States all in on AI despite bubble fears
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Maura Losch/Axios
OKLAHOMA CITY — Governors and local leaders in the Midwest and South say they're hopeful that AI will supercharge stagnant economies and create new jobs despite questions over whether the AI revolution is all it's cracked up to be.
Why it matters: Tech investments are pouring into communities, and states are embracing AI for economic growth, even as skepticism grows over how long the boom can last.
Driving the news: Policymakers, industry leaders and local organizations gathered at the "Big Bets for America" event in Oklahoma this week to promote the benefits of AI for economies outside of the East and West coasts.
- "For the American dream to thrive, Americans need access to good jobs, a relevant and impactful education system and energy that can power our future," Oklahoma Gov. and National Governors Association chair Kevin Stitt said in a speech on Tuesday.
- Policymakers' role in providing jobs means "fostering business-friendly environments" and "fewer regulations," he added.
- Heartland Forward, the nonprofit that co-hosted the event with the Rockefeller Foundation, launched an AI caucus to try to make sure legislation is designed to accelerate economic growth. It's also launching a research and program development hub to "enhance investor confidence" in the region.
The big picture: There are tons of studies on whether AI will help or hurt workers, and proponents of the tech are quick to say that any short-term pain will lead to long-term gains.
- But leading economists say that many questions remain about the impact of AI on jobs, and lawmakers on Capitol Hill are trying to find ways to get that data.
- Meanwhile, layoffs are continuing and global stock markets are wobbling as banks warn AI companies could be overvalued.
The mood at Tuesday's event was optimistic and attendees were adamant about dispelling fears that AI was going to hurt workers.
- "It's just a different technology and we are always as a society having to learn new things, readjust, and deal with what seems like workforce realignment that may result in fewer jobs that just ends up in different jobs," said Oklahoma City Mayor David Holt.
- In Oklahoma City, the largest tech company Paycom laid off 500 people it's expecting to replace with AI.
By the numbers: Tech companies are focused primarily on AI infrastructure and workforce training across states, with Google investing $9 billion in Oklahoma, Amazon investing $10 billion in North Carolina, and Microsoft investing $3.3 billion in Wisconsin, for instance.
Zoom in: Louisiana Chief Innovation Officer Josh Fleig said he's prioritizing building out the state's startup ecosystem given his concerns about how AI is propping up the broader economy.
- "I'm never going to say no to a Meta," Fleig said.
- But he recalled having to sit in "a lot of bad meetings in Silicon Valley where I was told that we could never develop software in that sh---y, swampy state."
- That experience convinced him that the way to improve Louisiana's economy is "to just get smarter about building stuff at home," he said.
The bottom line: Whether it's home-grown or through Silicon Valley investments, states are betting on AI.
