LA Is Emerging As an 'Early Adopter' of Artificial Intelligence, Brookings Finds

Sarah Favot

Favot is an award-winning journalist and adjunct instructor at USC's Annenberg School for Communication and Journalism. She previously was an investigative and data reporter at national education news site The 74 and local news site LA School Report. She's also worked at the Los Angeles Daily News. She was a Livingston Award finalist in 2011 and holds a Master's degree in journalism from Boston University and BA from the University of Windsor in Ontario, Canada.

LA Is Emerging As an 'Early Adopter' of Artificial Intelligence, Brookings Finds

Artificial intelligence isn't only used to develop robots that flip hamburgers or lift boxes in a warehouse; it has permeated our daily lives. Netflix's algorithms predict what movies or TV shows we want to watch. Instagram serves up ads based on AI.

A new Brookings Institution report shows just how much it's become part of the fabric for Angelenos.


The Institution studied hundreds of metropolitan cities to evaluate their AI strength when it comes to research and how local businesses have adopted AI technology. Los Angeles landed among the top cities in the nation.

While the Bay Area dominates and is considered a "superstar," Mark Muro, senior fellow for the Metropolitan Policy Program at Brookings, said L.A.'s status when it comes to AI was a surprising finding of his research.

"L.A. looks pretty formidable in that early adopter tier," Muro said. "It's not the Bay Area, but it looks very competitive with especially strong representation in commercial industry work in terms of company representation, job postings. It looks very, very strong."

A quarter to a third of all AI activity in the U.S. is concentrated in San Francisco and San Jose, Muro said. Seattle, San Diego, Boston, New York City and Washington, D.C. rank above Los Angeles with major universities conducting a substantial amount of research and tech companies like Amazon, Microsoft and Google. Austin, Texas and Boulder, Colorado also rank above L.A.

L.A. companies outside of the traditional tech sector like Deloitte, Disney and Anthem ranked at the top when it comes to their adoption of AI, in addition to tech companies like Oracle, IBM and CrowdStrike.

"It may be that the biggest impacts in employment come from AI used by big companies or small companies in big industries," Muro said. "I think that's part of the special mix in L.A."

The COVID-19 pandemic has also increased the use of AI to replace some service sector jobs.

Joseph Fuller, an AI consultant and professor of management practice at Harvard Business School said that the pandemic has fueled AI's growth.

"It was already happening and it's accelerating. Suddenly [companies] had to do it, it was the only way to serve customers," Fuller said. "With more remote work, we had to be able to spread data and decisions and communicate more effectively."

The research found that AI is increasingly viewed as the next great "general purpose technologies" that has the power to transform many sectors of the economy and can spur economic growth through increased productivity and reduced costs.

While AI job postings have quadrupled in the past decade, Muro found, just 3% of all U.S. firms have adopted AI applications in 2018.

PricewaterhouseCoopers estimates AI's possible $3.7 trillion contribution to GDP in North America by 2030, the report noted.

Muro said Brookings undertook this research because it received a lot of inquiries from regional business leaders and economic development and tech people about the importance of AI.

He evaluated 384 metro areas and ranked them as early adopters, (the tier that holds L.A.), federal research and contracting centers, and potential adoption centers. There were 261 "others." The San Francisco Bay Area was its own category.

The goal of the report is not to spur cities that aren't as advanced into action, but to help them to first assess their positioning and then consider acting.

The report also discusses whether AI is going to be a "winner-take-most" industry or more spread out. Are these metro areas where there is a large concentration of AI research and commercialization going to dominate or do cities like L.A. and others stand a competitive chance?

Muro thinks it's early in the nascent industry and there's opportunities for L.A. to insert itself among the top echelon.

But, he warned, companies must be careful. Even as more and more industries are adopting the technology of the future to speed up processes or add efficiencies, there is a dark side. Biased algorithms used by mortgage companies reportedly denies applications from people of color in larger numbers. Facial recognition technology used by police can more frequently misidentifies people of color. And a recent incident involving Facebook's algorithms labeled people as primates.

Part of the problem is the tech companies in the Bay area have largely employed white programmers and coders that impose their worldview on the software. That's where L.A. has an advantage.

"A diverse, broadly distributed industry will likely develop fairer, more ethical products if it's developed in more places, and not just in the homogeneous Bay Area environment," Muro said. "The homogeneity of the Bay Area AI development community is a problem. Having more research and adoption conducted in more places, and in cities with greater diversity, will be important. "

"L.A. has got to make sure that more of its Black and Brown workers are at the forefront of technology."

Muro pointed to an article from the Stanford Institute for Human-Centered Artificial Intelligence that found if it's not, AI will lead to "greater concentrations of wealth and power for the elite few who usher in the new age—and poverty and powerlessness...for the global majority,"

In other words, AI has a risk of allowing the powerful to become more powerful and the rich to get richer.

"These technologies do seem to spawn economic divides within places because they're very well paid," Muro said.

Reporter Samson Amore contributed to this report.

LA’s Data Center Supply Crunch

🔦 Spotlight

Happy Friday Los Angeles!

The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.


🤝 Venture Deals

LA Companies

  • Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more

LA Venture Funds


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    🌐Decentralizing Data & Vacations: Sony's Web3 Leap and Sensible Weather's KOA Partnership

    🔦 Spotlight

    Happy Long Weekend Los Angeles!

    Sony Group is making a significant push into the blockchain and Web3 space, leveraging its Sony Pictures and Sony Music divisions along with a new global incubator. The company has developed the Soneium blockchain through Sony Block Solutions Labs, a joint venture aimed at accelerating Web3 innovation. Sony is launching the "Soneium Minato" public testnet and a developer incubation program called "Soneium Spark" to foster ecosystem growth and adoption. The initiative includes strategic partnerships with Web3 companies such as Astar Network, Circle, and Optimism. Sony aims to create a fan community centered on creators and connect diverse values through Soneium, with the ultimate goal of integrating Web3 services into people's daily lives. While the company acknowledges the challenges faced by Web3, including limited user adoption and the need for mainstream use cases, it remains committed to decentralizing the concentrated power of the current internet landscape.

    In completely unrelated and more digestible news Sensible Weather, a leading weather protection provider that we’ve featured many times, has partnered with Kampgrounds of America (KOA) to offer Weather Guarantees at over 450 KOA Campgrounds across the United States. This collaboration allows campers to purchase weather protection for their outdoor experiences, providing peace of mind and potential reimbursements of up to 100% of their nightly rate if weather conditions exceed predefined parameters. The partnership comes at an opportune time, as camping has seen a significant increase in popularity, with active campers growing by 68% over the past decade. If you are looking to do some camping this fall make sure you look into Sensible Weather protections to ensure that unpredictable weather won't dampen (nailed it) your camping experience.


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    LA Companies

    • Space and Time, a blockchain data warehouse developer, raised a $20M Series A led by Framework Ventures. - learn more
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    • Fika Ventures led a $4.55M Seed Round for Revenew, a San Francisco startup that aims to help digital platforms and marketplaces manage their payments and optimize financial operations. - learn more
    • Bonfire Ventures participated in a $25M Series A for Supio, an AI platform for personal injury law firms. - learn more
    • Amplify LA participated in a $2M Seed Round for Pryzm, a startup that provides tools and data to help businesses navigate government contracting more efficiently. - learn more

      ✨ Featured Event ✨

      LA TECH CEO SUMMIT

      LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

      Learn More Here

      Register Here


      Download the dot.LA App

      Personality Assessments Improving Workplace Dynamics

      Misunderstandings can have significant and sometimes severe impacts, far beyond the hilarious cake pictured above. Many organizations are increasingly using personality assessments to improve team dynamics and productivity. Tests like the Enneagram, Myers-Briggs Type Indicator (MBTI), and DISC assessment are valuable tools for developing existing teams in addition to hiring new employees. These assessments provide insights into team members' motivations, communication styles, and work preferences, helping colleagues understand each other better. By highlighting the different personalities within a team, these tests can enhance communication, resolve conflicts, and optimize task assignments based on individual strengths. As companies aim for greater efficiency and collaboration, the Enneagram, MBTI, and DISC assessments are becoming essential for transforming established teams into more effective and cohesive units.


      Image Source: iEQ9

      Enneagram

      The Enneagram test is a sophisticated personality assessment that categorizes individuals into nine distinct personality types, each defined by unique motivations, fears,and behavioral patterns. This holistic approach enhances team dynamics in a business setting by fostering self-awareness, improving communication, and facilitating conflict resolution among team members. By understanding different personality types, teams can optimize their composition, tailor professional development, and create a more empathetic and collaborative environment. This framework not only helps leaders adapt their styles to better support diverse team members but also promotes inclusivity and effective collaboration, ultimately leading to improved team performance, productivity, and retention.

      Resources:iEQ9. We recommend getting an Enneagram coach to get the most out of the results.

      Key Features: Focus on core motivations. Accounts for personality shifts under stress or growth. Offers practical, actionable guidance for personal growth. Uses a dynamic, adaptive questioning approach. Claims 95% accuracy rate through advanced techniques.


      Image Source: DiSC Profile

      DiSC (Dominance, Influence, Steadiness, and Conscientiousness)

      The DiSC assessment is a widely used behavioral analysis tool that categorizes individuals into four primary personality types: Dominance, Influence, Steadiness, and Conscientiousness. For businesses, DiSC provides valuable insights into employees' communication styles, work preferences, and motivations. By understanding these behavioral tendencies, teams can improve collaboration, reduce conflicts, and enhance overall productivity. Implementing DiSC in a business setting can lead to more effective leadership, tailored communication strategies, and optimized task allocation based on individual strengths.

      Resources:DiSC Profile.

      Key Features: Designed specifically for workplace applications. Focuses on observable behaviors rather than psychological traits. Widely researched and validated over 40+ years. Provides practical strategies for improving interactions.


      Image Source: The Myers-Briggs Company

      The Myers-Briggs Type Indicator (MBTI)

      The Myers-Briggs Type Indicator (MBTI) is a widely used personality assessment tool that categorizes individuals into 16 distinct personality types based on four dichotomies: Extraversion/Introversion, Sensing/Intuition, Thinking/Feeling, and Judging/Perceiving. For businesses, the MBTI provides valuable insights into employees' communication styles, decision-making processes, and work preferences.This helps promote a more productive workplace, and enables employees to become involved in more meaningful ways, all while leveraging everyone’s unique strengths.

      Resources:The Myers-Briggs Company.

      Key Features: Focuses on preferences rather than traits. Focuses on how people perceive and judge information. Widely used in business and career counseling


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