Charlotte’s Position in the AI Future
Charlotte is well-positioned to thrive in an AI-driven future, according to a recent study. However, experts caution that the same technology could lead to workforce changes that widen the city’s existing inequalities. The city’s readiness to embrace AI could determine whether it becomes a leader or a victim of the technological shift.
The report from the Brookings Institution highlights the importance of being prepared for the impact of AI on the economy. It states that AI will play a significant role in economic development due to its potential to increase efficiency, innovation, and productivity across all industries. The ability to harness these benefits will be crucial for cities like Charlotte.
Charlotte as a Star Hub
Brookings has identified the Charlotte-Concord-Gastonia metro area as one of 28 “Star Hubs” — the second-strongest tier for AI ecosystems, just behind the dominant tech hubs of San Francisco and San Jose. The region scored well across three key areas: talent, innovation, and business adoption.
Charlotte stands out for having nearly 7,000 job postings that require AI skills, indicating that the technology is being integrated into existing businesses. The metro also performed strongly in measures such as the number of engineering graduates, online profiles with AI skills, AI research papers and patents granted, and the number of AI startups.
Concerns About Job Displacement
Despite the positive outlook, there are growing concerns about AI leading to widespread job displacement. According to Axios’ Jim VandeHei and Mike Allen, once AI technologies become advanced enough, they could eliminate tens of millions of jobs in a short period.
State Sen. Caleb Theodros, who has developed machine-learning systems that replaced human teams, believes that AI will ultimately create more jobs than it destroys. He notes that more than 60% of today’s roles didn’t exist in 1940. However, he warns that the transition will be challenging.
Theodros points out that Charlotte, as a banking center, may be particularly vulnerable. AI could replace functions such as underwriting, fraud detection, and claims processing. Additionally, the city’s young workforce might move elsewhere if jobs disappear.
The Impact on Specific Groups
Theodros compares the potential impact of AI on white-collar jobs in Charlotte to the automation of blue-collar jobs in Detroit. He argues that while Detroit didn’t collapse because cars became more efficient, it failed to diversify and adapt, leading to its decline.
A local report by Charlotte Works and the Charlotte Regional Business Alliance found that AI could exacerbate disparities in a city already known for poor upward mobility. Research from NBER and Goldman Sachs indicates that between 56% and 81% of occupations most affected by AI are held by women, including roles such as telemarketers, proofreaders, and copywriters.
Preparing for the Future
Kevin Loux, Charlotte Works’ chief impact officer, suggests that the city should focus on raising AI awareness and education at every level, from elementary school to working adults. He explains that even basic AI skills can be beneficial for professionals like plumbers, helping with scheduling, marketing, and promoting their businesses.
Charlotte-Mecklenburg Schools aims to lead the nation in integrating AI into public education but is still figuring out how to incorporate the technology without compromising students’ critical thinking skills.
Strategies for Diversification
Theodros recommends that Charlotte diversify its economy by attracting startups, small businesses, and a range of industries, such as advanced manufacturing, green energy, healthcare, and tech. He is optimistic about The Pearl, a new innovation district expected to boost medical education and research in the region.
Additionally, Theodros advocates for a bipartisan task force involving private sector leaders to explore policies that support workforce development and attract AI talent.
The Bottom Line
Loux emphasizes that AI will create both winners and losers, potentially leading to another major shift in the workforce, similar to the changes brought by the internet and cell phones. The challenge lies in ensuring that Charlotte is prepared to navigate this transformation and avoid deepening existing inequalities.