AI is becoming more prevalent in the workplace, with companies adapting the new technology to all types of work tasks. Companies may ask their employees to have AI perform everything from simple tasks like composing emails to more complex applications like data analysis and developing marketing strategies.
Several factors determine the likelihood that a company will adopt AI technology as part of its normal operations. For example, large companies use AI more than smaller companies. The adoption rate is 32.5% for businesses with 250 or more employees, while only 17.3% of workplaces in small businesses with 5-9 employees have it.
Where you live can also impact the rate of AI adoption, with businesses in certain states adopting new technologies more than others. But where is it most loved and where is it most hated? Visual Capitalist compiled data from the U.S. Census Bureau’s Business Trends and Outlook Survey (BTOS) to reveal where AI is most welcomed and marginalized in state business.
AI is on the rise in the West
Two states in the western United States top the list of states with the highest use of AI in businesses. In the survey conducted between January and March 2026, Colorado ranked first with 23.2% of businesses reporting the use of AI, followed by Arizona at 22.9%. The District of Columbia came in third at 22.5%, led by businesses operating near government agencies.
Western states of Oregon, Nevada, Utah, and Washington also ranked in the top 10 states with the most AI-friendly companies. Delaware and Maryland followed closely, perhaps due to their closeness to government work.
But how much AI does it take to get noticed? The study found that in each of the top 10 states, at least 20% of businesses in each state are leveraging AI in their workflows.
Introduction of AI is not always popular
Meanwhile, West Virginia leads the country with the lowest percentage of companies implementing AI in the workplace. Only 10.8% of West Virginia businesses surveyed admitted to using AI on a regular basis.
The states with the least AI adoption by West Virginia-based companies were followed by Arkansas, North Dakota, Oklahoma, and Iowa. Overall, the top 10 states with the lowest AI adoption rates were less than 15% per state. Louisiana came in 10th on the list, with only 14.5% of companies reporting the use of AI in their offices.
One reason for slower adoption may be that states with the lowest rates of AI use tend to have smaller companies on average, or are more heavily affiliated with agriculture and manufacturing, making them less likely to use AI.
AI Surprise: States Not in the Top 10 or Bottom 10
You may have noticed that some well-known states are not on either list, but you may be surprised by their rankings.
For example, California was close to the top 10 states with the most companies using AI, but only ranked 13th, even though several of the largest AI companies are based there. AI companies like OpenAI, Anthropic, and xAI are all headquartered in the San Francisco area.
Texas is trying to attract new technology companies, but it doesn’t seem to be making a big push into AI just yet. The state missed out on the top 10 with 19.8% of companies using AI for business functions. On the other hand, it may also be surprising that Texas is tied with Minnesota, which has the same recruiting rate.
For those lagging behind, New York was either the 38th-highest state or the 13th-lowest, depending on your point of view. Even though high-end technology is running investment firms and banks on Wall Street, other companies in the Empire State don’t seem to have much interest in implementing it yet.
