Technology

Ranking the States With the Most AI Businesses

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Melly Alazraki
Published:

Tech darling Nvidia (NASDAQ: NVDA) announced on Sunday its newest artificial intelligence chip — just three months after unveiling the previous model. Clearly, the AI chip leader wants to keep its top spot in the space. Aiming to challenge it, Advanced Micro Devices (NASDAQ: AMD) unveiled its latest AI chip a day after. Other competitors, established companies and budding startups, also want to join this competitive space as AI is increasingly being used by companies, governments, and people. (Also see: 3 AI Stocks Wall Street Expects to Return Up to 595% in 2024.)

This cutting edge technology, which could profoundly affect our future, already has several relatively broadly used applications, including autonomous vehicles, robotic manufacturing, fraud detection, risk assessment, chatbots (service, marketing, and more), content creation, traffic prediction, virtual assistance, quality assurance, and a myriad more. Many companies, small and large, use AI to facilitate, improve, and grow their business.

To determine the states with the most AI businesses, 24/7 Wall St. reviewed data on AI business applications from the U.S. Census Bureau’s Business Trends and Outlook Survey. States were ranked based on the percentage of surveyed businesses who report using artificial intelligence to produce goods or services between Jan. 4, 2024 and Feb. 25, 2024. Supplemental data on the percentage of workers employed in the information sector and average annual wage for information sector workers is from the Bureau of Labor Statistics Quarterly Census of Employment and Wages and is for 2022. Data on the most common AI use applications is also from the BTOS.

Depending on the state, between 1.7% and 7.4% of businesses in the 50 state use AI , with Mississippi having the lowest share and Colorado the highest. Mississippi also has the lowest average wage for information sector workers, at $59,647 a year. The average wage of information sector workers in Colorado is more than double, at $136,935 annually — the seventh highest of all states. Similarly, while only 1.1% of Mississippi’s labor force work in the information sector, 3.3% of Colorado’s labor force do.

Marketing automation is the most common AI use among businesses using the technology. This is followed by natural language processing, virtual agents or chat bots, speech/voice recognition, machine learning, and data analytics, among others.

Why Are We Covering This

Robot concept or robot hand chatbot pressing computer keyboard enter
Source: sompong_tom / iStock via Getty Images
While AI is all the rage these days, as evidenced by Nvidia’s stock more than doubling since the beginning of the year, it is far from fully proliferated. Here we not only show how comparatively few businesses have so far adapted AI technology, but also where adaptation is fastest.

50. Mississippi

Source: SeanPavonePhoto / iStock via Getty Images
  • Businesses currently using AI: 1.7%
  • Employment in information sector, 2022: 1.1% (3rd lowest)
  • Average annual wage in information sector, 2022: $59,647 (the lowest)
  • Most common AI uses: Marketing automation using AI

49. West Virginia

The West Virginia State Capitol Building in Charleston, WV by o palsson
The West Virginia State Capitol Building in Charleston, WV (BY 2.0) by o palsson
  • Businesses currently using AI: 2.3%
  • Employment in information sector, 2022: 1.5% (13th lowest)
  • Average annual wage in information sector, 2022: $67,506 (3rd lowest)
  • Most common AI uses: Marketing automation using AI

48. Maine

Maine State Capitol Building, Augusta, Oct 2015 by MonsieurNapolu00e9on
Maine State Capitol Building, Augusta, Oct 2015 (BY-SA 3.0) by MonsieurNapolu00e9on
  • Businesses currently using AI: 2.3%
  • Employment in information sector, 2022: 1.5% (18th lowest)
  • Average annual wage in information sector, 2022: $75,307 (9th lowest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots

47. North Dakota

Source: 4nadia / iStock via Getty Images
  • Businesses currently using AI: 2.9%
  • Employment in information sector, 2022: 1.7% (24th lowest)
  • Average annual wage in information sector, 2022: $83,710 (19th lowest)
  • Most common AI uses: Virtual agents or chat bots

46. Vermont

Source: AlbertPego / iStock Editorial via Getty Images
  • Businesses currently using AI: 3.1%
  • Employment in information sector, 2022: 1.8% (25th highest)
  • Average annual wage in information sector, 2022: $78,275 (14th lowest)
  • Most common AI uses: Natural language processing, marketing automation using AI, machine learning

45. Arkansas

Source: ChrisBoswell / iStock via Getty Images
  • Businesses currently using AI: 3.2%
  • Employment in information sector, 2022: 1.2% (4th lowest)
  • Average annual wage in information sector, 2022: $76,392 (11th lowest)
  • Most common AI uses: Virtual agents or chat bots, marketing automation using AI, speech/voice recognition using AI

44. South Dakota

Source: powerofforever / E+ via Getty Images
  • Businesses currently using AI: 3.5%
  • Employment in information sector, 2022: 1.4% (12th lowest)
  • Average annual wage in information sector, 2022: $64,239 (2nd lowest)
  • Most common AI uses: Marketing automation using AI, machine learning, natural language processing

43. Oklahoma

Source: Majestic_Aerials / iStock via Getty Images
  • Businesses currently using AI: 3.5%
  • Employment in information sector, 2022: 1.4% (8th lowest)
  • Average annual wage in information sector, 2022: $73,061 (7th lowest)
  • Most common AI uses: Virtual agents or chat bots, marketing automation using AI, speech/voice recognition using AI

42. New Jersey

Source: Ultima_Gaina / iStock via Getty Images
  • Businesses currently using AI: 3.5%
  • Employment in information sector, 2022: 2.1% (12th highest)
  • Average annual wage in information sector, 2022: $145,883 (5th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, data analytics using AI

41. New Hampshire

Source: DenisTangneyJr / E+ via Getty Images
  • Businesses currently using AI: 3.5%
  • Employment in information sector, 2022: 2.0% (15th highest)
  • Average annual wage in information sector, 2022: $130,356 (8th highest)
  • Most common AI uses: Marketing automation using AI, speech/voice recognition using AI, virtual agents or chat bots

40. Louisiana

Louisiana State Capitol by Stuart Seeger
Louisiana State Capitol (CC BY 2.0) by Stuart Seeger
  • Businesses currently using AI: 3.5%
  • Employment in information sector, 2022: 1.5% (14th lowest)
  • Average annual wage in information sector, 2022: $72,401 (5th lowest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, data analytics using AI

39. Nebraska

Source: Miriam Bade / iStock via Getty Images
  • Businesses currently using AI: 3.6%
  • Employment in information sector, 2022: 2.2% (10th highest)
  • Average annual wage in information sector, 2022: $81,759 (17th lowest)
  • Most common AI uses: Virtual agents or chat bots, speech/voice recognition using AI, marketing automation using AI

38. Alabama

Source: Sean Pavone / iStock via Getty Images
  • Businesses currently using AI: 3.7%
  • Employment in information sector, 2022: 1.4% (10th lowest)
  • Average annual wage in information sector, 2022: $79,322 (15th lowest)
  • Most common AI uses: Text analytics using AI, data analytics using AI, virtual agents or chat bots

37. Michigan

Source: Sean Pavone / iStock via Getty Images
  • Businesses currently using AI: 3.8%
  • Employment in information sector, 2022: 1.5% (19th lowest)
  • Average annual wage in information sector, 2022: $97,811 (25th highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, speech/voice recognition using AI

36. Indiana

Source: Coy St. Clair / iStock via Getty Images
  • Businesses currently using AI: 3.8%
  • Employment in information sector, 2022: 1.0% (2nd lowest)
  • Average annual wage in information sector, 2022: $74,355 (8th lowest)
  • Most common AI uses: Marketing automation using AI, natural language processing, virtual agents or chat bots

35. Iowa

Source: pabradyphoto / iStock via Getty Images
  • Businesses currently using AI: 3.8%
  • Employment in information sector, 2022: 1.5% (15th lowest)
  • Average annual wage in information sector, 2022: $75,636 (10th lowest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, speech/voice recognition using AI

34. Connecticut

Source: ChrisBoswell / iStock via Getty Images
  • Businesses currently using AI: 3.8%
  • Employment in information sector, 2022: 2.2% (9th highest)
  • Average annual wage in information sector, 2022: $145,448 (6th highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, virtual agents or chat bots

33. Montana

Source: Ultima_Gaina / iStock via Getty Images
  • Businesses currently using AI: 3.9%
  • Employment in information sector, 2022: 1.4% (11th lowest)
  • Average annual wage in information sector, 2022: $78,219 (13th lowest)
  • Most common AI uses: Marketing automation using AI, data analytics using AI, speech/voice recognition using AI

32. Kentucky

Source: alexeys / iStock via Getty Images
  • Businesses currently using AI: 3.9%
  • Employment in information sector, 2022: 1.3% (6th lowest)
  • Average annual wage in information sector, 2022: $72,929 (6th lowest)
  • Most common AI uses: Marketing automation using AI, machine learning, data analytics using AI

31. Wisconsin

Source: CharlieTong / iStock via Getty Images
  • Businesses currently using AI: 4.1%
  • Employment in information sector, 2022: 1.8% (22nd highest)
  • Average annual wage in information sector, 2022: $106,459 (19th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, text analytics using AI

30. South Carolina

Wade Hampton Statue on the South Carolina Capitol Grounds -- Columbia (SC) July 2012 by Ron Cogswell
Wade Hampton Statue on the South Carolina Capitol Grounds -- Columbia (SC) July 2012 (BY 2.0) by Ron Cogswell
  • Businesses currently using AI: 4.1%
  • Employment in information sector, 2022: 1.7% (22nd lowest)
  • Average annual wage in information sector, 2022: $88,087 (22nd lowest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, speech/voice recognition using AI

29. Pennsylvania

Pennsylvania State Capitol, Harrisburg, PA by w_lemay
Pennsylvania State Capitol, Harrisburg, PA (BY-SA 2.0) by w_lemay
  • Businesses currently using AI: 4.1%
  • Employment in information sector, 2022: 1.8% (24th highest)
  • Average annual wage in information sector, 2022: $116,643 (14th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

28. New York

New York State Capitol by wadester16
New York State Capitol (BY-SA 2.0) by wadester16
  • Businesses currently using AI: 4.1%
  • Employment in information sector, 2022: 3.7% (3rd highest)
  • Average annual wage in information sector, 2022: $164,504 (3rd highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

27. Hawaii

Hawaii State Capitol with dramatic cloud by Eric Fischer
Hawaii State Capitol with dramatic cloud (BY 2.0) by Eric Fischer
  • Businesses currently using AI: 4.1%
  • Employment in information sector, 2022: 1.7% (25th lowest)
  • Average annual wage in information sector, 2022: $88,812 (23rd lowest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, text analytics using AI

26. Alaska

Source: volvob12b / Flickr / Public Domain
  • Businesses currently using AI: 4.2%
  • Employment in information sector, 2022: 2.0% (18th highest)
  • Average annual wage in information sector, 2022: $80,366 (16th lowest)
  • Most common AI uses: Marketing automation using AI, natural language processing, virtual agents or chat bots

25. Ohio

Source: Davel5957 / iStock via Getty Images
  • Businesses currently using AI: 4.3%
  • Employment in information sector, 2022: 1.5% (16th lowest)
  • Average annual wage in information sector, 2022: $87,631 (21st lowest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, text analytics using AI

24. Illinois

Source: fotoguy22 / iStock via Getty Images
  • Businesses currently using AI: 4.4%
  • Employment in information sector, 2022: 1.9% (20th highest)
  • Average annual wage in information sector, 2022: $123,278 (11th highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, virtual agents or chat bots

23. Rhode Island

Source: DenisTangneyJr / E+ via Getty Images
  • Businesses currently using AI: 4.5%
  • Employment in information sector, 2022: 1.4% (7th lowest)
  • Average annual wage in information sector, 2022: $95,815 (25th lowest)
  • Most common AI uses: N/A

22. New Mexico

Source: DenisTangneyJr / iStock via Getty Images
  • Businesses currently using AI: 4.5%
  • Employment in information sector, 2022: 1.6% (21st lowest)
  • Average annual wage in information sector, 2022: $77,406 (12th lowest)
  • Most common AI uses: Speech/voice recognition using AI, marketing automation using AI, virtual agents or chat bots

21. Georgia

Georgia State Capitol 2, Atlanta, Georgia by TexasExplorer98
Georgia State Capitol 2, Atlanta, Georgia (BY 2.0) by TexasExplorer98
  • Businesses currently using AI: 4.5%
  • Employment in information sector, 2022: 3.1% (6th highest)
  • Average annual wage in information sector, 2022: $128,278 (9th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

20. Virginia

State Capitol of the Commonwealth of Virginia -- Richmond (VA) June 2012 by Ron Cogswell
State Capitol of the Commonwealth of Virginia -- Richmond (VA) June 2012 (BY 2.0) by Ron Cogswell
  • Businesses currently using AI: 4.7%
  • Employment in information sector, 2022: 2.1% (11th highest)
  • Average annual wage in information sector, 2022: $127,558 (10th highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, data analytics using AI

19. Missouri

Old St. Louis County Courthous... by Warren LeMay
Old St. Louis County Courthous... (CC BY-SA 2.0) by Warren LeMay
  • Businesses currently using AI: 4.7%
  • Employment in information sector, 2022: 2.0% (17th highest)
  • Average annual wage in information sector, 2022: $98,696 (23rd highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

18. Idaho

Source: Seibel Photography LLC / iStock via Getty Images
  • Businesses currently using AI: 4.8%
  • Employment in information sector, 2022: 1.3% (5th lowest)
  • Average annual wage in information sector, 2022: $83,495 (18th lowest)
  • Most common AI uses: Virtual agents or chat bots, marketing automation using AI, speech/voice recognition using AI

17. Wyoming

Source: JTSorrell / E+ via Getty Images
  • Businesses currently using AI: 4.9%
  • Employment in information sector, 2022: 1.5% (17th lowest)
  • Average annual wage in information sector, 2022: $69,686 (4th lowest)
  • Most common AI uses: Marketing automation using AI, natural language processing, speech/voice recognition using AI

16. Tennessee

Tennessee State Capitol, Nashville, Tennessee by Ken Lund
Tennessee State Capitol, Nashville, Tennessee (BY-SA 2.0) by Ken Lund
  • Businesses currently using AI: 4.9%
  • Employment in information sector, 2022: 2.0% (16th highest)
  • Average annual wage in information sector, 2022: $97,963 (24th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

15. Texas

Source: Jonathan Ross / iStock via Getty Images
  • Businesses currently using AI: 5.1%
  • Employment in information sector, 2022: 2.0% (14th highest)
  • Average annual wage in information sector, 2022: $116,366 (15th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

14. North Carolina

Source: ChrisBoswell / iStock via Getty Images
  • Businesses currently using AI: 5.1%
  • Employment in information sector, 2022: 2.0% (13th highest)
  • Average annual wage in information sector, 2022: $110,498 (16th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

13. Minnesota

Source: rruntsch / iStock via Getty Images
  • Businesses currently using AI: 5.1%
  • Employment in information sector, 2022: 1.8% (23rd highest)
  • Average annual wage in information sector, 2022: $105,537 (20th highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, virtual agents or chat bots

12. Kansas

Source: Davel5957 / E+ via Getty Images
  • Businesses currently using AI: 5.1%
  • Employment in information sector, 2022: 1.6% (20th lowest)
  • Average annual wage in information sector, 2022: $86,174 (20th lowest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

11. Maryland

Source: ChrisBoswell / iStock via Getty Images
  • Businesses currently using AI: 5.7%
  • Employment in information sector, 2022: 1.7% (23rd lowest)
  • Average annual wage in information sector, 2022: $120,742 (13th highest)
  • Most common AI uses: Marketing automation using AI, data analytics using AI, virtual agents or chat bots

10. Massachusetts

Source: DenisTangneyJr / E+ via Getty Images
  • Businesses currently using AI: 5.7%
  • Employment in information sector, 2022: 3.1% (7th highest)
  • Average annual wage in information sector, 2022: $160,432 (4th highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, data analytics using AI

9. Oregon

Capitol Building, Salem, Oregon crop-2.jpg by docoverachiever
Capitol Building, Salem, Oregon crop-2.jpg (BY 2.0) by docoverachiever
  • Businesses currently using AI: 5.8%
  • Employment in information sector, 2022: 2.2% (8th highest)
  • Average annual wage in information sector, 2022: $120,892 (12th highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, speech/voice recognition using AI

8. Washington

Source: halbergman / E+ via Getty Images

  • Businesses currently using AI: 6.1%
  • Employment in information sector, 2022: 5.8% (the highest)
  • Average annual wage in information sector, 2022: $245,129 (the highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, text analytics using AI

7. Arizona

Source: lucky-photographer / iStock via Getty Images
  • Businesses currently using AI: 6.1%
  • Employment in information sector, 2022: 1.9% (19th highest)
  • Average annual wage in information sector, 2022: $105,191 (21st highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

6. California

California State Capitol Building by Prayitno / Thank you for (12 millions +) view
California State Capitol Building (BY 2.0) by Prayitno / Thank you for (12 millions +) view
  • Businesses currently using AI: 6.3%
  • Employment in information sector, 2022: 3.9% (2nd highest)
  • Average annual wage in information sector, 2022: $212,712 (2nd highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, virtual agents or chat bots

5. Utah

Source: DenisTangneyJr / E+ via Getty Images
  • Businesses currently using AI: 6.5%
  • Employment in information sector, 2022: 3.1% (5th highest)
  • Average annual wage in information sector, 2022: $108,173 (18th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, speech/voice recognition using AI

4. Nevada

Source: DenisTangneyJr / iStock via Getty Images
  • Businesses currently using AI: 6.5%
  • Employment in information sector, 2022: 1.4% (9th lowest)
  • Average annual wage in information sector, 2022: $102,394 (22nd highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

3. Delaware

2022-07-20 08 03 40 The east side of the Delaware Legislative Hall (Delaware Capitol Building) in Dover, Kent County, Delaware by Famartin
2022-07-20 08 03 40 The east side of the Delaware Legislative Hall (Delaware Capitol Building) in Dover, Kent County, Delaware (BY-SA 4.0) by Famartin
  • Businesses currently using AI: 6.5%
  • Employment in information sector, 2022: 1.0% (the lowest)
  • Average annual wage in information sector, 2022: $89,824 (24th lowest)
  • Most common AI uses: Machine learning, marketing automation using AI, large language models

2. Florida

Source: Aneese / iStock via Getty Images
  • Businesses currently using AI: 6.6%
  • Employment in information sector, 2022: 1.9% (21st highest)
  • Average annual wage in information sector, 2022: $109,069 (17th highest)
  • Most common AI uses: Marketing automation using AI, virtual agents or chat bots, natural language processing

1. Colorado

Colorado State Capitol, Denver, Colorado by Ken Lund
Colorado State Capitol, Denver, Colorado (BY-SA 2.0) by Ken Lund
  • Businesses currently using AI: 7.4%
  • Employment in information sector, 2022: 3.3% (4th highest)
  • Average annual wage in information sector, 2022: $136,935 (7th highest)
  • Most common AI uses: Marketing automation using AI, natural language processing, virtual agents or chat bots
Read more: Technology, ai applications, ai business uses, ai uses in business, artificial intelligence, Artificial intelligence (AI), chatbots, data analysis, machine learnings, marketing automation, nlp

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