The States That Are Winning — And Losing — The Race To Dominate AI

Brainly

A new report from Brainly ranks all 50 U.S. states and Washington, D.C., on their preparedness for an economy increasingly driven by artificial intelligence. The “AI Readiness Index,” released in July 2025, uses a range of metrics to assess each state’s capacity to develop, adopt, and sustain AI-related innovation. These include the share of AI-intensive jobs, the rate of AI-related degree production, infrastructure availability, government funding, and the extent to which businesses are already using AI technologies.

Washington, D.C., ranks first overall in the index. According to Brainly’s findings, more than 22% of businesses in the district currently use AI — the highest adoption rate in the country. D.C. also leads in workforce density, with 41 AI-intensive jobs per 1,000 workers. These jobs include positions in data science, machine learning, natural language processing, and other AI-related specializations. The combination of federal agencies, research institutions, and private sector firms contributes to the region’s leading position in the rankings.

Several other states scored highly on the index, including Utah, Massachusetts, Maryland, and New Hampshire. Utah ranks third overall, driven by strong educational pipelines, a growing tech sector, and a high concentration of AI employment relative to population size. Massachusetts and Maryland benefit from the presence of research universities, federal research labs, and established tech hubs. New Hampshire stands out in one specific category: degree production. According to the report, the state awards 314 AI-related degrees per 10,000 young adults — a national high.

IOWA, TENNESSEE RANK NEAR BOTTOM

Brainly defines AI-related degrees broadly, including programs in data science, computer science, statistics, and related engineering fields. These degrees serve as a proxy for the future availability of talent in AI and adjacent sectors. The report notes wide variation in degree production across states. For example, Alaska, which ranks last overall, produces just 12 AI-related degrees per 10,000 young adults — more than 25 times fewer than New Hampshire.

The report also identifies several states that are underperforming in AI readiness across multiple indicators. Alaska, West Virginia, and Maine occupy the bottom three positions in the overall rankings. These states show low levels of AI workforce participation, minimal degree output in relevant fields, and limited infrastructure for technology development.

Iowa ranks near the bottom as well, with low access to federal funding for small businesses engaged in tech and minimal growth in AI-related jobs. Tennessee is also among the least-prepared states, with weak educational output in AI disciplines and a small percentage of businesses reporting AI adoption.

A SNAPSHOT OF WHERE STATES STAND

Brainly’s analysis draws on publicly available datasets from the U.S. Census Bureau, the Bureau of Labor Statistics, and the National Center for Science and Engineering Statistics, among other sources. The organization calculated composite scores for each state based on the five primary categories: job availability, business adoption, degree output, infrastructure, and public funding.

According to the report, national variation in AI readiness is shaped by differences in state-level policy, education systems, research investment, and business ecosystem maturity. While some states are producing high numbers of AI-related degrees and attracting talent, others are lagging behind in both education and employment opportunities. The rankings provide a snapshot of where states currently stand as the AI economy expands across sectors ranging from healthcare and logistics to finance and manufacturing.

The full AI Readiness Index is available at Brainly.com.

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