diff --git a/src/machinelearningservices/azext_mlv2/manual/requirements.txt b/src/machinelearningservices/azext_mlv2/manual/requirements.txt
index 83eef209ca5..def05c6cff7 100644
--- a/src/machinelearningservices/azext_mlv2/manual/requirements.txt
+++ b/src/machinelearningservices/azext_mlv2/manual/requirements.txt
@@ -2,4 +2,4 @@ cryptography
 docker
 azure-mgmt-resourcegraph<9.0.0,>=2.0.0
 azure-identity==1.17.1
-azure-ai-ml==1.29.0
\ No newline at end of file
+azure-ai-ml==1.30.0
\ No newline at end of file
diff --git a/src/machinelearningservices/setup.py b/src/machinelearningservices/setup.py
index 46e07d728a3..bf191ceaae6 100644
--- a/src/machinelearningservices/setup.py
+++ b/src/machinelearningservices/setup.py
@@ -10,7 +10,7 @@
 from setuptools import setup, find_packages
 
 # HISTORY.rst entry.
-VERSION = '2.39.0'
+VERSION = '2.40.0'
 
 # The full list of classifiers is available at
 # https://pypi.python.org/pypi?%3Aaction=list_classifiers