The Search for AI Talent Could Realign Tech Markets

Thanks to the explosive popularity of generative AI chatbots such as ChatGPT, hiring for this particular skillset is more on the rise than ever before. But are firms concentrating on their usual hunting grounds for these people who are up on the latest technology needed to perform what humans have done? Or are they finding talent elsewhere? The answer is key because it could have a significant effect on both traditional and emerging tech hubs around the country. 

Results from CBRE’s report on Talent Insights from the second quarter of this year showed that AI talent is highly concentrated. One-third is in the top three primary markets and the remaining two-thirds are in the 10 largest markets.

The San Francisco Bay Area wins hands down as the top market with 60% more talent than the secondary market average. But what’s important for those seeking the talent is that the volume is increasing in nearly all U.S. markets, while much more established markets like San Francisco Bay and Seattle are experiencing slower growth rates. New York City has a relatively higher growth rate, and Texas and Florida have top AI talent growth rates, but their volumes remain comparatively small.

Where Talent is Emerging

 Certain regions should be closely followed since they offer rapidly growing talent pools that may surprise some. For example, three are not located on either Coast but in the Midwestern Heartland cities of Kansas City, Indianapolis and Cleveland. Besides the talent, they offer the benefit of more cost-efficient, less competitive hiring. 

Other areas that should be on the radar for those looking to hire are near a large research university with established AI education program since graduates can provide a strong pool of applicants to fill long-standing and newer job pipelines. Hubs near large employers may also provide ready talent as well as places that want to hire more talent. Such hubs can be found in Upstate New York such as Albany and Rochester and Midwestern markets like Columbus. For example, the semiconductor industry’s growth has contributed to the need for more talent.

Where Supply and Demand May Not Align

At the same time that it’s key to look for where talent may be found and where it may go, it’s also important to know which markets have lower talent acquisition and retention and fall into the category of greater risk. One measure of the hiring risk in a talent market is measured by the radio of supply versus demand. The San Francisco Bay Area has the largest AI talent pool and also high demand, giving it above average talent acquisition and retention risk.

Some smaller markets that reflect higher growth in the tech field include Austin and Nashville but are also considered riskier since demand has outpaced supply. Some larger markets like New York City, Seattle and Los Angeles have had lower demand so they’re in a better position to hire AI talent. And two cities with smaller AI talent pools for a better hiring risk profile include the emerging high growth markets of Orlando and Indianapolis.

How Gender Comes Into Play

Women are underrepresented in the AI field, and many companies look to hire more to even out the gender gap. The largest and most established markets such as San Francisco, New York City and Los Angeles have smaller AI gender gaps. Columbus has the smallest overall gender gap, attributable to a small number of large local employers. In contrast, Salt Lake City has the largest gap among medium to large markets, followed by Orlando, Minneapolis, Jacksonville and Las Vegas.