As communities across America struggle economically, more disruption can be expected from artificial intelligence’s elimination of jobs. How then can local economic developers stimulate growth and combat the upcoming job losses? New data reveals an approach that can reinvigorate local economies nationwide.
The specific challenge to business and job creation is underscored by entrepreneur and investor Donna Harris, who recently highlighted the possibility of AI replacing not only workers but also tech startups that would otherwise grow in AI soil. “The platform isn’t just sitting underneath the startups anymore,” Harris writes. “It’s learning to do what they do.” In other words, AI can consume entire digital business sectors.
In the face of all of this, how then can local economic development respond? By focusing on starting and growing small businesses that fabricate physical products locally — ranging from artisan crafts and food products to hardware innovations and advanced components for the defense industry — and connecting these small-scale manufacturers to sustainable growth opportunities.