Grealish left his boyhood club Aston Villa for Man City in a £100 million move last year.
But Souness believes Grealish is not a quick learner at Pep Guardiola’s side.
Speaking alongside fellow pundits in a debate for Sky Bet, Souness blasted: “He’s not a quick learner.
“All the top players are quick learners. Jack’s had a year and for me, he’s not improved.”
Grealish’s former Villa team-mate Micah Richards defended the midfielder, claiming it is his price tag that has earned him criticism rather than his performances.
But Souness hit back: “I have not mentioned his transfer fee.
“City have got some world-class players. I’m looking at what he gives in the 90 minutes.
“I don’t see any improvement at all in him. Top players are quick learners, Micah.”
Grealish scored six goals and registered four assists in all competitions for Man City last season.