AI could power Pennsylvania’s next economic boom

Pennsylvania legislators are exploring artificial intelligence’s potential to revitalize the state economy in ways reminiscent of the steel industry’s historical impact. At a joint Republican policy committee hearing, experts highlighted how AI could transform healthcare delivery, enhance space exploration capabilities, and strengthen infrastructure safety while generating substantial tax revenue and jobs. With Pittsburgh already emerging as an AI hub—ranking eighth in AI patents and third in AI-trained workforce nationwide—lawmakers are navigating challenges around energy needs, permitting processes, and international competitiveness to position Pennsylvania as a leader in this transformative technology.

The big picture: Pennsylvania legislators are examining artificial intelligence as a potential economic driver comparable to the steel industry that once defined the state’s prosperity.

• “AI is the new steel,” declared Joanna Doven, executive director of the AI Strike Team, drawing a parallel between AI’s potential and steel’s historic role in defeating tyranny.
• The joint Republican state Senate and House policy committee hearing gathered experts to explore how AI development could boost the commonwealth’s economy and create jobs.

Regional success stories: AI is already generating significant economic benefits in America’s heartland, providing a blueprint for Pennsylvania.

• Tulsa, Oklahoma saw $1 billion in new annual tax revenue from a drone company, while Columbus, Ohio gained $191 million in local and state tax revenue from data centers.
• The Pittsburgh region received $1.87 billion in venture capital last year, ranks eighth in AI patents, and has the third-highest AI-trained workforce behind only Boston and Silicon Valley.

Industry applications: Experts highlighted AI’s transformative potential across multiple sectors including healthcare and space exploration.

• Dr. Hooman Rashidi emphasized AI’s ability to accelerate diagnosis, improve rural healthcare access, and enhance interdisciplinary medical decision-making.
• Dr. Andrew Horchler explained how AI enables autonomous spacecraft operations, supporting real-time decision-making, hazard avoidance, and data prioritization in space missions.

Infrastructure impacts: AI technologies are already improving safety and efficiency in Pennsylvania’s existing infrastructure.

• University of Pittsburgh researchers are using AI to prevent railway failures, demonstrating practical applications with immediate benefits.
• Investments in cyberinfrastructure could provide competitive advantages for the state’s economic development.

Challenges ahead: Lawmakers identified several obstacles that must be addressed to fully capitalize on AI opportunities.

• The growing AI industry requires substantial energy resources for data centers, prompting discussions about energy policy.
• Slow permitting processes and concerns about international competitiveness require policy solutions to ensure Pennsylvania remains competitive.

Why this matters: As Senator Dave Argall concluded, “Artificial intelligence is the future,” making strategic preparation essential for Pennsylvania to effectively harness this “world-changing technology” for economic growth and job creation.