- First comprehensive baseline study of its kind identifies 663 AI-active firms across Greater Manchester, with more than half founded in the city region
- Health and life sciences is identified as Greater Manchester’s clearest AI specialism, supported by one of the UK’s most concentrated clusters of AI health research
- Greater Manchester has the largest AI workforce of any UK region outside London, with an estimated 10,890 people working in AI-related roles across all sectors
- The study suggests Greater Manchester’s AI ecosystem could grow to around 1,420 firms and support more than 28,000 AI-related jobs by 2035
Greater Manchester is a leading UK centre for the applied and responsible use of AI across key growth sectors, a new report shows.
The smart adoption of AI is already making a real difference in health and life sciences, with the future potential to lead to better diagnosis and treatment for patients, in agenda-setting research by the region’s world-class universities, and in powering local economic growth among a community of Greater Manchester businesses developing AI products for customers around the world.
Commissioned by the Greater Manchester Combined Authority (GMCA) and produced by Perspective Economics, the Greater Manchester AI Ecosystem Study provides the first comprehensive baseline of AI activity across the city region.
The study maps Greater Manchester’s AI businesses, workforce, economic contribution, investment, research assets and growth potential.
The findings will inform future decisions on targeted investment and support, enable decision makers to track progress over time, and help to identify the strengths, opportunities and challenges that will shape inclusive and responsible AI growth.
The research shows that the city region’s strengths lie in applied AI, using the potentially transformative technology to address challenges within different industries and in improving public services.
This strength is underpinned by expertise in higher education and industry to turn research into practical products and solutions.
It identifies 663 businesses actively developing or deploying AI across Greater Manchester.
More than half (54%) were founded in the city region, rising to 68% among businesses whose primary product or service is AI.
The wider AI workforce is estimated at almost 11,000 people, the largest of any UK region outside London.
The study also highlights significant future potential. Under a medium-growth scenario, Greater Manchester’s AI ecosystem could expand to around 1,420 businesses by 2035, contributing £1.6bn in annual gross value added (GVA) and supporting a wider AI workforce of more than 28,000 people.
Mayor of Greater Manchester Bev Craig said: “As artificial intelligence becomes one of the defining technologies of our time, Greater Manchester is well placed to harness its benefits for our people, businesses and communities.
“Our ambition is clear: to be a world-leading AI city region. Not simply a place where AI is developed, but a place where it is applied responsibly and in ways that create lasting public value.
“This report provides the most comprehensive picture yet of our AI ecosystem, helping us understand where our strengths lie, where the opportunities are, and how we can build on them in the years ahead.
“AI can help us deliver more effective public services, improve health outcomes and accelerate innovation, but growth alone is not enough. We must ensure that innovation creates and protects good jobs, and is developed in a way that is ethical and trusted.”
Health and life sciences specialism
More businesses whose main product relies on AI are working in health and life sciences than in any other area examined by the study.
The city region has a concentration of businesses applying AI in areas including diagnostics, clinical imaging, drug discovery, mental health, patient engagement, and healthcare training.
Businesses already putting this expertise into practice include AINOSTICS, which uses AI and clinical imaging to support earlier diagnosis of dementia neurological conditions; Manchester Imaging, which develops tools to help identify dental disease and osteoporosis risk; and CareLoop Health, which uses predictive technology to monitor potential relapse in severe mental illness.
The study shows that Greater Manchester’s distinctive opportunity lies in combining this expertise with its integrated health system and the infrastructure needed to turn research into practical applications, potentially delivering nationally and internationally significant advances in diagnosis, treatment and patient care.
Greater Manchester’s research base
The city region’s four universities provide expertise across AI, data science, health, advanced materials and applied computing.
The University of Manchester’s AI@Manchester network alone brings together more than 800 AI and data-science researchers.
Since 2021, Greater Manchester research organisations have participated in 354 AI-related projects.
The annual value of research awards involving a Greater Manchester partner rose from £51 million in 2021 to £148 million in 2024.
The study also found that 180 (27%) of the 663 AI businesses identified have participated in or supported a UKRI-funded research project.
The report highlights the organisations helping businesses transform research into commercial innovation, including university commercialisation programmes, specialist accelerators, Health Innovation Manchester and the Centre for Digital Innovation.
Home-grown businesses
The study identifies a strongly home-grown business community. Of the 663 businesses mapped, 356 were founded in Greater Manchester, including many small and medium-sized companies developing specialist AI products and services.
Many have built customer bases well beyond the city region. Greater Manchester-founded businesses identified in the report provide products and services to organisations including LEGO, Meta, Roche, Nike, H&M, Adidas, PepsiCo, Microsoft and the NHS.
The research estimates that 138 of the 356 locally founded businesses have at least one documented international customer or partner.
It also highlights examples of companies growing from Greater Manchester while building operations and customer relationships in wider markets.
Broader economy and public services
Health and life sciences may be Greater Manchester’s clearest AI specialism, but the study identifies a broad range of AI activity across the wider economy.
Businesses across the city region are applying AI in sectors including manufacturing, energy, retail, transport, cybersecurity, housing, customer services and legal compliance.
The report identifies particular strengths in AI software and applications, marketing and e-commerce, and industrial and built-environment technologies.
The study also highlights growing adoption across public services.
Examples include Manchester City Council using AI to support contact-centre staff and help prioritise highway repairs; Manchester University NHS Foundation Trust using technology to reduce clinical documentation time; and Greater Manchester Police working with Manchester-founded Robiquity to automate operational processes.
The report says Greater Manchester could build a distinctive position as a trusted place for responsible AI adoption, particularly in public services.
This means combining innovation with security, transparency, human oversight and clear accountability, while making sure adoption delivers measurable improvements rather than remaining at the pilot stage.
Cllr Akhtar Zaman, Leader of Bolton Council and Greater Manchester Lead for Digital City Region said: “One of the most encouraging findings in this study is the number of businesses that have started, grown and innovated here in Greater Manchester.
“Combined with our research strengths and talent pipeline, that gives us a strong foundation to support the next generation of AI businesses, helping more companies develop, scale and succeed from within the city region.
“Our focus now is on creating the conditions that allow innovation to thrive and ensuring the benefits are felt across Greater Manchester and beyond.”
Liz Scott MBE, Director of Turing Innovation Catalyst Manchester, said: “Greater Manchester isn’t just talking about the potential of AI – we’re already putting it to work. This report shows what’s possible when world-class research and entrepreneurial ambition are matched by a shared commitment to partnership and innovation.
“That collaborative approach has been at the heart of everything we’ve built at the Turing Innovation Catalyst – from supporting the creation and growth of AI businesses to forging new connections between academia, industry, investors and the public sector. We’ve already seen what can be achieved when an entire ecosystem pulls in the same direction.
“The opportunity now is to take that momentum even further, making Greater Manchester a place known not simply for developing AI, but for using it to solve the problems that really matter – improving lives, transforming industries and creating opportunities for people and businesses.”
The study has been commissioned through AI.GM, Greater Manchester’s framework for turning the opportunities of artificial intelligence into practical benefits for people, businesses and public services.
AI.GM brings together partners from across business, public services, universities, investors and government to ensure AI is applied in ways that deliver real-world benefits.
It supports Greater Manchester’s ambition to become the UK’s AI demonstrator city region, testing and applying new approaches in practice while building the skills, evidence, investment and trust needed to support long-term growth.
