Braun bets on AI to boost Hoosier businesses amid growing backlash
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Gov. Mike Braun's push to have AI directly touch the lives of 1 million Hoosiers is hitting the Circle City next week.
Why it matters: The state that has lagged on AI adoption is betting big on the tech's ability to boost wages at a time when negative sentiment around it is on the rise.
Driving the news: Braun stated his desire to make Indiana the most "AI-ready" state in the nation this spring with the launch of IN AI, a partnership with CEOs of the Indiana Corporate Partnership (CICP) to accelerate the use of the technology locally.
- The goal is to increase wages, create more high-quality jobs and position Indiana for long-term economic growth.
- Google formally joined the effort in May by aligning with the corporate partnership to host workshops to help entrepreneurs implement AI.
- Google plans to reach about 10,000 Hoosier businesses.
The latest: Indy will get a taste of IN AI on June 26 when it becomes one of 10 cities nationwide to host Anthropic's free "Claude for Small Business" workshop series.
- Each metro on Anthropic's tour will host about 100 small business leaders for half-day AI classes.
What they're saying: "AI adoption is no longer only an enterprise conversation," Melina Kennedy, CEO of the partnership, said in a statement. "Indiana has an opportunity to lead by helping businesses translate AI awareness into real operational adoption."
Yes, but: Funding for IN AI remains an open question. Braun was repeatedly asked for details at launch but did not provide a clear answer.
- Instead, he told reporters that funding will depend on state cash flow and the economy.
Plus: AI backlash is growing, as people worry it will take their jobs, jack up electricity rates and further enrich the wealthy, all while hurting the environment.
- An Economist/YouGov poll released in May showed over 70% of Americans think AI is advancing too quickly, with 68% of Republicans and 77% of Democrats saying it's moving too fast.
- AI mentions have also drawn boos at several college graduations.
State of play: Working-age Americans in cities like Indianapolis are nearly twice as likely to use AI as workers in more rural communities, according to a Microsoft report shared first with Axios.
- Microsoft president Brad Smith warns that the uneven spread of AI adoption could deepen economic opportunity gaps.
- Part of that boils down to trust. More than half of urban respondents say AI is likely to act in the public interest, compared with less than 40% in rural areas.
Zoom in: Indiana ranks 35th among states with an AI usage rate of nearly 27%, lower than the national average of 31.3%.
- AI use in the state's Metropolitan areas is 28.7%, and use in rural areas is 15.5%.
- Tippecanoe and Monroe counties, home to Purdue University and Indiana University, have the state's highest usage rates at about 47% and 46%, respectively.
- Hamilton County has the highest usage in Central Indiana at nearly 35%, and Marion County has a usage rate of 28%.
The bottom line: Closing the AI adoption gap in places like Indiana could determine whether the technology narrows or widens economic divides across the country.
- "If it's not addressed, it is one more factor that will exacerbate the opportunity gap that defines much of America in the year 2026," Smith told Axios.