SAS AI Cities Index 2024 - where is the most AI ready in the UK?
By Glyn Townsend, Senior Director, Education Services – SAS EMEA
It’s poised to solve some of the world’s biggest challenges - from a climate change emergency to tackling dementia; boosting GDP, to improving the education system. Artificial intelligence (AI) is reshaping the world as we know it.
According to the UK government, the AI sector contributes more than £3.7 billion to the economy every year - and by 2035, it’s forecast to grow to over $1 trillion in the UK.
Earlier this year, the government launched the National AI Strategy, a 10-year action plan aimed at closing the skills gap and positioning the UK as a global leader in science and technology, aspiring to become an 'AI superpower.'
As part of these efforts, the UK has allocated a £1.1 billion package to upskill thousands of students in AI and related technologies, involving the training of over 4,000 students at 65 centres for doctoral training across the UK.
The UK is home to the third highest number of startups – with 727 AI-related businesses being founded in the last 10 years – with only the United States and China innovating faster.
However, there are still many challenges to get ahead of the curve on artificial intelligence and help companies to expedite the adoption of cutting-edge technologies.
What’s the current status of AI across the UK?
With growing population pressures, climate resiliency challenges and an ageing infrastructure, being AI-ready is crucial for transforming cities and ensuring a great quality of life for people across the UK.
Economic growth is spurred on through job creation - and simply adopting new technologies isn’t enough to drive cities forward. Jobs that currently exist may not exist tomorrow, which could see the current talent shortage worsen.
What locations may struggle to find the resources to help them to ensure that their cities can meet future challenges effectively?
AI-ready cities will lead the way in being more resilient, while also meeting new urban living requirements, such as sustainability targets, and even making services more accessible to people with disabilities.
As a result, SAS has created the AI Cities 2024 Index, to understand, for the third year, which cities and London boroughs are leading the way in the UK in terms of being AI-ready, and which may need more support.
To do this, SAS looked at seven key indicators, including:
- The number of AI-related companies in each city
- The number of courses in universities which include an AI module
- The number of open jobs within a 5-mile radius
- The number of AI events
- The number of hackathons by city
- The increase in Google searches for relevant AI solutions in the last year
- The average InnovateUK grant, per business, by location.
SAS gave every city and London borough an index score for each separate data point, with equal weighting, to calculate an overall index score out of 700.
The most AI-ready cities and London boroughs
The UK’s second city, Manchester, has topped the index as the most AI-ready UK city for the first time. The northern powerhouse boasts the most AI-related companies outside of London, and the largest number of technology-focused events, to secure its top position.
Jobseekers are spoilt for choice when it comes to finding a company in data science and cloud analytics, with over 350 options available, creating a wealth of opportunities for people seeking careers and learning opportunities in AI, software and data analytics.
Manchester has had a number of AI innovations and initiatives in the last year, including the Red Devils themselves, Manchester United, turning to artificial intelligence in April 2024. The football club is working in partnership with Manchester Metropolitan University, to help improve the performance of their men’s, women’s and academy teams.
It also follows the inaugural Manchester Prize, a new initiative from the UK Department for Science, Innovation and Technology, which awards up to £1 million each year to the solutions that use AI for public good. The prize is named after the city due it being the birthplace of the world’s first electronic store-program computer, built at the University of Manchester.
Manchester overtook last year’s top city, Edinburgh, which has dropped eight places due to fewer job openings in the Scottish capital. However, Edinburgh still fares well for career opportunities - with over 200 AI-related businesses in Auld Reekie, and 87 hackathons coming up, a sign that people want to learn new programming skills in a fun, engaging way.
Birmingham was in second place due to its educational capabilities, with the city’s five universities home to the most AI-related university courses for both undergraduate and postgraduate students. In addition to this, InnovateUK has awarded multiple grants to businesses in Birmingham, at an average of £1.4 million per business.
Previously ranking first in the inaugural rankings in 2022, Cambridge has dropped 10 places – mainly due to Manchester overtaking it with the most AI-related job roles available.
Which cities have climbed up the rankings in the last year?
Salford, in greater Manchester, has climbed over 60 places to position 3, due to the huge amount of investment by InnovateUK. SAS research found that businesses have been awarded over £100 million in Salford - an average of over £14 million per business.
St Albans has also climbed 28 places, and Winchester by 36, in what could be seen as a reflection of this year’s new methodology, which includes search demand for AI solutions, and the number of hackathons.
The methodology is updated each year to reflect current trends and changes in the artificial intelligence space - and this year includes reference to the demand for generative AI.
The biggest movers:
- Salford - up 68 places
- Winchester - up 36
- Southend-on-Sea - up 34
- St Albans - up 28
- Wolverhampton - up 26
- Wrexham - up 24
- Bradford - up 24
- Doncaster - up 20
- Southampton - up 20
- Chichester - up 19
Many of the biggest movers are smaller cities that have made the top 50 this year, a sign that AI-readiness is becoming less concentrated and being taken seriously by more businesses, councils and educational institutions across the U
The most AI-ready London boroughs
Instead of looking at London as a whole, SAS identified the most AI-ready borough across the capital, based on size, scale, economy and talent pool. Otherwise it could skew the results disproportionately if London were included in the city rankings.
Camden tops the list, after not even making the top 10 last year. This surge is due to mass investment in the area, with InnovateUK awarding £84 million to businesses registered there - the highest amount offered to any borough. In 2024, Camden Council announced it’s working with Google on a learning project in artificial intelligence, to deliver an AI-focused campus in the borough.
Westminster and Southwark also made the top three. Both areas offer a multitude of courses focusing on AI and data science, and similar to Camden, have a variety of AI-focused companies to choose from.
Islington and Hillingdon didn’t make the top 10, but InnovateUK shows promising efforts to upskill these locations with large grants awarded, likely due to having popular university choices such as Brunel University of London and City University of London.
The least AI-ready cities:
SAS data shows a low number of AI investments in smaller cities with a limited number of AI-focused courses available in areas such as Truro, Peterborough and Bangor, Wales. This could be a sign that the cities that have fallen short are, in some cases, places that were unable to keep pace during the industrial and agricultural revolutions, and as a result have been playing catch-up ever since. Others are manufacturing hubs that have not recovered from globalisation.
- Truro
- Newry
- Peterborough
- Bangor, Wales
- Hull
- Derry
- Stirling
- Carlisle
- Lincoln
- Dundee
Why is this research important?
Digital technology is a significant driver of UK growth, attracting more than £20 billion in private AI investment since 2016. Yet recent news highlights the tech industry is still facing a skills shortage, with 80% of UK organisations struggling to recruit applicants with suitable skills. Without adequate tech talent, businesses face the challenge of how to remain competitive in an increasingly tech-driven world.
One way businesses are addressing this is by adopting a broader workforce ecosystem. Traditionally, employers have focused on in-house talent, hiring and training them for new skills. A Deloitte survey found that 87% of executives consider their workforce to include certain specialist workers that are freelance, gig, and long-term but not permanent employees.
If businesses cluster in regions and cities, it’s likely to foil the government's plans to spread AI capability across the country and prevent concentration in specific areas - risking deeper regional inequalities. Innovation and technology are a part of all of our futures, so education, career prospects and funding should be a focus for all areas of the UK.
But there’s a challenge in addressing this disparity between larger and smaller cities. SAS research shows that the most populated cities (Manchester, Birmingham, Leeds) are thriving, while smaller, and less urban cities may be at risk of being left behind if there is not enough education, careers requiring digital literacy, and investment.
Alongside traditional AI, generative AI has gained prominence in the last 12 months, with over 18 million people in the UK now using large language models like ChatGPT. Leading companies like PwC are setting an example. The firm recently integrated ChatGPT Enterprises across UK workforces to incorporate AI in audits, tax, and industry support solutions. This is why SAS also looked at the demand for generative AI solutions in each city, and how much it’s risen in the last year.
With so many changes taking place across the workforce, and with net migration continuing to be high, it’s crucial that we urgently equip our future workforce with the skills needed to thrive in the AI era. To maintain the UK’s leadership in this field, all cities need to be prepared to play their part - not just those in large urban areas.
Back in 1903 HG Wells’ stated in his book ‘Mankind in the making’ that for scientific, financial and socio-political solutions, data literacy would be as essential as the ability to read and write. He was right, and we are late. We need to work to address digital and data literacy gaps, help businesses apply for investment, upskill the current talent pool, and encourage young people to study AI-related courses. This will be key to seizing the AI opportunity that will help drive the future economy.
ENDS
Methodology
SAS looked at seven key indicators, including:
- The number of AI-related companies in each city, according to LinkedIn.
- The number of courses featuring an element of artificial intelligence at each university in the UK.
- The number of open jobs within a 5-mile radius.
- The number of AI events, according to meetup.co.uk.
- The number of hackathons, according to hackathon.com.
- The increase in Google searches for relevant AI solutions in the last year, according to Google Keyword Planner.
- The average InnovateUK grant, per business, by location
