SolutionsHire top legal talent for any scope of workGet Started Contact us to find the best fit for any in-house or law firm role Testimonials Trusted by the world's leading legal departments FAQ Frequently asked questions about working with Legal.ioEmployer Resources Tools and guides for hiring managers The current surge in technology, particularly in the field of generative AI, is creating a new kind of gold rush. However, the spoils of this boom are not evenly spread. In fact, they are highly concentrated.
According to a recent report by the Brookings Institution, 60% of new AI job postings are located in just 15 metropolitan areas. Nearly half of the generative AI job postings in the past year were in six cities: San Francisco, San Jose, New York, Los Angeles, Boston, and Seattle. This trend continues the pattern seen in AI jobs and R&D.
When we look at the Forbes AI 50 list, which showcases the most promising AI companies, we find that the 43 U.S. members come from just four states: California, New York, Texas, and Massachusetts. One company operates entirely remotely. Notably, none of the top 50 AI startups are located in the Rust Belt, the Midwest, or the South. San Francisco, the frontrunner of the cities listed, houses 20 of the best-funded AI companies, more than the rest of America combined.
Over recent decades, U.S. high-tech industries have become increasingly concentrated in coastal cities. More than 100 metro areas have the potential to be AI centers, yet just 14 metro areas account for more than half of AI R&D investment.
Axios reports Zoë Baird, Senior Counselor at the U.S. Department of Commerce, highlighted the importance of distributing AI skills across the country to make the CHIPS and Science Act work. She noted that “innovation takes place where manufacturing happens.”
The authors of the Brookings report, Mark Muro, Julian Jacobs, and Sifan Liu, suggest that a "widely distributed" expansion of public sector AI research and access to computing could help spread AI benefits away from "superstar cities." However, non-defense federal AI research spending remained at $1.7 billion in 2022.
While it's still early days in generative AI deployment, wider deployment and adoption across the economy are likely to spread at least some of the economic benefit. A National Artificial Intelligence Research Institutes program is now operating in 19 cities, helping to build up AI talent pools.
Beyond AI, there is a more widely distributed manufacturing boom underway in the U.S. South and West. This harks back to the 1960s "space race," a classic example of "place-based industrial policy," with federal investment transforming cities such as Huntsville, Alabama.
While the AI gold rush is currently concentrated in a few key areas, there is potential for a more distributed AI sector that could bring benefits to a wider range of locations.
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The EU, UK, U.S. and seven other nations have signed the first legally binding international treaty focused on AI.
The U.S. House of Representatives passed a bill that aims to create a new legal framework for digital currencies, despite an unusual warning from the SEC it could create new financial risks.
Despite the surge, legal counsel costs overall took up a smaller percentage of companies’ expenses, while in-house lawyers’ duties continued to broaden to reflect the business landscape’s current challenges.
US multinationals are restructuring their overseas holdings to bring foreign subsidiary ownership back to the US, delaying the impact of a newly established 15% global minimum tax.
Top firms set a new benchmark in the industry with significant salary increases.
The common threads woven throughout all of these changes include an increasing demand for employee flexibility and the use of legal technology tools.
Law firms pledge inclusivity as “21% of the workforce identifies as having a disability, but only 1.4% of lawyers do.”
Law firms are cutting back on summer associate hires, while boosting lateral partner recruitment to expand transactional services and capitalize on an economic rebound.
