A New report Exploring the potential for the Pacific Northwest to stake a claim as a world leader in responsible AI presents a paradoxical perspective. The Cascadia region, which includes Seattle, Portland and Vancouver, B.C., has been described as a proven, promising player in the field — but there are significant risks that threaten its success.
“We’ve built companies that have transformed world trade,” former Gov. Chris Gregoire wrote in the front of the document. “Now we have the opportunity to add another chapter – one where Cascadia becomes the world’s standard-bearer for innovation that improves both people and the planet.”
D Cascadia Innovation CorridorWhich Gregoire presided over, released the report this morning as it kicked off its two-day conference. The economic advocacy group’s eighth annual event is being held in Seattle.
Cascadia’s AI paradox
The study is based on an analysis by Boston Consulting Group that ranks Cascadia’s three metro areas against 15 comparable areas in the United States and Canada for their economic competitiveness, including their livability, workforce, and climate for business and innovation. Seattle came in fourth behind Boston, Austin and Raleigh, while Portland was 13th and Vancouver 14th.
Over the past decade, both the region’s gross domestic product and population have grown significantly, and when combined, their economies have reached the 18th largest in the world.
Cascadia’s strengths, the report explains, include technology engines like cloud giants Microsoft and Amazon in Washington, silicon chip manufacturing in Oregon, and quantum innovation in Vancouver, as well as academic excellence at the University of Washington, University of British Columbia and Oregon State University.
But as time passes and business and civic leaders aim for the rewards of AI dominance, cracks in the system are increasingly problematic.
- Business costs are rising and regulatory concerns are rising – but it’s a tricky picture. Seattle, for example, often turns to B&O and headcount taxes to cover costs, while the state struggles to balance the budget in the absence of an income tax.
- Housing affordability continues to decline for many residents in this metro area.
- Skilled tech workers are leaving Portland, in particular, and Seattle relies heavily on foreign workers receiving H1-B visas, which are less guaranteed under the Trump administration.
- The once-abundant supply of clean, affordable energy in the Pacific Northwest is dwindling as drought reduces river flows that power hydroelectric dams and demand for electricity increases with rapid data center growth.
The report notes that multiple regions around the US and Canada have created AI-focused hubs with tens of millions of dollars in public and private funding to strengthen their hold on the sector.
New Jersey has a half-billion-dollar “AI Moonshot” program that includes tax incentives and public-worker AI training programs; New York’s “Empire AI Consortium” has an AI computing training center at the University of Buffalo and supports startups; And California has a public-private task force to increase AI adoption in public services and connect technology leaders with state agencies.
For its part, Seattle Mayor Bruce Harrell announced a “Responsible AI Plan” this fall that provides guidance for the municipality’s use of artificial intelligence and support for the AI technology sector as an economic driver, including previous launches of startup-focused AI Houses and Foundations.
But what the region really needs to succeed is a collaborative effort to tap into all of the metro area’s resources.
“For Cascadia, the lesson is clear: Without a cohesive strategy that combines our strengths in cloud computing, semiconductors and research, we risk falling behind,” the Cascadia Innovation Corridor report said. “By acting together, we can help Cascadia not only keep pace, but lead.”