over 15 years, he has focused on verified sources, first-hand local context and clear explanations that help readers understand both places and people more deeply. His work combines street-level London knowledge with careful research into career credits, media work, business interests and, where relevant, transparently explained net worth estimates.
He writes and reviews articles published on LondonWebcam.
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