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Texas is leading – and the nation is paying attention. For the third consecutive year, Business Facilities has named Texas the Best Business Climate in America. To build on this momentum and scale our success even further, our businesses should embrace every transformative innovation that the 21st century marketplace offers, including artificial intelligence (AI).

A new economic study released by TAB this week demonstrated the immense potential for new technology – and AI in particular – to serve as a force multiplier for economic output in Texas’ fast-growing communities. The study – conducted by Prestige Economics – projects that by 2050, Collin County alone will generate more than $360 billion in real Gross Domestic Product (GDP) – nearly three times the size of Oklahoma’s 2024 GDP and near Missouri’s 2024 GDP. This extraordinary growth positions Collin County to contribute 10% of Texas’ total economic output and 7% of our workforce, driving a powerful combination of population expansion, high-skilled talent and a thriving technology ecosystem that will reinforce Texas’ competitive edge on the national stage.

This new study confirms what we’re already seeing: Texas isn’t just in the tech race – we’re setting the pace. In fact, the number of technology workers is expected to rise 7% through 2050, with the sector’s real economic impact projected to soar by 361%. Technology drives growth across every industry, and it’s critical we ensure Texas businesses – particularly small and medium-sized enterprises – have the tools to harness AI, scale efficiently and stay competitive in a rapidly evolving global economy.

New survey data released by the Federal Reserve Bank of Dallas this week reinforces AI’s growing role in Texas businesses and its critical importance amid rising uncertainty surrounding the impact of tariffs. The report shows that Texas businesses using AI jumped from 20% in April 2024 to 36% in May 2025 – with AI adoption quickly becoming a strategic necessity to mitigate costs, streamline operations and remain competitive in today’s business climate:

Dallas Fed survey responses over the past year have shown an increase in AI usage among Texas businesses. Adoption of generative AI, which is broadly defined as a form of AI that autonomously generates new content, has been particularly notable. By comparison, traditional AI is explicitly programmed to perform specific tasks. In May, 59.1 percent of Texas Business Outlook Survey (TBOS) respondents reported using either generative or traditional AI, a nearly 21-percentage-point jump from 38.3 percent in April 2024.

Federal Reserve Bank of Dallas, July 17, 2025

Recently, I joined the Richardson Chamber of Commerce and Google to host a free “Make AI Work For You” workshop – an interactive, first-of-its-kind event that drew a packed house of more than 50 local small business leaders in another rapidly growing North Texas community. The message was clear: AI is a tool of empowerment, allowing start-ups and entrepreneurs to scale, streamline operations and sharpen their competitive edge.

As Richardson Mayor Amir Omar affirmed during the workshop: “AI is a way we can begin to look at breaking boundaries as small businesses.”

Coming on the heels of landmark policy for innovation – HB 149, authored by Rep. Giovanni Capriglione and recently signed into law by Governor Greg Abbott – this workshop could not have been more timely. The legislation establishes the Texas Responsible Artificial Intelligence Governance Act, ensuring that Texas is at the forefront of responsible and innovative AI adoption that protects citizens while empowering businesses to grow unimpeded.

It’s sound, pro-business policy that allows for opportunities like these to arise, and thankfully, Texas lawmakers have been cultivating this environment through a combination of investments in education, workforce development, and energy infrastructure.

As the Dallas Morning News reported this week, all of these factors are at play in the explosive growth we’re seeing in Collin County – which serves as a microcosm for other booming communities across Texas:

The Lone Star State already benefits from a strong labor force and a growth trajectory that’s made the state economy the envy of other states across the country.

Yet in the case of Collin County, an abundance of skilled workers, combined with an influx of people, capital and technology are all projected to amplify the boom effect, the organization added — ramping up Collin County’s status “not just as a contributor, but as a strategic driver of statewide economic momentum.”

Technology is a force multiplier for the area’s growth, primarily exemplified by the explosive growth in data centers throughout North Texas.

State funding, along with more rigorous curricula being offered by the area’s colleges and universities, are helping to create the workforce that Collin County and its neighbors will need in the future.

“You talk to employers throughout Texas, and it’s not really just North Texas, and they will say, because of the explosion of data centers and artificial intelligence activity in Texas that yes, to build these data centers, we need a lot of electricians, machinists,” Hamer added.

“There’s a premium today on skilled labor.”

Dallas Morning News, July 17, 2025

In addition to the Richardson AI workshop, TAB is partnering with the Frisco Chamber of Commerce to host a “Grow with Google” workshop on July 29th, focused on helping local businesses enhance website visibility and expand advertising reach through Google platforms. It’s another important step in ensuring that Texas entrepreneurs stay ahead of the curve and harness the transformative power of AI and digital innovation.

These workshops show that AI is another frontier where Texas is breaking new ground. AI literacy is rapidly becoming a prerequisite in the modern school of business. Those who tap into its vast capabilities, from predictive analytics to automation and intelligent customer engagement, won’t just keep up – they will lead the charge, drive breakthroughs and shape the future of Texas’ thriving business community.

– Glenn Hamer, President & CEO, Texas Association of Business

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