Manchester named UK's most AI-ready city for second year
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.
It retained its lead thanks to having the highest number of AI-related jobs within a five-mile radius and an average of £77,000 in Innovate UK funding for AI purposes per qualifying company. The city is also home to more than 200 businesses that specialise in AI.
Greater Manchester’s influence continues with Salford in fifth place. Salford stands out for its fast broadband, high volume of AI events, and thriving media and tech presence at MediaCity – home to organisations like BBC and ITV, with the latter recently announcing it will use AI to generate programme ideas.
Leeds climbed to second place this year, driven by its strong academic offering. The city boasts more than 130 AI-related university courses across three institutions – surpassed only by Liverpool.
Dundee made the biggest leap, jumping 41 spots thanks to a sharp rise in AI-focused courses and excellent broadband speeds, enhancing access to cloud-based tools and remote work. Meanwhile, St Albans rose 17 places to position three, likely boosted by its commuter access to London and increasing job availability.
Previous cities that dominated the rankings include Cambridge, which was placed eighth this year, and Edinburgh, which fell to ninth place.
The study also analysed the most AI-ready boroughs in London, with Camden, home to University College London (UCL) and the London AI Campus, in top spot, followed by Southwark and Tower Hamlets.
The most AI-ready cities in the UK
- Manchester
- Leeds
- St Albans
- Bristol
- Salford
Glyn Townsend, Senior Director of Education Services at SAS for Europe, the Middle East and Africa said: “Manchester’s continued lead in the SAS AI Cities Index shows the huge potential of regional innovation when it’s properly supported – but it also highlights the urgent need to extend that momentum to smaller cities and towns across the UK.
“As the government pushes forward with its AI Action Plan, it's essential that investment, infrastructure, and education opportunities are scaled beyond the big urban centres. Cities like Dundee and St Albans making major leaps in this year’s rankings prove that with the right support, emerging hubs can play a critical role in the UK’s AI future.
“If we want to unlock the full economic and social potential of AI, we need to build an inclusive, nationwide ecosystem – one where no region is left behind.”
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