Greater Boston lags many large U.S. metros in capturing new tech industry growth, according to a new brokerage analysis.
The region ranks seventh nationwide in its potential to attract growth of the artificial intelligence industry, according to CBRE’s Scoring Tech Talent report issued this week.
The San Francisco Bay area has a strong lead over other U.S. markets, with over 61,000 tech workers with AI skills, CBRE reported, giving it an advantage in attracting business growth and demand for office space.
Despite the shift toward hybrid workplace policies, the industry has the potential to be a significant driver of leasing demand, CBRE said. Since 2020, the tech industry has been the top driver of office leasing in the U.S., adding 823,000 jobs.
But Boston’s overall tech job pool has remained relatively stagnant in recent years, increasing 1.5 percent between 2018 to 2023 to approximately 170,000 jobs.
And the short-term outlook shows Boston lagging many competing metros, including San Francisco, Seattle and New York. CBRE’s tech talent scorecard ranked Boston seventh based upon 13 metrics, including the concentration of tech talent with AI skills.
AI jobs comprise approximately 14 percent of job postings in the tech industry, and the AI sector accounts for more than 285,000 jobs nationwide.
“Increased demand for specialized skill sets in artificial intelligence has fueled tech talent job growth across all sectors,” CBRE Tech Insights Center Executive Director Colin Yasukochi said in a statement.
The AI industry is gravitating toward markets where higher education offers AI programs, along with the strength of the local talent pool, the report stated.
The report used U.S. Census and self-reported LinkedIn data to analyze 75 U.S. metros.