How Indiana is laying the groundwork for its AI evolution
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AI is reshaping the world right before our eyes. Illustration: Brendan Lynch/Axios
Indiana isn't exactly an AI hot spot, but a new report says the Hoosier state has the infrastructure and capability to help push the technology forward.
Why it matters: Those building AI say it is advancing more rapidly than most people realize, Axios' Erica Pandey reports.
- It's likely we won't know how much AI will change the way we live, work and play until it already has.
Driving the news: National nonprofit Code for America recently named Indiana one of 17 states still in the development stage when it comes to overall AI readiness, leadership and governance, and AI capacity building.
Yes, but: Code for America considers our state "established" in terms of technical infrastructure and capabilities, noting that Indiana has "centralized large datasets" and "secure environments for data science."
Between the lines: AI startups are gobbling up venture capital cash, taking 64% of all U.S. capital dollars invested in the first half of 2025, according to new data from PitchBook.
Reality check: Indiana has seen a decline in VC due to market uncertainties across the U.S.
- In an update shared last week, TechPoint recorded 58 tech-focused venture deals totaling $161.7 million in disclosed capital through June 2025, down from nearly 80 deals worth $300 million through June 2024.
- The TechPoint team says the downturn is in line with a broader national deceleration and not the result of any state-specific weakness.
Zoom in: Backstroke, the generative AI marketing startup launched last summer by Indy tech executive R.J. Talyor and data scientist Allyson Talyor, has managed to maintain its momentum.
- Last week, the company announced $2.8 million in new growth funding led by Allos Ventures with continued participation from High Alpha and Ground Game Ventures.
- Customers count and annual recurring revenue is also up year-over-year.
- "Within 12 months, AI-driven email marketing will be standard practice," Talyor said in a statement. "This funding helps ensure our customers have the tools and support they need to stay ahead."
The latest: Indiana University on Tuesday announced a new generative artificial intelligence course being offered this summer at no cost to all IU students, faculty and staff.
How it works: Offered through the Kelley Direct online MBA program, GenAI 101 teaches practical skills like prompt engineering, AI-assisted productivity and fact checking generated content.
- The course uses IU's Gemini AI platform, complete with a conversational AI tutor.
What they're saying: "This is about giving Hoosiers a competitive edge," said Brian Williams, faculty chair of the Kelley School of Business' Virtual Advanced Business Technologies Department and lead instructor for the course. "We're focused on practical tools that can help students and employees thrive in any field."