Key Takeaways
- Manchester is rapidly growing as a major Artificial Intelligence (AI) hub, second only to London in the UK.
- The city’s AI companies are currently valued at $4.2 billion (£3.1bn), employing over 13,000 people.
- Experts predict Manchester’s AI sector could be worth $15 billion (£11.2bn) by 2035, creating 25,000 jobs.
- Strong university research, numerous startups, and significant venture capital investment fuel this growth.
- AI developed in Manchester is already being used in healthcare, maritime safety, education, and more.
Manchester is making waves in the world of Artificial Intelligence (AI), positioning itself to become a global leader in the field.
The city already boasts the UK’s largest AI cluster outside of London. According to a new report highlighted by the Manchester Evening News, Greater Manchester’s AI firms have seen their value soar to $4.2 billion (£3.1bn), a fivefold increase in just five years. Over 13,000 individuals in the region are now employed in AI-related roles.
The Greater Manchester AI Catalyst Report suggests even greater potential ahead. With continued support and investment, the region’s AI ecosystem could reach a staggering $15 billion (£11.2bn) valuation by 2035. This growth could translate into 25,000 local AI jobs and contribute $25 billion (£18.6bn) to the economy.
While popular tools like ChatGPT come to mind when thinking of AI, the applications stretch much further. Liz Scott, head of the Turing Innovation Catalyst Manchester (TIC), explained that the city possesses fantastic “raw materials” for becoming an AI powerhouse.
“We’ve got the largest AI cluster outside of London,” Scott noted, highlighting the surprisingly large workforce of over 13,500 people in AI within Greater Manchester.
The city benefits from a unique mix: successful homegrown AI companies like Peak and Matillion, multiple universities including the University of Manchester (home to over 900 AI researchers), and a business community eager to adopt AI innovations.
The TIC, based at the University of Manchester, actively works to nurture this ecosystem. Their report revealed that local AI companies attracted over $583 million (£435m) in venture capital between 2021 and 2023. Investment continues strongly, with $389 million secured in 2024 alone, showing Manchester competes effectively with major European tech hubs.
TIC helps bridge the gap between academic research and business, supporting entrepreneurs and focusing on AI’s real-world impact. Scott emphasized their focus on the “So What” – how AI innovations can solve tangible problems.
Examples include AI predicting sea wave patterns to enhance safety for offshore industries like wind farm construction. Another TIC-supported company uses AI to help older adults manage complex medication schedules safely.
AI is also making a difference in education. Teachmate, a company supported by TIC, creates AI tools for teachers, saving them significant administrative time. Scott mentioned they currently support over 300,000 teachers globally, freeing up hundreds of thousands of days previously spent on paperwork.
“AI is kind of meaningless in isolation – it needs to be solving problems that we care about,” Scott added.
Manchester’s drive in AI builds on a rich computing history. The world’s first stored-program computer, ‘Baby’, was created there, and codebreaker Alan Turing did significant work in the city. This heritage provides a strong foundation for Manchester’s ambition to lead the next wave of technological advancement.
