A recent study by the Brookings Institution revealed that the American AI industry could be weakened by the fact that it is mainly concentrated in the San Francisco Bay Area.
Indeed, it was reported that the Bay leads in AI research and investment activity, with 1/4 of AI conference papers, patents, and companies in the US. 2/3 of AI activity is concentrated in only 15 metro areas, especially coastlines such as San Francisco and San Jose. On the other hand, more than half of the metro areas together account for just 5% of AI activity.
However, by doing so, it may be overconcentrating, losing diversity, and getting groupthink in the algorithmic economy. There is the fear that AI will reinforce inequality and give more wealth and power to the already rich and powerful. It will also mean that cities with AI development will get all the benefits while those that cannot, will be left behind.