As the home of Microsoft, Amazon, Nintendo and many other high-profile tech companies, it's only natural that Washington would be a hub for many AI startups. Yet, when Forbes released their Top 50 AI List in April of this year, no Washington-based company made the list.
This absence was noted and even criticized at Washington Tech Industry Association's Seattle AI Week. Governor Ferguson spoke, presenting an optimistic vision of AI’s opportunities while acknowledging the serious challenges it poses. He declared "There is no better place anywhere in the United States for this innovation than right here in the Northwest." It's an understandable sentiment based on Washington's rich history, but the current business climate in our state makes the claim debatable.
The previously referenced Forbes list, for instance, establishes multiple measures for AI companies to be considered for the top 50. According to their methodology, "Nominees are asked to provide both qualitative insights into aspects such as their business models, technical talent and how they’re building and using AI-enabled technology—as well as quantitative metrics including valuation, revenue and fundraising history."
One cannot help but wonder if the revenue side of things is what held up Washington from making the list. Companies like Data Blanket (AI-driven drones to help wildfire mapping and disaster response) and Goodship (AI optimization for freight shipping logistics) have clearly beneficial goals and impressive results. What could potentially be holding them back is the challenge of a state climate becoming increasingly hostile to businesses of all sizes, causing unnecessary financial risk. In the past decade, Washington has fallen from sixth-best to forty-fifth best in national business-climate rankings - and this year's latest budget includes an assortment of new taxes and regulations on business that very well may continue this downward trend.
If Governor Ferguson truly wants to promote responsible AI development, he must necessarily also address the broader challenges facing Washington’s business community. Right now, Washington's tax burdens seem intent on chasing away as many new businesses as they can. AI companies, being more mobile and nomadic than other businesses, will no doubt find relocation to friendlier environments less painful than enduring Washington’s regulatory and tax burdens. Washington's heritage of tech startups may be strong, but continued pressure on innovators risks killing the goose that laid the golden egg.