The Brookings Institution released a new report that gives Milwaukee’s tech ecosystem a major nod. In the report titled, Mapping the AI Economy: Which Regions Are Ready for the Next Technology Leap? Brookings explores which U.S. metro areas are best positioned to thrive in the age of artificial intelligence. 

While West Coast giants like San Francisco still dominate, the real story is how cities like Milwaukee and Madison are climbing the ranks.

Milwaukee: A Nascent Hub on the Rise

Milwaukee is officially recognized as a “Nascent Hub” in Brookings’ AI economy report – a category for regions showing early promise in adoption, innovation, and workforce development. According to the authors, Mark Muro and Shriya Methkupally, cities in this tier are “making gains” in AI usage across industries but still need to boost innovation capacity and talent density.

Yet, Milwaukee is outpacing other Midwest cities like Chicago and Minneapolis in AI adoption. That’s no small feat – and a sign that the region is turning the page on what the future of work and innovation looks like in Wisconsin.

More than half of U.S. metro areas were in the bottom two tiers, suggesting “significant shortfalls in talent pipelines, research infrastructure, and enterprise adoption.”

Why It Matters: AI is Fueling the Next Wave of Economic Growth

Brookings found that since 2020, AI job postings have doubled nationwide. But most of that opportunity is still concentrated, with just 30 metro areas accounting for 67% of all AI job listings. These include well-known hubs like Seattle, Austin, and Washington D.C.

Milwaukee is one of the few in the Rust Belt making meaningful moves to join that group.

But here’s where the opportunity lies: While “Star” and “Emerging” hubs may have more talent and R&D strength, AI adoption rates are surprisingly similar across tiers. This means nascent hubs like Milwaukee can stay competitive with investments in the right areas – especially workforce development and innovation infrastructure.

“While the Bay Area’s dominance isn’t going down, we see other places rising up the ranks,” says Shriya Methkupally, senior research assistant at Brookings Metro.

Wisconsin’s AI Trajectory: What’s Driving Growth?

Wisconsin has seen notable progress since Brookings’ previous AI report in 2021. Here’s what’s working:

• • Madison has been named an Emerging Hub, driven by strong innovation scores and high-performance computing (HPC) research.
  • Milwaukee continues to advance thanks to major players like:
    • Milwaukee School of Engineering’s Dwight and Dian Diercks Computational Science Hall
    • Northwestern Mutual Data Science Institute (a joint effort between UW-Milwaukee and Marquette University).

• Microsoft announced a $3.3 billion investment in Wisconsin to build a major cloud and AI infrastructure project, including a state-of-the-art data center campus, a manufacturing-focused AI co-innovation lab, and an AI skilling initiative to train over 100,000 residents and develop the region’s next generation of tech talent.

• • Milwaukee Tech Hub supports a thriving AI community, offering free resources and programs for startups, established businesses, students, and anyone looking to upskill in AI.
  • Choose MKE Tech maintains a calendar of monthly tech events, including AI-focused talks designed for learning, networking, and staying up to date on the latest advancements. 

These public–private partnerships are creating a strong foundation for local AI talent, research, and enterprise adoption.

Build Talent, Boost Innovation 

Brookings emphasizes that nascent hubs need support to compete globally. Their top recommendations include:

• Invest in AI talent pipelines
• Share AI capabilities and best practices across regions
  Increase federal and state support for emerging tech centers

That last point matters. As the report notes, global competition  (especially from fast-moving economies like China) makes U.S. regional investment more urgent than ever.

The Role of SMBs in Wisconsin’s AI Story 

Wisconsin’s economy is fueled by small and mid-sized businesses (SMBs), particularly in manufacturing, distribution, and construction. Yet, Brookings notes that SMBs are adopting AI at half the rate of larger enterprises – a key area for future growth.

Milwaukee and Wisconsin, as a whole, have a huge opportunity to accelerate AI adoption in these industries. We’ll not only future-proof our economy but also gain a competitive edge.

The Takeaway: Milwaukee Has Momentum – Let’s Build on It

Milwaukee is on the map as a growing hub for AI – and Brookings just validated that momentum. With the right focus on talent, infrastructure, and cross-industry adoption, Milwaukee will continue to thrive as a leading tech city in the Midwest.

For those wondering if Milwaukee is the right place to build, hire, or innovate – the data is speaking. The AI economy is growing here. Now’s the time to choose MKE.

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The Brookings Institution is a leading nonpartisan think tank known for its influential research that shapes policy on economic and tech issues. Read the full report here.