AOL co-founder and Revolution chairman and CEO Steve Case discussed the evolution of artificial intelligence (AI) and its regional impacts on CNBC’s “Squawk Box” recently. Reflecting on Microsoft’s recent $3 billion investment in an AI manufacturing facility in Wisconsin, Case said the move exemplifies AI’s transition beyond big tech.
“We’re seeing a transition from AI being really about the big horizontal platforms, the large long model centered in Silicon Valley to now more vertical AI, which creates an opportunity all around the country,” said Case. “How does AI impact manufacturing, the focus in Wisconsin or how does it impact agriculture, ag tech or health tech?”
Case argued that vertical AI integration across different industries opens the door for more geographically dispersed innovation hubs.
“It is not just the generalized platforms,” he said. “It is more specific ways, different industries can be reimagined and be more productive because of AI and that creates the opportunity for more regional innovation.”
However, Case acknowledged AI’s potential to reduce human workforce needs in certain roles.
“AI is going to be doing some of the basic work, including the basic work in coding, which will make the coders a little less valuable and the people [who] understand the core business problem in specific industries, whether it be healthcare, agriculture, other things, much more important,” he said.
Despite this disruption, Case maintained that regional tech hubs can still thrive by harnessing AI for local industry needs.
“We can’t just have AI be big tech getting bigger, we can’t just have AI being Silicon Valley continuing to be dominant,” he cautioned. “We need to figure out a way to have a more dispersed innovation economy, that follows with what made America great.”
Case’s perspective highlights how advanced AI capabilities are enabling a pivot from centralized tech giants to vertically-integrated, regionally-dispersed innovation customized for different sectors. This next phase could bring economic renewal by allowing underserved areas to become AI productivity powerhouses aligned with local business strengths.
