Outside of London, Manchester, not Oxford or Cambridge, is the UK's most AI-enabled city, according to a report by AI and analytics software company SAS.
The researchers looked at the number of AI-related companies in each city, the number of college courses with an AI component in each city, and the number of jobs within a five-mile radius.
We also took into account the number of AI events and hackathons, the increase in Google searches for related AI solutions over the past year, and the average amount of Innovate UK grants per company by location.
“AI-enabled cities will be able to pioneer more resilient cities and even provide more accessible services to people with disabilities while meeting new standards for urban living, including achieving sustainability goals,” said Glyn Townsend, senior director, Education Services, EMEA, SAS.
SAS AI City Index 2024 Manchester had the highest number of AI-related companies, the most hackathons, and a large number of AI-related jobs within a five-mile radius.
Meanwhile, the Universities of Cambridge and Oxford have dropped to 9th and 16th place respectively.
Salford in Greater Manchester showed the biggest improvement in AI readiness, climbing 68 places to third place. Funding awarded to Salford businesses by the UK's innovation agency, Innovate UK, totals more than £100 million.
Bottom of the AI readiness list is Truro, followed by Newry and Peterborough despite being closer to Cambridge.
SAS also looked at the AI readiness of every London borough and found that Camden, home to University College London (UCL) and the University of London, came out on top, ahead of boroughs such as Westminster, Southwark and Hackney. Kensington and Chelsea, which was bottom of the rankings in 2023, has risen to 18th place, while Bexley is last.
The report highlighted the importance of looking beyond the obvious places to maximise the chances of recruiting talented staff.
“80% of UK organisations are struggling to recruit applicants with the right skills and without enough tech talent, businesses will face the challenge of remaining competitive in an increasingly tech-driven world,” Townsend warned.
“And if talent is concentrated in certain regions and cities, it could further exacerbate regional disparities. All cities need to be prepared to play their part in addressing digital and data literacy gaps, ensuring support for investment applications, and ultimately helping to drive the economy of the future.”
Manchester has seen a number of AI innovations and initiatives in the last year, most notably a partnership between Manchester United and Manchester Metropolitan University aimed at improving team performance by analysing areas that could be improved to assist the team coach.
The region was recently named the fastest growing tech hub in the north of England after companies in the region raised more than £500 million in funding in 2022.
The city is home to more than 60,000 tech workers across more than 1,600 startups and large companies, according to government statistics.
