Manchester crowned UK’s most AI ready city in UK

Manchester has been crowned the UK’s most AI-ready city in 2025, according to new research. 

For the second consecutive year, Manchester has topped the rankings in the SAS AI Cities Index 2025, making it the city best positioned to harness the economic and social potential of AI. 

The annual index produced by data and AI company, SAS, evaluates cities across seven key criteria, including job opportunities, innovation funding secured, education opportunities, and business activity in the AI sector. 

Manchester’s ranking suggests it could be a prime candidate for designation as an official AI Growth Zone under the UK Government’s AI Action Plan, which was announced earlier this year. The plan is designed to help AI drive economic growth, improve public services, and enhance national security, with a clear emphasis on regional innovation beyond the capital. 

Often credited as the birthplace of the industrial revolution, Manchester has cemented its status as a powerhouse of innovation. With the highest number of AI-related jobs within a five-mile radius and businesses in Manchester receiving an average of nearly £77,000 in Innovate UK funding per qualifying company, the city is attracting both talent and capital investment. 

Manchester also has more than 200 businesses specialising in AI based in the city, according to the research, although it was held back by having some of the slowest broadband speeds of the cities analysed. 

The last 12 months also marked the launch of the Manchester Prize – a £1 million award recognising startups using AI to unlock transformative innovation. Named in honour of the city’s historic contributions to computing, the prize is part of a growing local ecosystem that aligns directly with the government’s call for AI-driven regional growth.

Manchester’s dominance in the AI landscape is further reflected in recent developments, including the appointment of a new CEO at the University of Manchester’s Innovation Factory, the organisation responsible for commercialising research and supporting emerging tech ventures. 

Greater Manchester’s influence is also seen in Salford, which was fifth in the Index. Salford boasts the highest number of AI-related events and some of the fastest broadband speeds in the region. As the home of MediaCity – a major technology and media hub – Salford continues to attract industry leaders such as the BBC and ITV. Notably, ITV recently announced plans to use AI in developing new programme ideas.

The most AI-ready cities in the UK

1 – Manchester

2 – Leeds

3 – St Albans

4 – Bristol 

5 – Salford

Glyn Townsend, Senior Director of Education Services at SAS for Europe, the Middle East and Africa said: 

“The Government’s AI Opportunities Action Plan is a critical step towards putting the UK on the right path, and cities like Manchester are already showing what it can look like in action. Targeted investment, education pathways, and thriving startup scenes are coming together to create world-class innovation clusters. 

“Manchester, in particular, is proving that AI excellence doesn’t need to be London-centric. The city’s growth highlights the power of regional investment to drive real impact. 

“Manchester is setting the standard for how local economies can harness AI to boost jobs, opportunities and long-term economic growth. However, Manchester’s leading position is also a clear reminder that if the UK is serious about becoming a global AI leader, other areas also need funding and support to ensure that AI is accessible and impactful for every region and community.”

Readers can find the full report here.

Methodology 

SAS looked at seven key indicators, including: 

• The number of AI-related jobs within a 5-mile radius, according to Indeed.
• The number of AI-related events within 25 miles, according to MeetUp.
• How many official Hackathons have taken place in each city in the last year, according to Hackathon.co.uk. 
• Average broadband speeds by city, using postcode data for business speeds from Compare The Market. 
• The number of AI-related courses in each university, based on every course that came up with “artificial intelligence” in the course description when searching on all courses. 
• The number of businesses based in each city with a focus on AI, according to LinkedIn. 
• The average R&D investment spend in each city per business, according to Innovate UK. 

SAS used this data and turned it into an index using a weighted scoring model to rank cities and London boroughs across these metrics to reveal a score out of 700. Data is correct as of March 2025.