Indiana tech industry draws attention without AI
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The Indianapolis area has fewer AI-related job postings than the average metro, but that hasn't kept the local innovation sector from heating up.
Why it matters: As AI demand increases, cities outside Silicon Valley have a chance to get in on the action — and reap the potentially lucrative economic rewards.
State of play: New AI job postings continue to grow despite layoffs in the tech industry and worry from workers that AI could threaten their jobs.
- Consumer skepticism of AI also remains strong. In the U.S., trust in AI companies has dropped to 35% from 50% five years ago.
Driving the news: Indiana ranked 23rd in the nation for the number of AI jobs posted in the first quarter, according to UMD-LinkUp, a collaboration between the University of Maryland, job listings platform LinkUp and consultancy/executive firm Outrigger Group.
- There were 8.4 AI job postings per 100,000 residents in the Indianapolis metro area. The national average is 11.7.
The big picture: Indianapolis being behind presents a growth opportunity to a Hoosier tech industry that is outpacing its peers in investment activity.
- Indiana saw overall venture capital investment climb to $491.9 million in the first quarter this year, up from $126.5 million in the same period last year, per a TechPoint study.
- Tech sector companies led the way with 29 deals valued at a total of $349 million, making it the highest-performing quarter since TechPoint began tracking the data in 2015.
Zoom in: The tech sectors seeing the most activity are life sciences, ag bioscience, manufacturing/hardtech and edtech/workforce tech.
Zoom out: As Indiana improved, national VC investment and deals declined by 26% and 28%, respectively.
- Economic uncertainty and questions about how AI will influence existing sectors contributed to the downturn.
What they're saying: "This is a time right now where all eyes are on the quality of your product and what you're putting out. So whether you're a VC or whether you're a startup, you really have to bring your A-game right now," Muhammad Yasin, vice president of marketing for Indianapolis-based Elevate Ventures, told Axios.
- "It's certainly more pressure. But it feels like the right kind of pressure."
Threat level: Indianapolis is among the top 15 metros where AI could upend jobs, according to a 2023 analysis by the Chamber of Commerce, a product research company.
- 13.3% of the Indianapolis area's workforce is at risk, or more than 140,000 jobs.
- Researchers estimate the sector that will see the most losses locally is office and administrative support with nearly 26,000 roles, followed by sales with nearly 9,300 positions.
The bottom line: AI is here to stay, but we'll have to wait and see what impact it will have on Indianapolis.