Manchester Tops UK as Most AI-Ready City for Second Year Running

Manchester has reaffirmed its position as the UK’s most AI-ready city for the second consecutive year, according to the 2025 SAS AI Cities Index, a comprehensive study by global data and AI leader SAS. This recognition underscores Manchester’s rapid evolution into a powerhouse of artificial intelligence innovation, driven by a thriving ecosystem of jobs, businesses, funding, and education.

Positioned at the forefront of the UK’s digital economy, Manchester is setting a national benchmark for regional AI growth and innovation beyond London.

A Hub of AI Employment and Business Growth

The 2025 SAS AI Cities Index reveals that Manchester boasts the highest concentration of AI-related jobs within a five-mile radius of its city centre. Over 200 businesses now specialise in AI development, implementation, and consulting across industries such as healthcare, finance, cybersecurity, and digital manufacturing.

This dense ecosystem has become a magnet for AI professionals and global investors, driving an estimated £1 billion contribution to the regional economy. The city’s expanding digital base highlights its status as the UK’s northern capital for AI innovation and enterprise.

Innovation Funding and R&D Investment

Innovation funding plays a central role in Manchester’s AI success. The city’s AI companies receive an average of £77,000 in Innovate UK funding per qualifying firm, signalling strong national confidence in Manchester’s technological capabilities.

This capital injection supports high-impact AI research, product development, and cross-sector collaboration between startups, universities, and major enterprises. Alongside funding, R&D investment per business continues to rise, reinforcing Manchester’s long-term commitment to building a resilient, innovation-driven economy.

Academic Excellence and AI Talent Pipeline

Manchester’s universities are key to its continued AI dominance. The University of Manchester and Manchester Metropolitan University offer extensive programs in AI, machine learning, and data science, ensuring a steady flow of skilled graduates into the city’s workforce.

This academic foundation sustains Manchester’s edge in research, experimentation, and workforce readiness, linking education directly to the needs of its fast-growing tech sector.

Vibrant AI Community and Industry Collaboration

Beyond academia, Manchester thrives on its collaborative community culture. Events such as the Manchester AI Festival, AI Tech North, and the Digital Skills Festival attract thousands of developers, entrepreneurs, and researchers every year.

These gatherings strengthen partnerships between startups, corporates, and policymakers, turning the city into a living lab for practical AI applications. The result is an ecosystem that promotes knowledge sharing, inclusion, and innovation at scale.

Pathway to Official AI Growth Zone Status

Looking ahead, Manchester stands as a strong candidate for official designation as an AI Growth Zone under the UK Government’s AI Action Plan. The initiative aims to extend AI-led innovation and economic growth beyond London, empowering regional cities with increased funding, research partnerships, and policy backing.

If granted, this status could further accelerate Manchester’s ability to scale AI applications across industries, reinforcing its leadership in the UK’s digital transformation agenda.

Greater Manchester’s Expanding AI Ecosystem

Manchester’s influence extends across Greater Manchester, with Salford securing fifth place in the 2025 SAS Index. Anchored by MediaCityUK, Salford’s strong broadband connectivity, media presence, and growing startup community complement Manchester’s AI economy.

Together, they form a regional innovation corridor that enhances the area’s attractiveness for tech investment and development.

Other Rising AI Hubs in the UK

While Manchester dominates, other UK cities are quickly catching up.

• Leeds ranked second, recognised for its strong academic infrastructure and AI-focused research.

• Dundee stood out for its AI-oriented education programs and robust broadband infrastructure, which support its emerging startup ecosystem.

These advancements reflect a nationwide shift toward distributed AI innovation, with multiple cities building specialised strengths across education, research, and connectivity.

Connectivity Challenges and Future Goals

Despite its leadership, Manchester faces digital infrastructure challenges, particularly slower broadband speeds compared to some smaller cities. Experts warn that upgrading connectivity will be vital to maintaining competitiveness, especially for data-intensive AI research and real-time applications.

City planners and private partners are already exploring high-speed network expansion projects to support the next phase of AI deployment.

A Legacy of Innovation and Future Promise

Manchester’s position at the top of the SAS AI Cities Index is a natural continuation of its legacy as the birthplace of the Industrial Revolution — now transformed into a digital revolution. The city combines historical industrial strength with modern data-driven innovation, establishing itself as a leading AI hub not just in the UK, but across Europe.

As the UK accelerates its AI Action Plan, Manchester’s continued leadership represents the promise of inclusive innovation, job creation, and economic resilience that will define the nation’s next decade of growth.

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Frequently Asked Questions (FAQs)

1. Why is Manchester considered the UK’s most AI-ready city in 2025?

Manchester earned the top spot in the 2025 SAS AI Cities Index for its strong AI job market, research excellence, and innovation funding. The city leads in AI-related employment, business activity, and collaboration between universities, startups, and major enterprises.

2. What is the SAS AI Cities Index?

The SAS AI Cities Index is a study conducted by global analytics leader SAS that evaluates UK cities on their AI readiness. It measures factors like job availability, education, innovation funding, digital infrastructure, and business growth.

3. How many AI businesses operate in Manchester?

Over 200 businesses in Manchester specialise in artificial intelligence development, consulting, and application across industries such as healthcare, finance, cybersecurity, and digital manufacturing.

4. How much does Manchester’s AI sector contribute to the economy?

Manchester’s AI ecosystem contributes approximately £1 billion to the regional economy through job creation, innovation, and foreign investment.

5. How is AI innovation funded in Manchester?

Manchester AI firms receive an average of £77,000 in Innovate UK funding per qualifying company. This supports research, product development, and collaboration between academia and industry.

6. Which universities in Manchester lead in AI education and research?

The University of Manchester and Manchester Metropolitan University offer leading programs in AI, data science, and machine learning. They play a crucial role in developing local AI talent and driving applied research.

7. What major AI events are hosted in Manchester?

Manchester hosts several high-profile AI events, including:

• Manchester AI Festival

• AI Tech North

• Digital Skills Festival
  These events bring together innovators, researchers, and investors to exchange ideas and showcase emerging technologies.

8. What is an AI Growth Zone, and why is Manchester a candidate?

An AI Growth Zone is a UK Government initiative under the AI Action Plan aimed at promoting regional AI innovation. Manchester is a top candidate due to its strong AI ecosystem, academic partnerships, and economic impact.

9. How does Greater Manchester contribute to the region’s AI success?

Beyond the city itself, Salford ranked fifth in the 2025 SAS Index. Anchored by MediaCityUK, Salford enhances Manchester’s AI economy through digital media, strong connectivity, and a growing startup scene.

10. Which other UK cities are emerging as AI hubs?

Other rising AI cities include:

• Leeds – known for its AI research and academic excellence.

• Dundee – recognised for AI-oriented education and digital infrastructure.
  These cities are part of a wider UK trend toward decentralised AI innovation.