AI hiring growth spreads beyond the biggest tech hubs
ZipRecruiter data shows AI jobs remain concentrated in four states, but faster growth is showing up in Colorado, Utah, Virginia, Texas and Arizona.
By Hana Yoshida · Markets Reporter
3 min read
Companies looking for AI talent are still clustering in a few U.S. states, according to ZipRecruiter, but the fastest growth is emerging outside the best-known tech centers. The shift matters for workers and employers because it points to a broader spread of machine learning, data science and AI work.
ZipRecruiter, a jobs marketplace, found that California, Washington, New York and Massachusetts account for 90% of advertised roles requiring advanced AI skills. The same four states account for 60% of all AI jobs posted on the platform, according to ZipRecruiter.
Those states include major headquarters and large offices for the big U.S. technology companies often grouped as FAANG. ZipRecruiter’s findings show that the market for AI hiring remains highly concentrated even as more companies across the country look for technical staff.
Growth is faster in five other states
ZipRecruiter said AI-related job postings have been rising more quickly in Colorado, Utah, Virginia, Texas and Arizona. Over the past two years, postings in those five states grew 93%, nearly three times the pace recorded in California, Washington, New York and Massachusetts, according to the company.
The data suggests that some employers are building AI teams in places where costs may be lower than in the biggest tech hubs. ZipRecruiter did not say that those five states have overtaken the leading four by total job count, only that their growth rate has been much faster.
Other states showed far less evidence of in-house AI hiring. ZipRecruiter identified Mississippi, Alaska, Kentucky, West Virginia and Louisiana as states where companies appear to be lagging in postings for AI staff.
That does not prove businesses in those states are avoiding AI, according to the analysis. It may mean companies are relying on outside vendors and consultants rather than hiring their own teams to build AI systems.
Startup strength is also uneven
CB Insights’ latest AI 100 list showed a similar concentration in the startup market. The research firm ranked AI-related startups using signals including research and development strength, patents, funding, customer base and market size.
U.S.-based companies made up more than half of the 100 startups on the CB Insights list. China had four companies on the list, while Canada had six and the U.K. had seven, according to CB Insights.
The list also showed gaps in several regions. CB Insights included no startups from Australia or New Zealand, none from South Korea, and just one company each from South America and Africa.
CB Insights drew its companies from 15 industry sectors. Healthcare had nine of the top 100 startups, while finance and insurance together accounted for five, according to the firm.
Some large sectors had little representation. Real estate and legal services each had one company on the CB Insights list, suggesting that AI startup activity is still thin in parts of the economy where technology adoption has been slower.
This story draws on original reporting from Fortune.