Cambridge top UK location for AI companies
Its star outshines all others in the galaxy according to pioneering new research from BusinessFinanced.co.uk – ‘AI Business Rankings 2024’.
The analysis identifies 59 leading UK locations for AI enterprises. The rankings are based on a detailed evaluation of AI-related job vacancies, the number of AI-related businesses, online search volume for AI-related terms, and the 5-year business survival rate.
Cambridge demonstrates a strong balance across various metrics, including a substantial number of AI-related businesses (140) and a significant online search volume per person (0.1674).
Importantly, Cambridge also shows an encouraging AI business survival rate of 46.2 per cent, indicating a supportive environment for long-term success.
Bristol, where Cambridge company Arm has offices, comes in second and Reading third in the rankings.
Besides Cambridge, other East of England locations don’t fare badly with Milton Keynes (12th) and Chelmsford (13th), also making the top 20. Oxford is rated 9th.
There are ebbs and flows elsewhere in terms of AI strengths and weaknesses. The report authors say that some places, such as Gloucester and Ipswich, demonstrate lower AI job vacancy rates but boast high business survival rates (47.8 per cent and 43.4 per cent, respectively).
This suggests that while job openings may be fewer, the existing businesses are thriving, pointing to stable and supportive business environments, they say.
And locations such as Lincoln and Chelmsford, although not traditionally recognised as technology hubs, are emerging as promising locations for AI businesses, the report adds.
It cites Lincoln’s strong online search volume (0.3638) and Chelmsford’s solid business survival rate (44.8 per cent) as indications of growing interest and support for AI development.
Evaluating key factors that contribute to a thriving AI ecosystem, the report should prove invaluable for a variety of stakeholders, including entrepreneurs and startup founders looking to establish AI businesses, investors and venture capitalists seeking lucrative opportunities, policymakers and government officials aiming to foster AI development and educational institutions preparing the future AI workforce.
The report reveals interesting patterns and unexpected points. For instance, London, while having the highest number of AI-related businesses, faces intense competition and lower job vacancy rates per person. Smaller places like Exeter and Tunbridge Wells, despite their size, provide highly supportive environments for AI businesses.