Greater Manchester’s AI companies are now valued at $4.2bn, more than five times their 2020 valuation.
The city region is on a path of considerable growth, according to a brand-new report from the Turing Innovation Catalyst Manchester (TIC).
The Greater Manchester AI Catalyst Report, released this week, finds that the city region now ranks 13th in Europe for AI talent, home to companies employing 13,500 AI professionals.
The report also highlights that, with the right support and investment, the city region’s AI ecosystem has the potential to be worth $15bn by 2035, increasing the number of AI jobs to 25,000 and achieving an economic impact contribution of $25bn gross value added (GVA).
TIC is a non-profit incubated within the University of Manchester and part of Unit M, the university’s innovation arm.
It is also part of the Greater Manchester Innovation Accelerator, one of three pilot projects in the UK, and works to accelerate the pace of AI innovation through programmes of support for innovators, founders, skill-seekers and researchers.
Key findings highlight that Greater Manchester’s AI companies raised over $583m in venture capital investment between 2021 and 2023, representing 28 per cent of the $2.03bn raised by all tech startups and scaleups in the city region over the three-year period.
In 2024 alone, companies secured $389m in venture capital, positioning the city competitively alongside other leading European cities, such as Madrid and Barcelona.
Following the recent government announcement of the AI Opportunities Action Plan, AI adoption has become a central focus for the country’s development.
The plan aims to accelerate AI integration across the UK, driving economic growth, creating future job opportunities and enhancing businesses, which Greater Manchester will play a key role in activating.
“Manchester has long been recognised as the UK’s second city, in terms of the resilience, maturity and potential of its digital economy in a broad sense – but the growing strength of its AI cluster is what really sets it apart,” said Liz Scott MBE, executive director at the Turing Innovation Catalyst Manchester.
“The work we’re doing at the Turing Innovation Catalyst, in partnership with organisations across the public and private sectors, is about making purposeful investments that create the right conditions for innovation to thrive in all corners of society – from our universities to SMEs and large corporates, and with individuals who want to work with this expansive technology.
“Collaboration is critical to unlocking that, and this new report really highlights that as a priority for the city region. We have a lot to be proud of – from the levels of investment our AI companies are attracting to our global standing in comparison to other cities – but now we need to work together to realise our growth potential and lead the future of AI innovation.
“Greater Manchester is on a clear path of growth and our ambition is for the city region to be a leading destination for AI innovation globally. I hope that with the release of this report and a clear agenda for the future, the Turing Innovation Catalyst and partners can drive forward that growth – fostering an ecosystem that is inclusive, resilient and globally impactful.”