How AI could bolster Charlotte — and exacerbate its disparities
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Charlotte is well-positioned to thrive in an AI future, a new study finds. But experts warn that same technology could cause workforce shifts that deepen the city's disparities.
Why it matters: The more prepared Charlotte is to lead in an AI-driven economy, the less likely it is to be a victim of it.
- "The nation's general readiness to benefit from AI is critical," the Brookings Institution report states, "because the technology is going to play a significant role in economic development given its potential to drive efficiency, innovation, and productivity in every industry."
Zoom in: Brookings ranked the Charlotte-Concord-Gastonia metro among 28 "Star Hubs" — the second-strongest tier for AI ecosystem behind "Superstars," a grade only bestowed on the dominant tech hubs of San Francisco and San Jose.
- Brookings researchers say Charlotte scored well and balanced across three pillars: talent, innovation and business adoption. With nearly 7,000 job postings requiring AI skills, Charlotte stood out as a place where AI is being integrated into existing businesses.
- The metro also performed strongly in measures such as the number of engineering graduates, online profiles with AI skills, AI research papers and patents granted, and the number of AI startups.
Yes, but: AI is feared to bring widespread job displacement. Based on conversations with AI executives, Axios' Jim VandeHei and Mike Allen report that once technologies are advanced enough, AI could wipe out tens of millions of jobs in a very short time.
What they're saying: State Sen. Caleb Theodros — who has built machine-learning systems he says replaced human teams — says the technology will create more jobs than it destroys in the long run (more than 60% of today's roles didn't exist in 1940). But the transition, he warns, will be rocky.
- He says Charlotte will be hit harder due to its vulnerability as a banking center (AI could replace functions like underwriting, fraud detection and claims processing), plus its share of young workers, who could move elsewhere if jobs vanish here.
- Theodros says he recently spoke to an attorney whose firm stopped hiring graduates since mandating the use of AI.
"Factory automation of blue-collar jobs was to Detroit what AI automation of white-collar jobs is to Charlotte," Theodros wrote in a recent op-ed.
- But, he added, "Detroit didn't collapse just because cars became more efficient — it collapsed because it failed to diversify and adapt."
Between the lines: Brookings' researcher Mark Muro says markets need to assess their strengths and weaknesses related to AI, then develop strategies based on their shortcomings.
- "Urgency is important here," Muro says. "This is moving quite rapidly."
- Charlotte Works and the Charlotte Regional Business Alliance studied the impacts of AI on the region's workforce. They determined that, while AI will create jobs, it has the potential to exacerbate disparities in a city that's already known for poor upward mobility.
- The local report warns that between 56% and 81% of occupations most affected by AI are held by women, citing research from NBER and Goldman Sachs. Those susceptible roles include telemarketers, proofreaders and copy markers.
What's next: Kevin Loux, Charlotte Works' chief impact officer, advises that the city work to raise AI awareness and education at every level, from elementary school to working adults.
- "If you're a plumber, even ... having these AI skills may be very helpful for you in terms of scheduling, marketing, promoting your business," Loux says. "This is something that will change the way that we work entirely."
- Charlotte-Mecklenburg Schools wants to lead the nation's public schools by embracing AI, but is still navigating ways to incorporate the technology into its curriculum without losing students' critical thinking skills.
Case in point: Theodros says Charlotte should diversify its economy by attracting startups, small businesses and a range of industries, such as advanced manufacturing, green energy, healthcare and tech. He speaks optimistically about The Pearl, the new innovation district expected to boost the region's medical education and research.
- Theodros is also advocating for a bipartisan task force with private sector leaders to explore policies that incentivize workforce development and draw AI talent.
The bottom line: "The reality is that this technology is going to create winners and losers," Loux says, "and it has that potential for another seismic shift in the course of workforce ... just like the internet and cell phones have had for us in the past."