How big of a deal is artificial intelligence? Russell Wald, deputy director of the Stanford Institute for Human-Centered Artificial Intelligence, likens it to the printing press.
“This technology is a general purpose technology that’s going to affect everyone and everywhere,” he said.
The mere fact Stanford has a whole institute devoted to AI is a statement, Wald said. Other institutes at Stanford consider such lofty subjects as neuroscience, foreign policy, and public affairs. He said it is appropriate to consider AI in a similar way.
“It requires a broad mandate and an important viewpoint from a variety of stakeholders to ensure that we’re getting all the key aspects of this,” he said.
Given the enormity of the field, it makes sense that some states are jockeying to lead it.
Because of that, for the first time, CNBC is factoring several AI metrics into this year’s America’s Top States for Business rankings. This year’s methodology considers AI as part of the Technology and Innovation category, as well as in the Business Friendliness category at a time when the emerging industry has a love-hate relationship with regulation.
“I think they want to be regulated until they don’t,” Wald said.
For now, some of the biggest players in AI are crying out for at least some direction from legislators and policymakers, as companies stake out their places in the new AI world.
“We need broad-based efforts — across government, companies, universities, and more — to help translate technological breakthroughs into widespread benefits, while mitigating risks,” wrote Kent Walker, president of global affairs for Google and its parent company, Alphabet, in a blog post last fall.
He called for policies that nurture AI development, alongside safeguards like privacy laws to curb misuse.
At the same time, some in the industry worry about states becoming too aggressive.
“We’re already tracking over 420 bills at the state level, just related to AI,” said Linda Moore, CEO of industry lobbying group TechNet, in a May interview with Semafor.
Many of the bills, she said, are understandable, regulating things like deepfakes and pornography. Others take a broader approach that she said should be left to the federal government.
“Creating a patchwork of state AI regulations is not in the best interest of anybody,” she said.
To capture the state of AI across the states, we relied heavily on data from the 2024 edition of the Stanford institute’s AI Index Report, which the institute has published annually since 2018. The report includes data on AI-related jobs — where they are, and where employers are hiring. It also looks at AI innovation, particularly where AI models are being developed, and which states are taking the lead in AI regulations.
We supplement that regulatory data with information from the National Conference of State Legislatures. We looked at which states have the brain power, based on Labor Department data on science, technology, engineering and math (STEM) employment by state. And data from Top500.org helped us measure computing power — crucial to moving AI to the next level and beyond.
“It’ll take a lot of computational resources, data resources, and talent,” Wald said.
A field that is so new, so dynamic, and so all-encompassing is difficult to precisely measure. But in the early going, these states are leading the way.
10. Utah
Utah Department of Motor Vehicle employees help people convert their physical driver licenses to official digital versions to be stored on a mobile phone at a Harmons Grocery store in Salt Lake City, Utah. Utah is the first state in the nation to start to convert and offer digital driver licenses on mobile devices.
George Frey | Getty Images
While Utah lags in science and technology grant money, The Beehive State’s booming tech scene, including the nation’s seventh-highest concentration of STEM talent, positions it well as AI takes off. In March, Gov. Spencer Cox signed the Utah Artificial Intelligence Policy Act, believed to be the first state law requiring companies to disclose to consumers if they are interacting with a generative AI tool.
Technology & Innovation Rank: No. 32 (Top States Grade: D+)
Business Friendliness Rank: No. 12 (Top States Grade: B-)
Workforce Rank: No. 16 (Top States Grade: C-)
Colleges & Universities: 23
AI Job Postings: 3,679
9. New York
US President Joe Biden (2L), with US Senate Majority Leader Chuck Schumer, and New York Governor Kathy Hochul, looks at a 3D rendering of a future Micron factory presenting by CEO of Micron Technology Sanjay Mehrotra (L) during a tour of the Micron Pavilion at the SRC Arena and Events Center of Onondaga Community College in Syracuse, New York on October 27, 2022.
Mandel Ngan | AFP | Getty Images
The Empire State is trying hard to be a leader in AI. In April, Gov. Kathy Hochul and the state legislature established Empire AI, billed as a first-of-its-kind consortium between the state and industry. The initiative includes $275 million in state funds to create an AI computing center at the University of Buffalo. Already, New York has produced 48 AI models, and is home to AI names including EleutherAI, Hugging Face, and the research collaborative it sponsors, BigScience. The state’s growing semiconductor industry, including a giant Micron Technology manufacturing complex under construction near Syracuse, is also playing a role. While New York gets a failing grade overall for Business Friendliness, it has attempted to take a more evenhanded approach to AI.
Technology & Innovation Rank: No. 1 (tie) (Top States Grade: A+)
Business Friendliness Rank: No. 50 (Top States Grade: F)
Workforce Rank: No. 41 (Top States Grade: F)
Colleges & Universities: 288
AI Job Postings: 24,397
8. Colorado
Technicians deploy a portable Dish Network Corp. 5G wireless tower at Daniels Park in Sedalia, Colorado, U.S.
Daniel Brenner | Bloomberg | Getty Images
The Centennial State’s foray into AI regulation is drawing widespread attention. The Colorado AI Act takes a comprehensive approach, with an emphasis on transparency to the consumer. In one of the more thought-provoking provisions, the law prohibits “algorithmic discrimination.” Gov. Jared Polis, in a signing statement, said he was signing the law “with reservations” — mostly involving the potential patchwork of state laws that the industry has warned about. The law does not take effect until 2026, in part to allow the legislature and policymakers to tweak it as new advances occur.
Technology & Innovation Rank: No. 14 (Top States Grade: B+)
Business Friendliness Rank: No. 32 (Top States Grade: C-)
Workforce Rank: No. 11 (Top States Grade: C+)
Colleges & Universities: 60
AI Job Postings: 10,292
7. Illinois
A GroqNode rack is installed by a member of the Groq team at Argonne National Laboratory in Illinois, U.S.
Groq Inc. | Via Reuters
With no fewer than four of the world’s most powerful supercomputers, Argonne National Laboratory outside Chicago has become an important center for AI research. The lab says that artificial intelligence and machine learning have become major areas of interest for Argonne researchers. Illinois was an early mover in AI regulation, enacting legislation in 2020 that includes restrictions on the use of AI in analyzing video-recorded job interviews.
Technology & Innovation Rank: No. 6 (Top States Grade: A)
Business Friendliness Rank: No. 33 (tie) (Top States Grade: C-)
Workforce Rank: No. 37 (Top States Grade: D-)
Colleges & Universities: 147
AI Job Postings: 20,178
6. Massachusetts
A robotic arm operates at a lab at Ginkgo Bioworks in Boston, Massachusetts, U.S. Synthetic biology firm Ginkgo Bioworks has developed tools that US intelligence agencies can use to detect engineered DNA at scale, a milestone that could better protect the nation from human-made biological threats.
Adam Glanzman | Bloomberg | Getty Images
The Massachusetts High Technology Council, an influential organization representing The Bay State’s most cutting-edge industries, has placed AI at the heart of its MassVision2050 initiative — a roadmap for the next 25 years. In particular, the organization sees promise in AI’s role in fintech and health care, two areas where the state is already strong. AI-related hiring in the state is surging at one of the fastest paces in the nation. The state has also sought to add guardrails to protect consumers from unethical uses of AI systems.
Technology & Innovation Rank: No. 3 (Top States Grade: A+)
Business Friendliness Rank: No. 40 (Top States Grade: D+)
Workforce Rank: No. 38 (Top States Grade: F)
Colleges & Universities: 106
AI Job Postings: 23,017
5. Texas
A wellbore placement specialist works remotely to support the automation of drilling operations in a North Dakota oil field at a Nabors Industries Ltd. control room in Houston, Texas, US, on Monday, March 11, 2024. The oil industry is increasingly using AI, machine learning and remote operations to drill faster, suggest better ways to frack and predict when active well pumps will fail.
Callaghan O’Hare | Bloomberg | Getty Images
With its booming chip sector and its world class workforce, Texas is an instant part of any conversation about AI. The state’s characteristic hands-off approach to regulation may be desirable to business in general, but it is also providing little direction to the AI field when it needs it most. The Lone Star State is not ignoring the issue, however. Texas House Speaker Dade Phelan appointed a select committee on artificial intelligence, charged with making recommendations ahead of next year’s legislative session.
Technology & Innovation Rank: No. 1 (tie) (Top States Grade: A+)
Business Friendliness Rank: No. 17 (tie) (Top States Grade: C+)
Workforce Rank: No. 1 (Top States Grade: A+)
Colleges & Universities: 225
AI Job Postings: 36,413
4. Virginia
Lauren Leone, senior bioinformatics and life science manager, of the Noblis life sciences team, left, learns about the Large Outdoor Rover Prototype from Mohammad Goli, Robotic Research Lead, and Drew Dudash, Robotics, inside the Autonomous Systems Lab at the Noblis campus in Reston, Va.
Matt Roth | The Washington Post | Getty Images
Virginia Gov. Glenn Youngkin has taken a keen interest in AI, signing an executive order in January laying out acceptable uses for AI by the state in education, law enforcement and information technology, and creating an AI task force to make recommendations every two years. The Stanford institute says Virginia has been one of the most active regulators of AI, passing six AI-related bills. Virginia’s best-in-the-nation education system is feeding a strong pipeline of intelligent workers.
Technology & Innovation Rank: No. 15 (Top States Grade: B+)
Business Friendliness Rank: No. 5 (Top States Grade: B+)
Workforce Rank: No. 9 (Top States Grade: C+)
Colleges & Universities: 105
AI Job Postings: 24,417
3. Maryland
The Johns Hopkins University is a private research University in Baltimore.
Jonathan Newton | The Washington Post | Getty Images
The Old Line State has also been on the front lines of AI regulation. Like Illinois, Maryland was early in restricting employers’ use of artificial intelligence in the hiring process. More recently, Gov. Wes Moore signed an executive order charting a path forward. The order establishes a ten-member “subcabinet” of state officials to develop a state strategy. And it lays out a set of principles to guide AI policymaking, including fairness and equity, innovation, privacy; safety, security and resiliency; reliability and transparency. Johns Hopkins University’s ARCH center (Advanced Research Computing at Hopkins) is home to the Rockfish supercomputer, one of the most powerful in the world.
Technology & Innovation Rank: No. 8 (Top States Grade: A-)
Business Friendliness Rank: No. 37 (tie) (Top States Grade: C-)
Workforce Rank: No. 28 (Top States Grade: D+)
Colleges & Universities: 51
AI Job Postings: 16,312
2. Washington
The Copilot+PC at the Microsoft campus in Redmond, Washington, US, on Monday, May 20, 2024. Microsoft Corp. chief executive officer Satya Nadella is betting a new generation of computers with specialized artificial intelligence chips and faster performance will revive the long-running rivalry between Windows PCs and Apple Inc.’s Mac.
Chona Kasinger | Bloomberg | Getty Images
Just by being the home of Microsoft and Amazon, The Evergreen State has a huge presence in AI. Stanford says 22 AI models, and counting, were developed in Washington. The state has passed a number of AI laws, including limits on deepfakes, and giving legal recourse to people whose images are used in AI-generated porn. This year, the state legislature established an AI task force to guide future regulation.
Technology & Innovation Rank: No. 4 (Top States Grade: A+)
Business Friendliness Rank: No. 42 (tie) (Top States Grade: D)
Workforce Rank: No. 5 (Top States Grade: B+)
Colleges & Universities: 72
AI Job Postings: 14,725
1. California
Nvidia CEO Jensen Huang delivers a keynote address during the Nvidia GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California.
Justin Sullivan | Getty Images
As in so many aspects of technology, California is the 800-pound gorilla of AI, said Stanford’s Wald.
“California by far is the leader of the pack,” he said. “And not by just a bit, but significantly in comparison.
Not only does California have an enormous wealth of research institutions, like Stanford, the University of California-Berkeley and more, but it also has San Francisco and Silicon Valley — the home of Google, Meta, OpenAI, Adobe, and, of course, Nvidia.
California companies and institutions are responsible for 100 AI models so far, according to the Stanford report. And Gov. Gavin Newsom has been a major booster of the technology, signing a sweeping executive order last year that he said was meant to ensure that California remains the industry leader.
However, some are warning that California risks falling into a familiar pattern with AI. The state is unparalleled when it comes to creating and nurturing leading tech companies, only to overregulate them later.
“A lot of the tech companies love to be here for a lot of reasons. The regulatory environment is not one of them,” TechNet’s Linda Moore told Semafor last month.
California has passed 13 AI-related laws, most of which the industry has been on board with. But a sweeping bill authored by San Francisco State Senator Scott Wiener is getting pushback.
Wiener, a Democrat, said the bill strikes a balance between sensible regulation and innovation.
“SB 1047 puts sensible guardrails in place against risk while leaving startups free to innovate without any new burdens,” he said.
But critics say it goes too far, such as the safeguards against misuse that the bill requires from developers. The bill also mirrors some existing provisions in President Biden’s October executive order on AI.
Wiener acknowledged that the bill, which has passed the State Senate and is under consideration in the State Assembly, is a “work in progress.”
Wald said that one of the most effective things that states can do at this stage is invest in more computing power, and in developing talent.
“The state that’s actually investing and allowing for people to go either into industry or into government to be able to help make a difference is the state that I think is going to succeed,” he said.
For now, no state is succeeding in AI like California. But the race has barely begun.
Technology & Innovation Rank: No. 5 (Top States Grade: A)
Business Friendliness Rank: No. 47 (Top States Grade: F)
Workforce Rank: No. 11 (Top States Grade: C+)
Colleges & Universities: 410
AI Job Postings: 70,630
