New study highlights the AI industry challenges within the US

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. 

The study then recommends for the US to invest in other regions so that AI development can be widespread. In order to do so, it suggests developing realistic plans to support local AI, such as focusing on plans to attract and retain AI talents, offer more education opportunities, as well as tax breaks for businesses in the AI industry.
Moreover, the research recommends focusing on AI use cases valuable to local businesses or industries, awards government contracts to local AI companies as well as cities to differentiate themselves through topics like machine learning, high-performance computing, semiconductors, and advanced computer hardware.

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