In this article, we will look at the top 20 US states for AI jobs. We have also discussed the growth of AI in the employment landscape in the US. If you want to skip our detailed analysis, head straight to the Top 5 US States for AI Jobs.
Artificial intelligence (AI) has witnessed exceptional growth since its inception in 1956, reaching new heights with milestones such as the launch of ChatGPT-3.5 in 2022. This technology offers immense benefits for businesses such as automation, enhanced analytics, and improved decision-making powers. As evidenced by Bloomberg Intelligence's projection of a $1.3 trillion market for generative AI by 2032, it's clear that AI adoption is no longer a choice but a necessity for businesses aiming to stay competitive and maximize outcomes.
The impact of AI on hiring practices is also profound as recruiters are increasingly seeking AI experts to integrate this transformative technology into their operations. Data from the Upwork Inc (NASDAQ:UPWK) Research Institute has highlighted a tenfold increase in weekly search queries related to generative AI from Q4 2022 to Q1 2023. Interestingly, contrary to fears of job displacement, AI adoption is driving an increase in demand for both freelancers and full-time employees, as businesses recognize the need for skilled professionals. To read more about AI displacing jobs, see 16 Jobs That Will Disappear in the Future Due to AI.
However, AI is not merely replacing existing roles but reshaping the job market by creating new opportunities and enabling workers to operate more strategically within their domains. McKinsey estimates that by 2030, up to 30% of current work hours across different sectors could be automated, thanks to AI development. This automation of repetitive tasks allows workers to focus on higher-value activities, driving productivity and promoting innovation across industries. To read more about AI creating jobs, see the Jobs AI Will Create.
While concerns persist regarding the potential threat of AI to certain roles, proactive measures can mitigate such risks. Workers in fields susceptible to automation can embrace AI tools to enhance their skill sets and remain relevant in the evolving job market. By capitalizing on AI-powered analytics and automation, individuals can augment their capabilities, drive efficiencies, and adapt to the changing demands of their professions, ensuring continued career growth and resilience in the face of technological disruption.
It is also worth highlighting that the rise of generative AI has spotlighted the dominance of the San Francisco Bay Area in the tech industry. According to a report by the Brookings Institution, of the approximately 2,200 generative AI job postings in the last year across 380 US metro areas, a quarter were in the Bay Area. This concentration of opportunities suggests a "winner take most" scenario, further solidifying the region's hold on technology. It is worth highlighting that the US is also known to be the country that has the most jobs for AI.
While the prominence of San Francisco and San Jose in the tech industry may not come as a surprise, the Brookings report challenges the idea that smaller tech hubs like Austin or Miami could emerge as contenders. Instead, it suggests that the Bay Area's influence could strengthen. With the majority of investment and top startups in generative AI located in Silicon Valley, the region remains the epicenter of technological innovation. To read more about artificial intelligence, see the list of of 55 Artificial Intelligence Companies in USA.
Speaking of AI companies, Amazon.com, Inc (NASDAQ:AMZN)'s commitment to developing AI is evident through its investment in Anthropic, a San Francisco-based startup. With an additional $2.75 billion injection, Amazon.com, Inc (NASDAQ:AMZN)’s total investment in Anthropic now stands at $4 billion.
Collaboration between Amazon.com, Inc (NASDAQ:AMZN) and Anthropic extends beyond financial investment to technology development. Anthropic will capitalize on AWS as its primary cloud provider and utilize Amazon.com, Inc (NASDAQ:AMZN)’s custom chips to build, train, and deploy AI models. Furthermore, AWS customers, predominantly businesses, will gain access to Anthropic's AI models through Amazon.com, Inc (NASDAQ:AMZN)’s service, Bedrock. Interestingly, companies like Delta Air Lines and Siemens are already utilizing Bedrock to access Anthropic's AI capabilities, highlighting the practical applications and demand for AI solutions in various industries.
Amazon.com, Inc (NASDAQ:AMZN)’s investment in Anthropic aligns with the overall tech industry, where major players are actively investing in AI startups. This trend reflects growing public and business interest in AI technologies and their potential to drive innovation across sectors.
On the other hand, with an aim to address the global AI skills gap, International Business Machines Corp (NYSE:IBM) has planned on training two million learners in artificial intelligence by the end of 2026, with a specific focus on underrepresented communities. This commitment aligns with a growing recognition of the importance of AI skills in the workforce, as highlighted by a recent study indicating that 40% of executives foresee the need for their workforce to reskill over the next three years due to AI and automation implementations. To achieve this ambitious goal, International Business Machines Corp (NYSE:IBM) is expanding its collaborations with universities globally and partnering with NGOs to deliver AI training to adult learners. Additionally, International Business Machines Corp (NYSE:IBM) is launching new generative AI coursework through its SkillsBuild platform, offering enhanced access to AI education and technical roles.
International Business Machines Corp (NYSE:IBM) will be providing AI training for university faculty and students, offering free online courses on generative AI and other topics through IBM SkillsBuild, and introducing a roadmap of new course offerings in generative AI.
Top 20 US States for AI Jobs
Our Methodology
To list the top 20 states for AI jobs, we identified top 25 states with the highest number of AI job positings in the US using 2023 Stanford's AI index report. Then, for each state, we looked up the average salaries for AI jobs in those states. Out of the 25 states, 20 with the highest average salaries were eventually selected. The list has now been presented in ascending order of average salaries.
By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
20. Oregon
Average Salary: $111,200
Job Postings: 10,811
Oregon is considered a top state for AI jobs owing to its thriving tech ecosystem, anchored by companies like Intel, Nike, and Autodesk. These industry giants provide ample opportunities for AI professionals. Moreover, Oregon has renowned research institutions such as Oregon State University and the University of Oregon, promoting talent pipelines and innovation hubs.
19. Missouri
Average Salary: $111,362
Job Postings: 10,990
The presence of leading companies like Bayer and International Business Machines Corp (NYSE:IBM), alongside emerging startups, creates a rich talent pool and collaborative environment. Missouri's commitment to AI education through programs like LaunchCode and the University of Missouri ensures a steady influx of skilled professionals, solidifying its position as a top destination for AI careers.
18. Indiana
Average Salary: $111,842
Job Postings: 9247
Indianapolis has become an important hub for AI employment, with 140,000 jobs, equivalent to over 13% of its workforce, at risk of automation, placing it 15th among the top 50 US cities prone to AI-driven job displacement. Nevertheless, the average salary of an AI expert in the state in $111,842, making it one of the leading states in AI jobs.
Florida is one of the best states for AI jobs, especially with an increase in educational initiatives and industry growth. With institutions like Pasco County’s Angeline Academy of Innovation introducing AI education, the state is cultivating talent early on. Schools and programs, including the Florida Virtual School Program, are adapting to this trend, ensuring students are equipped with AI skills. Moreover, partnerships between universities and online platforms, like the collaboration between edX.org and the University of Central Florida, democratize AI education.
16. North Carolina
Average Salary: $115,124
Job Postings: 23,854
The state's renowned universities, such as Duke University and the University of North Carolina at Chapel Hill, tend to promote top-tier talent and cutting-edge research in AI. Additionally, the Research Triangle Park serves as a nucleus for tech innovation, attracting major corporations and startups alike.
15. Wisconsin
Average Salary: $116,079
Job Postings: 8879
Despite being a smaller market compared to tech giants like California, Wisconsin offers a niche environment with over 8,000 AI-related job openings and an average salary of $116,079 per year. The state's commitment to AI education and research through institutions like the University of Wisconsin System ensures a steady pipeline of skilled professionals.
14. Pennsylvania
Average Salary: $116,692
Job Postings: 20,397
The University of Pennsylvania, a trailblazer in education and technology, has launched the first Ivy League undergraduate degree in Artificial Intelligence (AI), addressing the pressing demand for skilled professionals in the field. Launching in fall 2024, the program equips students with high-level coursework covering machine learning, computing algorithms, data analytics, and advanced robotics, making Pennsylvania one of the top states for AI education.
13. New Jersey
Average Salary: $117,771
Job Postings: 23,447
Between January 2023 and July 2023, New Jersey experienced a remarkable job increase/growth of 12% in the field for artificial intelligence. Moreover, the advertised mean salary in the state during this period was $140,032. This increase in employment opportunities along with a high mean salary reflects a strong economic landscape, indicating a favorable environment for professionals seeking rewarding career prospects in AI in New Jersey.
12. Ohio
Average Salary: $117,822
Job Postings: 19,208
Ohio's AI job prospects are flourishing owing to a shift towards occupations requiring critical thinking, interpersonal skills, and design expertise. Research by Ohio University suggests that jobs relying heavily on physical tasks face automation threats, while those demanding cognitive abilities exhibit growth potential. Consequently, higher education and job training programs are adapting to meet the demand for technical skills and higher qualifications.
11. Washington
Average Salary: $119,843
Job Postings: 31,284
Seattle Washington, is a top city for AI jobs in the US owing to several factors. Firstly, it's home to tech giants like Amazon and Microsoft, which heavily invest in AI research and development. Additionally, the presence of top-tier universities like the University of Washington tend to promote and prepare exceptional professionals in the field.
With an average salary of $119,843 for an AI expert, Washington is one of the states with the highest salary in the US for AI.
10. Michigan
Average Salary: $ 119,914
Job Postings: 25,366
Michigan is at the forefront of AI job opportunities and has therefore, become a top destination for professionals in artificial intelligence. With a quarter of US businesses integrating AI into operations, Michigan is witnessing an increase in AI-related employment with 25,366 job positings in AI.
9. Minnesota
Average Salary: $121,206
Job Postings: 11,808
Minnesota's flourishing tech ecosystem, led by industry giants fuels a vibrant AI job market. These companies are deeply committed to advancing AI research and development, contributing to the state's dynamic technological landscape. Furthermore, Minnesota's prestigious academic institutions, such the University of Minnesota and the Mayo Clinic, play a pivotal role in nurturing talent for AI-related fields.
8. Washington, DC
Average Salary: $124,736
Job Postings: 9606
In Washington DC, Maryland, and Virginia, AI job listings increased to 1,110 in December 2023, surpassing the Bay Area's 1,076, according to a JLL report. The region's diverse industries, supported by federal spending and government contracts, contribute to the demand for AI specialists. AI-related positions constitute 1.72% of all job listings in DC, the highest in the country. Over the past five years, the capital region has become the second-largest hub for AI jobs, trailing only California.
7. Virginia
Average Salary: $126,969
Job Postings: 34,221
With 34,221 job positings for artificial intelligence roles, Virginia is one of the states with the highest demand for AI engineers.
Apart from housing a plethora of AI jobs, Virginia, under Gov. Glenn Youngkin's leadership, has began working on it’s AI regulation with comprehensive guidelines covering state agencies and classrooms. The executive order addressed both educational integration and safeguarding individual data in databases.
6. Connecticut
Average Salary: $127,117
Job Postings: 8960
The presence of prestigious organizations like United Technologies Research Center (UTRC), which focuses on aerospace and building systems, provides ample opportunities for AI specialists to engage in cutting-edge projects in the state. Moreover, Connecticut's excellent location in the Northeast Corridor grants professionals access to a vibrant network of tech hubs, including neighboring states like Massachusetts and New York. Both these reasons explain why Connecticut is one of the top states for AI jobs in the US.
