Manchester tops UK AI city ranking for third consecutive year

Manchester has ranked as the UK’s most AI-ready city outside London for the third consecutive year, according to the SAS AI Cities 2026 Index.

The index, produced by data and AI company SAS, assesses cities using indicators including AI-related jobs, business activity, innovation funding, education opportunities and digital infrastructure.

Manchester received the highest overall score in the 2026 index, supported by strong AI employment, education and business activity. SAS said the city recorded the highest number of AI businesses in the ranking, with 655 organisations operating in the sector.

The city also performed strongly in Innovate UK funding for AI and data economy projects, while skills and training initiatives have supported Greater Manchester’s wider AI ecosystem.

Recent regional initiatives include the expansion of technology learning hubs for secondary school students and the Future of Work Alliance, a five-year programme focused on AI research, training, internships and scholarships.

Bristol, Glasgow, Oxford, Birmingham, Southampton, Edinburgh, Leeds, Liverpool and Cambridge completed the top ten cities in the 2026 ranking.

Why does it matter?

The ranking points to the growing importance of regional AI ecosystems beyond London. Cities competing for AI investment increasingly need a mix of skills, education, research links, digital infrastructure, business activity and public-sector support. Manchester’s position suggests that local AI strategies are becoming part of wider economic development and workforce planning, although the ranking should be read as a private-sector index rather than an official measure of national AI capacity.

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AI drives Vietnam’s smart city expansion

AI is becoming central to Vietnam’s urban development as major cities adopt data-led systems. Leaders at the Vietnam–Asia Smart City Summit said AI now shapes planning, service delivery and daily operations nationwide.

Experts noted rising pressure on cities, with congestion, pollution and population growth driving demand for more innovative governance. AI is helping authorities shift towards proactive management, using forecasting tools, shared data platforms and real-time supervision.

Speakers highlighted deployments across transport control, environmental monitoring, disaster alerts and administrative oversight. Hanoi and Da Nang presented advanced models, with Da Nang recognised again for achievements in green development and digital operations.

Delegates agreed that long-term progress depends on strong data foundations, closer coordination and clear strategic roadmaps in Vietnam. Many stressed that technology must prioritise public benefit, with citizens placed at the centre of smart-city design.

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Cities take on tech giants in a new diplomatic arena

In a world once defined by borders and treaties, a new kind of diplomacy is emerging, one where cities, not nations, take the lead. Instead of traditional embassies, this new diplomacy unfolds in startup hubs and conference halls, where ‘tech ambassadors’ represent cities in negotiations with powerful technology companies.

These modern envoys focus not on trade tariffs but on data sharing, digital infrastructure, and the balance between innovation and public interest. The growing influence of global tech firms has shifted the map of power.

Apple’s 2024 revenue alone exceeded the GDP of several mid-sized nations, and algorithms designed in Silicon Valley now shape urban life worldwide. Recognising this shift, cities such as Amsterdam, Barcelona, and London have appointed tech ambassadors to engage directly with the digital giants.

Their role combines diplomacy, investment strategy, and public policy, ensuring that cities have a voice in how technologies, from ride-sharing platforms to AI systems, affect their citizens. But the rise of this new urban diplomacy comes with risks.

Tech firms wield enormous influence, spending tens of millions on lobbying while many municipalities struggle with limited resources. Cities eager for investment may compromise on key issues like data governance or workers’ rights.

There’s also a danger of ‘technological solutionism’, the belief that every problem can be solved by an app, overshadowing more democratic or social solutions.

Ultimately, the mission of the tech ambassador is to safeguard the public interest in a digital age where power often lies in code rather than constitutions. As cities negotiate with the world’s most powerful corporations, they must balance innovation with accountability, ensuring that the digital future serves citizens, not just shareholders.

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