Opportunity in Competition: States and Universities Vie for AI Leadership

With the increasing prominence of artificial intelligence and machine learning (AI/ML), numerous state governments are creating taskforces on AI to help determine their state’s AI strategy. Less talked about, however, is the fact that several of these same states are also establishing programs intended to bolster their state’s role in AI research and development. States such as New Jersey, New York and Oklahoma have all either established organizations, usually in partnership with one or more universities intended to propel their state into AI leadership, or started laying the groundwork to do so.

State AI Hubs

One of the more common strategies implemented by states vying to become AI leaders is establishing a hub for AI research and development. New York’s recently established Empire AI consortium, tasked with making the state a major player in AI, was appropriated $275 million in New York’s FY25 budget to establish an artificial intelligence computing center at the University of Buffalo. Likewise, the New Jersey Economic Development Authority, in partnership with Princeton University, recently released a Request for Information seeking input into a planned AI Hub. These types of centers promise to offer computing power to academic researchers, small businesses, and other stakeholders within their states access to similar computing power for their AI applications that larger companies have access to. These computing centers will require high-powered computing resources and the IT infrastructure needed to connect to and run the various AI-based applications the third-party organizations intend to run on them.

University Impacts

Of course, many state universities are developing AI leadership centers with less state government support than that seen in states like New Jersey and New York, and many universities, instead of attempting to propel their state into an AI leadership position, are striving simply to establish their credentials in AI research and education. The University of Kentucky, for instance, has founded a Hub for Artificial Intelligence and Machine Learning whose leadership team consists of experts from the university’s College of Arts and Sciences, Pigman College of Engineering, and Gatton College of Businesses and Economics. As universities increasingly look to make a name for themselves in AI, expect to see opportunities related to AI computing center infrastructure, data pipeline solutions, and AI-powered models and research tools.

Suffice to say, state governments and universities are looking to AI for more than just regulatory purposes and efficiency improvements. As a growing focus amongst the public sector, numerous states see AI as a potential area to establish themselves as leaders in this growing technology and reap the economic rewards that come with such a role. And numerous universities see AI as a powerful attractor for future students and an area to grow their academic prestige. State and university efforts to become big names in AI means plenty of opportunities for IT companies.

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About the Author:
Gabriel Zighelboim, Market Insights Data Analyst at TD SYNNEX Public Sector, specializes in analyzing government IT procurement data to deliver actionable insights to vendors and resellers in the public sector.