Anthropic co-founder Jack Clark told leaders at this year's Heartland Summit that the AI boom could bring a major wave of manufacturing and infrastructure investment to the middle of the country.

The challenge: AI may be powered by software, but scaling it requires a massive physical buildout.

During a conversation with former Arkansas Gov. Asa Hutchinson, Clark said the U.S. is now spending more on AI infrastructure than it did on earlier transformative buildouts like railways and interstate highway systems.

Why it's important: Many of the components and materials needed to support that buildout are already made or refined across the heartland, according to Clark.

"If you look across the states of the heartland, there is this amazing contribution to what you might think of as the inputs to the AI and the science supply chain," he explained.

🔍 That includes:

• Transformers, wiring and connector systems used in large AI facilities are manufactured across the middle of the country.
• Cooling systems, power infrastructure and materials used in semiconductor manufacturing and scientific research also have heartland supply-chain ties.

The impact: Clark said this could create opportunities well beyond the data centers dominating headlines today.

• "There's this giant manufacturing boom that's starting around data centers, but there's other stuff beyond it, which will actually be more significant and will be a source of resilient small and medium scale company employment if we get it right," said Clark.

Clark acknowledged that communities have reason to question what AI development will mean for them. He noted that previous waves of economic change did not benefit every community equally, helping explain some of the skepticism surrounding data centers and AI investment today.

• The solution: Clark encouraged policymakers and local leaders to ask AI companies for specific commitments that reflect the needs of their communities.
• "Demand more of us and demand specifics," said Clark.

🚧 Worth a mention: The same technology creating new investment opportunities could also reshape existing jobs. Clark said leaders should prepare now for the possibility that AI displaces some workers and begin thinking through steps to support those workers.

He outlined a three-pronged approach:

• Keep people employed when possible. Clark pointed to policies that can help companies reduce hours rather than immediately lay workers off, giving employees time to transition into other roles.

• Make it easier to start businesses. He argued that AI can lower the barrier to entrepreneurship by handling administrative and back-office tasks, making small-business creation another path for displaced workers.
• Test new policy responses. Because no one can predict exactly how AI will reshape the economy, Clark said governments should pilot approaches now so they have options for sharing the benefits of AI and supporting workers if certain occupations face severe disruption.

The outlook: "I think that anyone that tries to predict the exact way that AI will change the economy is going to be wrong in the specifics," said Clark.

The takeaway: For the heartland, the AI opportunity extends beyond using the technology. With the right planning, the region could also play a role in building the infrastructure, supply chains and businesses that power it.