The robot apocalypse may be science fiction, but the artificial intelligence revolution is real.
That revolution, according to a new Brookings Institution report, is likely to transform some regional economies while leaving others behind. Fortunately for St. Louis, we’re on the list of potential AI beneficiaries.
Artificial intelligence is a catch-all term for technology that allows computers to learn, reason and make decisions. It powers everything from self-driving cars to recommendation engines that tell you which book or movie you might like.
Unfortunately for the middle part of the country, AI’s economic impact is highly concentrated. The San Francisco Bay area alone accounts for a quarter of AI patents and companies. Include 13 other technology hubs, most on the east and west coasts, and two-thirds of AI activity happens in a handful of cities.
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Mark Muro, a Brookings senior fellow and co-author of the report, thinks that winner-take-most outcome is unhealthy.
“We’ve seen the problem that has emerged with technology, where the vast proportion of job creation happens in a handful of metros,” he said. “Most of the country feels remote from that and is beginning to mutiny. We’re losing a national consensus on technology’s value.”
That’s why he’s rooting for places like St. Louis, and for federal programs that fund research outside the traditional tech hubs.
“St. Louis is an interesting case,” Muro said. “You are very strong in research and federal contracting, and there is the beginning of commercial activity.”
The region benefits from having large Fortune 500 companies as well as dynamic smaller companies like Benson Hill, which uses artificial intelligence and big data to improve crop breeding. St. Louis may not be at the cutting edge of AI research, Muro said, but it’s well positioned to apply that research in large markets such as agriculture, health care and geospatial sciences.
In recent years, nearly a dozen St. Louis area startups have raised money around business plans that include the use of artificial intelligence. They include Balto, which makes software that coaches call-center employees; Capacity, which helps companies answer help-desk questions; and PercayAI, whose software accelerates the discovery of new drugs.
Jason Hall, chief executive of Greater St. Louis Inc., sees those as evidence of the region’s potential. “You can literally look around the city at many headline-making young tech firms closely linked to AI,” he said. “From my perspective, they’re continuing to lean into the strengths we have in key verticals like ag tech, geospatial and financial services.”
Help may be on the way for cities that want to build up their AI infrastructure. The Innovation and Competition Act, passed by the Senate in July, contains $10 billion to seed new technology hubs around the country.
If that bill becomes law, it could present an opportunity for St. Louis. But, Muro said, the region would have to do “an unflinching assessment” to convince the federal government it could put the funds to good use.
In other words, wishful thinking won’t get us very far. Only regions with the research institutions, talent and capital to create a successful AI sector need apply.
Hall believes St. Louis has all of the above. Washington University, for instance, has an artificial intelligence collaboration across its computer science, medicine and social sciences faculties.
Hall was glad to see Brookings recognize the region’s potential. “We know from looking at the data, we’re not seeking to claim that we are the AI leader of the world,” he said. “But we can plant a flag.”