The top 10 states in the US for securing employment in the AI industry during its growth spurt.

• The commercial potential of artificial intelligence is so great that states are competing to be at the forefront of its development.
• When it comes to AI innovation, talent, and regulation, clear leaders are emerging.
• For the first time in 2024, the CNBC America's Top States for Business rankings will take into account state AI efforts.

The printing press is comparable to the significance of artificial intelligence, according to Russell Wald, the deputy director of the Stanford Institute for Human-Centered Artificial Intelligence.

He stated that this technology, being a general-purpose technology, would impact everyone and everywhere.

Wald stated that the existence of a whole institute at Stanford dedicated to AI is a testament to the importance of the subject. Similarly, other institutes at Stanford focus on subjects such as neuroscience, foreign policy, and public affairs, and AI should be considered in a similar manner.

To ensure that we're getting all the key aspects of this, it requires a broad mandate and an important viewpoint from a variety of stakeholders, as he stated.

Some states are competing to be at the forefront of the vast field.

For the first time, CNBC is incorporating several AI metrics into its America's Top States for Business rankings, considering AI as part of the Technology and Innovation category and the Business Friendliness category, at a time when the industry has a complex relationship with regulation.

Wald stated, "I believe they desire regulation until they no longer need it."

Some of the largest companies in AI are urging lawmakers and policymakers to provide guidance, as they position themselves in the evolving AI landscape.

Kent Walker, president of global affairs for Google and its parent company, Alphabet, wrote in a blog post last fall that broad-based efforts are needed across government, companies, universities, and more to translate technological breakthroughs into widespread benefits while mitigating risks.

He advocated for policies that foster AI growth, while also implementing safeguards such as privacy laws to prevent misuse.

Some in the industry are concerned about states becoming too aggressive.

In a May interview with Semafor, TechNet CEO Linda Moore stated that they are currently monitoring over 420 bills at the state level that are related to AI.

She stated that several bills regulate things like deepfakes and pornography, while others should be handled by the federal government.

"It's not in anyone's best interest to create a patchwork of state AI regulations," she stated.

We relied heavily on data from the 2024 edition of the Stanford institute's AI Index Report, which has been published annually since 2018, to capture the state of AI across the states. The report provides information on AI-related jobs, where they are located, and where employers are hiring. Additionally, it examines AI innovation, specifically focusing on the development of AI models and the states leading in AI regulations.

We supplement regulatory data with information from the National Conference of State Legislatures. We analyzed which states have the highest STEM employment, based on Labor Department data. Additionally, we used data from Top500.org to measure computing power, essential for advancing AI technology.

Wald stated that a substantial amount of computational resources, data resources, and talent will be required.

The new, dynamic, and all-encompassing field is challenging to measure precisely, but in the initial stages, these states are taking the lead.

10. Utah

Despite receiving less science and technology grant money than other states, Utah's thriving tech industry, with its seventh-highest concentration of STEM talent, positions it well for the future as AI continues to grow. In March, Gov. Spencer Cox signed the Utah Artificial Intelligence Policy Act, which requires companies to disclose to consumers if they are interacting with a generative AI tool.

The ranking of Technology & Innovation is 32, with a grade of D+ for the top states.

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

New York is striving to become a leader in AI with the establishment of Empire AI, a consortium between the state and industry, in April. The initiative includes $275 million in state funds to create an AI computing center at the University of Buffalo. The state has already produced 48 AI models and is home to AI names such as EleutherAI, Hugging Face, and BigScience. Additionally, New York's growing semiconductor industry, including a giant Micron Technology manufacturing complex under construction near Syracuse, is also playing a role. Despite receiving a failing grade overall for Business Friendliness, New York has attempted to take a more evenhanded approach to AI.

The ranking of Technology & Innovation is No. 1 (tie) and the Top States Grade is 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

The Colorado AI Act, which emphasizes transparency to consumers, is gaining attention. One of its provisions prohibits "algorithmic discrimination." Gov. Jared Polis signed the law with reservations, citing the potential for a patchwork of state laws. The law does not take effect until 2026 to allow for tweaks as new advances occur.

The ranking of Technology & Innovation is 14th, with a top grade of 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

Argonne National Laboratory in Chicago, with its four most powerful supercomputers, has emerged as a vital hub for AI research. The lab's researchers are now focusing on artificial intelligence and machine learning as major areas of interest. Illinois was one of the first states to regulate AI, enacting legislation in 2020 that imposed restrictions on the use of AI in analyzing video-recorded job interviews.

The ranking of Technology & Innovation is No. 6 with a top grade of A (States).

No. 33 (tie) in Business Friendliness Rank with a Top States Grade of C-.

Workforce Rank: No. 37 (Top States Grade: D-)

Colleges & Universities: 147

AI Job Postings: 20,178

6. Massachusetts

The Massachusetts High Technology Council has identified AI as a key component of its MassVision2050 initiative, which outlines the state's plan for the next 25 years. The organization believes that AI has great potential in fintech and healthcare, two areas where the state already excels. AI-related hiring in the state is growing at a rapid pace, making it one of the fastest-growing fields in the nation. Additionally, the state has taken steps to ensure that consumers are protected from unethical uses of AI systems.

The ranking of Technology & Innovation is No. 3, with a top grade of 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

Texas, with its thriving chip industry and skilled workforce, is frequently mentioned in discussions about AI. While its relaxed regulatory approach may be appealing to businesses in general, it lacks guidance in the AI field, which is crucial at this time. Nevertheless, Texas is not disregarding the issue. Speaker Dade Phelan of the Texas House has established a select committee on artificial intelligence, tasked with providing recommendations for the upcoming legislative session.

The ranking of Technology & Innovation is No. 1 (tie) and the Top States Grade is A+.

The ranking of business friendliness is 17th (tie) with a top state grade of C+.

Workforce Rank: No. 1 (Top States Grade: A+)

Colleges & Universities: 225

AI Job Postings: 36,413

4. Virginia

Virginia Gov. Glenn Youngkin has been actively involved in AI regulation, signing an executive order in January outlining acceptable uses for AI in education, law enforcement, and information technology. He also established an AI task force to make recommendations every two years. The Stanford Institute has recognized Virginia as one of the most active regulators of AI, with six AI-related bills passed. Additionally, Virginia's top-notch education system is producing a steady stream of highly skilled workers.

The ranking of Technology & Innovation is 15, with a top grade of 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 state of Maryland has been at the forefront of AI regulation, similar to Illinois. Recently, Gov. Wes Moore signed an executive order to establish a strategy for AI policymaking. The order created a ten-member subcabinet of state officials and outlined principles for fairness, equity, innovation, privacy, safety, security, reliability, and transparency. Johns Hopkins University's ARCH center houses the Rockfish supercomputer, one of the world's most powerful.

The ranking of Technology & Innovation is 8th, with a top grade of A-.

No. 37 (tie) in Business Friendliness Rank with a Top States Grade of C-.

Workforce Rank: No. 28 (Top States Grade: D+)

Colleges & Universities: 51

AI Job Postings: 16,312

2. Washington

Washington, home to Microsoft and Amazon, has a significant presence in AI. Stanford reports that 22 AI models have been developed in the state. The state has enacted several AI laws, including restrictions on deepfakes and legal recourse for individuals whose images are used in AI-generated porn. This year, the state legislature established an AI task force to guide future regulation.

The ranking of Technology & Innovation is No. 4, with a top grade of A+.

The state ranks 42nd in business friendliness, with a grade of "D" in the top states category.

Workforce Rank: No. 5 (Top States Grade: B+)

Colleges & Universities: 72

AI Job Postings: 14,725

1. California

Stanford's Wald stated that California is the dominant force in AI, similar to how it is in many areas of technology.

He stated that California is the leader in a significant manner, surpassing others.

Besides boasting an abundance of research institutions, such as Stanford and the University of California-Berkeley, California is also home to San Francisco and Silicon Valley, where companies like Google, Meta, OpenAI, Adobe, and Nvidia reside.

According to a Stanford report, 100 AI models have been developed by California companies and institutions. Gov. Gavin Newsom has been a significant supporter of the technology, enacting an executive order last year to maintain California's position as the industry leader.

California is known for its success in fostering top tech companies, but there are concerns that the state may repeat its history of overregulating these companies.

"Numerous tech companies are drawn to this location for various reasons, but the regulatory environment is not among them," Linda Moore of TechNet stated to Semafor last month.

A bill authored by San Francisco State Senator Scott Wiener is receiving opposition from the industry despite California having passed 13 AI-related laws, most of which the industry has supported.

The bill, according to Wiener, achieves a balance between reasonable regulation and innovation.

"The bill SB 1047 establishes reasonable constraints to minimize risks while allowing startups to innovate without any additional obligations," he stated.

The bill includes safeguards against misuse and reflects some provisions in President Biden's October executive order on AI. However, critics argue that it goes too far.

The bill, which has passed the State Senate and is under consideration in the State Assembly, is still a "work in progress," acknowledged Wiener.

At this stage, investing in more computing power and talent development is one of the most effective things states can do, according to Wald.

The state that is investing and enabling individuals to pursue careers in either industry or government is the one that I believe will succeed, according to him.

While California currently leads the way in AI development, the competition is just starting.

The ranking of Technology & Innovation is No. 5, with a top grade of A for the states.

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