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How AI will reshape America’s economic landscape
The COAI team is tracking the latest economic research
New research by economists Scott Abrahams and Frank Levy reveals that artificial intelligence technology could fundamentally reshape America's economic geography, with mid-sized cities in the Midwest, Mid-Atlantic, and South emerging as major beneficiaries. Their study identifies cities like Augusta, Savannah, and Chattanooga as uniquely positioned due to their combination of educated workforces (35-45% college-educated), affordable housing markets (median prices below $225 per square foot), and employment sectors less vulnerable to AI disruption. While traditional tech hubs like San Francisco and Seattle may face challenges from their high concentration of AI-vulnerable jobs (50-60% of current positions), these emerging cities are well-positioned to leverage AI for productivity gains, potentially attracting displaced knowledge workers and new businesses. The widespread adoption of generative AI, capable of performing complex tasks from writing reports to software coding, is expected to affect white-collar professionals more than previous technological shifts, with economists estimating that 15-19% of current work tasks could be automated.
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What’s happening in AI right now
The next wave of enterprise AI: from experimentation to transformation
The enterprise AI landscape is rapidly maturing. While early adopters like Shell have already built a 12,000-employee AI community and deployed solutions across their operations, a broader wave of enterprise adoption is now beginning to take shape. This shift marks an exciting transition from experimental pilots to transformative implementations.
Beyond the pilot phase
The data points to an acceleration in enterprise AI adoption. Job postings mentioning generative AI have surged 3.5x in the past year, signaling strong demand for AI talent. While SAP's research shows only 5-7% of organizations have achieved enterprise-wide AI adoption so far, this represents an enormous opportunity. The foundations are being laid for widespread deployment, with a quarter of organizations already successfully implementing AI in select business areas.
Success stories emerging
Real-world implementations are demonstrating AI's practical impact. Dareesoft's AI system has identified over 2,000 real-time road hazards in Dubai, showcasing how focused AI solutions can tackle specific, high-value problems. Their methodical expansion across the Middle East provides a blueprint for scaling AI implementations.
Shell's comprehensive approach shows how large enterprises can successfully deploy AI at scale. By establishing dedicated AI communities, implementing robust training programs, and carefully selecting use cases, they've created a model for enterprise-wide adoption that others can follow.
The integration opportunity
Rather than viewing organizational integration as a challenge, leading companies are using it as an opportunity to modernize their operations. Gartner's latest research shows how AI is enabling the breaking down of traditional silos between Marketing, Sales, and Customer Success teams, creating more efficient, integrated operations.
Forrester's analysis reinforces this positive trend, highlighting how companies that align AI with clear business objectives are achieving remarkable results. This business-first approach is proving far more successful than technology-led implementations at the moment.
Looking ahead
Like in previous waves of enterprise technology such as bottom up SaaS, AI is enabling a more organic transformation. Employees are naturally incorporating AI tools into their daily work, creating a groundswell of innovation and efficiency gains.
This grassroots adoption, combined with strategic enterprise implementation, suggests we're on the cusp of a significant acceleration in AI deployment. The question isn't whether organizations will achieve enterprise-wide AI adoption, but how quickly they'll get there.
We publish daily research, playbooks, and deep industry data breakdowns. Learn More Here
AI generated art
A look at the art and projects being created with AI
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