Winning the AI Gold Rush: Losing People and Businesses

So far, California, Washington, New York, and Massachusetts have been the undisputed champions in the AI gold rush, leading the way in AI startups, AI venture capital deals, and AI jobs. In the ZipRecruiter marketplace, AI jobs now account for ten of every 1,000 job postings in California, eight of every 1,000 in Massachusetts and Washington, and six of every 1,000 in New York. 

These states and their superstar cities have been the natural settings for AI research and development to take off. They have, for decades, led the global economy in innovation and digitization, largely because they house some of the world’s best universities and largest companies, most highly skilled workforces, most important ports, and most developed financial sectors. 

Their early success should be encouraging job seekers from around the country to move in, in search of better job opportunities. But, other than Washington, the AI pioneer states are losing more residents than they’re attracting domestically, their economic miracles endangered by a housing affordability crisis, high costs of living, and uncompetitive business environments. 

California-based job seekers in the ZipRecruiter marketplace are increasingly responding to job postings in states like Texas, Arizona, Nevada, Colorado, and Utah. As California’s tech talent pool leaks into other states, those states stand to become the second wave of winners.

Read more about the early winners and the emerging winners in the AI gold rush in ZipRecruiter’s second annual future of work report.

Written by

Julia Pollak is Chief Economist at ZipRecruiter. She leads ZipRecruiter's economic research team, which provides insights and analysis on current labor market trends and the future of work.

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