The path to an AI-powered future in the UK

AI is transforming everything, including how leaders in local government and city management analyse data, plan infrastructure, and manage public safety. According to the ServiceNow AI-Powered Cities of the Future report, 18% of cities globally are widely using AI—a number set to nearly triple in the next three years to 48%.

Let’s explore how the UK is progressing towards an AI-powered future, considering current successes in cities and the national outlook for investment.

The state of AI cities in the UK

Our AI-Powered Cities of the Future report surveyed 250 global cities to benchmark approaches to AI. Cities were given an overall AI maturity score calculated using data on AI usage, controls for responsible AI, and foundations for future success.

Cities were classified as AI adopters, advancers, or leaders based on their score. Globally, one in five cities are AI leaders, according to our research. This figure rises to one in four (26%) in Europe, the Middle East, and Africa (EMEA).

Edinburgh, Scotland, is the only AI leader in the UK. Other cities such as Brighton and Hove, England, Manchester, England, and Cardiff, Wales, are advancers. Liverpool, England, and Sunderland, England, are adopters.

Edinburgh is an AI leader

As AI becomes more accessible, smaller cities are introducing AI initiatives. Edinburgh is a prime example.

Of all the EMEA cities assessed, Edinburgh ranks second in the domain of living, health, and trust. Leading cities in this domain use AI services to improve the lives and health of residents and increase their trust in government.

For example, researchers from the University of Edinburgh collaborated with Public Health Scotland to improve how a hospital tool identifies patients at risk of readmission, aiming to make emergency healthcare planning more efficient.

Edinburgh also uses AI to transform renewable energy generation and support net-zero targets. At Robin Rigg, Scotland’s first offshore wind farm, AI is helping improve turbine performance and deliver predictive maintenance using machine learning.

The UK’s commission for AI progress

Edinburgh’s success demonstrates how AI can improve services and infrastructure in the UK. The government is making national investments to create a foundation for new tools, skills, and frameworks that will empower more cities to innovate with AI.

For example, the government commissioned the UK AI Opportunities Action Plan to inform how AI can be used to grow the economy and improve public services. Its recommendations include the establishment of “AI Growth Zones” to support the development of AI data centres while delivering benefits to local areas, including enhanced energy infrastructure.

In the Spring Statement 2025, the government announced a £3.25 billion fund for public sector reforms, centring on technology and AI. A £42 million investment will be routed towards three Frontier AI Exemplars. They’ll test and deploy AI applications for government operations, aiming to improve efficiency and citizen outcomes.

The Spring Statement also highlighted plans to introduce AI in compliance functions at His Majesty’s Revenue and Customs (HMRC). AI and advanced analytics will be implemented to detect instances of offshore tax non-compliance, aiming to minimise hidden wealth and support economic growth.

Investments at a national scale will catalyse the transition to AI leadership in more UK cities. The Local Government Association reports that 91% of councils are already exploring AI for diverse applications, and investment can help scale these efforts by addressing challenges such as legacy IT systems and poor data quality.

In the UK, the journey from a single AI leader city to an AI-powered nation is being led by strategic, well-funded government action.

Find out how leaders in EMEA are putting AI to work in our full AI-Powered Cities of the Future report.