Charlotte’s Position in the AI Future
Charlotte is well-positioned to thrive in an AI-driven future, according to a new study. However, experts warn that the same technology could lead to workforce shifts that deepen existing inequalities in the city. The ability of Charlotte to prepare for and lead in an AI economy will determine whether it becomes a beneficiary or a victim of this transformation.
The Brookings Institution report highlights the importance of national readiness to benefit from AI, emphasizing its role in driving efficiency, innovation, and productivity across all industries. This is particularly crucial as AI continues to shape economic development.
Ranking as a Star Hub
Charlotte-Concord-Gastonia has been ranked among 28 “Star Hubs” — the second-strongest tier for AI ecosystems, just behind the dominant tech hubs of San Francisco and San Jose. The metro area performed well across three key pillars: talent, innovation, and business adoption. With nearly 7,000 job postings requiring AI skills, Charlotte stands out as a place where AI is being integrated into existing businesses.
The region also excels in measures such as the number of engineering graduates, online profiles with AI skills, AI research papers, patents granted, and the number of AI startups. These factors contribute to Charlotte’s strong position in the AI landscape.
Challenges and Concerns
Despite these positives, AI is feared to bring widespread job displacement. Industry leaders have warned that once technologies are advanced enough, AI could eliminate tens of millions of jobs in a short time. This raises concerns about how the workforce will adapt to such rapid changes.
State Sen. Caleb Theodros, who has built machine-learning systems that replaced human teams, believes that AI will create more jobs than it destroys in the long run. He points out that more than 60% of today’s roles didn’t exist in 1940. However, he warns that the transition will be difficult.
Charlotte may face a tougher challenge due to its status as a banking center, where AI could replace functions like underwriting, fraud detection, and claims processing. Additionally, the city has a significant number of young workers who might move elsewhere if jobs disappear.
Addressing Disparities
Theodros compares the 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.
Mark Muro, a researcher at Brookings, emphasizes the need for markets to assess their strengths and weaknesses related to AI and develop strategies based on their shortcomings. He stresses the urgency of addressing these issues, given the rapid pace of change.
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 copy markers.
Preparing for the Future
Kevin Loux, chief impact officer at Charlotte Works, advises the city to raise AI awareness and education at every level, from elementary school to working adults. He suggests that even professionals like plumbers could benefit from AI skills in areas such as scheduling, marketing, and promoting their businesses.
Charlotte-Mecklenburg Schools aims to lead the nation in public education by embracing AI but is still figuring out how to integrate the technology into the curriculum without compromising students’ critical thinking skills.
Diversifying the Economy
Theodros recommends that Charlotte diversify its economy by attracting startups, small businesses, and a range of industries, including advanced manufacturing, green energy, healthcare, and tech. He expresses optimism about The Pearl, a new innovation district expected to boost medical education and research in the region.
He also advocates for a bipartisan task force involving private sector leaders to explore policies that incentivize workforce development and attract AI talent.
The Bottom Line
Loux concludes that AI will create winners and losers, potentially leading to another seismic shift in the workforce, similar to the impacts of the internet and cell phones. The challenge lies in ensuring that Charlotte can adapt and benefit from this transformation rather than fall behind.