AI has become more popular in work settings, with businesses adapting the new technology to all kinds of work tasks. A company may ask workers to have AI do everything from simple tasks, like writing emails, to more complex applications, like analyzing data or developing a marketing strategy.

There are a few factors that may determine how likely a company is to adopt AI technology as part of its regular work, with larger companies, for example, using AI more than smaller ones. Businesses with more than 250 employees have an adoption rate of 32.5% compared to small companies with five to nine employees, which only use it in 17.3% of workplaces.

Where you live can also play a role in AI adoption rates, with companies in certain states embracing the new technology much more than others. But where is it getting the most love, and where has it been shunned the most? Visual Capitalist compiled data from the U.S. Census Bureau’s Business Trends and Outlook Survey (BTOS) to figure out just where AI has been welcomed the most in a state’s businesses and where it’s been left out.

AI Is Rising in the West

Two states in the western U.S. top the list of states where AI usage is highest for businesses. Colorado took first place with 23.2% of businesses reporting using AI in surveys conducted between January and March 2026, followed by Arizona at 22.9%. The District of Columbia came in third at 22.5% with help from businesses that work in close proximity to government agencies.

Western states Oregon, Nevada, Utah, and Washington also made the list of top 10 states with the most AI-friendly businesses. Delaware and Maryland followed closely behind, likely also due to their closeness to government work.

But how much AI adoption is enough to get noticed? For every state in the top 10, the study found that at least 20% of businesses in each state utilized AI in their workflows.

AI Adoption Isn’t Always Popular

On the other end of the list, West Virginia leads the country with the lowest percentage of businesses adopting AI at work. Of the West Virginian businesses surveyed, only 10.8% of them admitted to using AI regularly.

West Virginia was followed by Arkansas, North Dakota, Oklahoma, and Iowa for states with the least AI adoption by companies based there. Overall, the top 10 states with the lowest AI adoption rates stayed below 15% per state. Louisiana came in 10th on the list with only 14.5% of businesses reporting AI usage in their offices.

One reason for the lack of adoption may be that states with the least AI usage tend to have a smaller average headcount for their businesses or have heavier agriculture or manufacturing industries, which are less likely to use AI.

AI Surprise: The States That Didn’t Make the Top or Bottom 10

You may have noticed that some notable states didn’t make either list, and their rankings may surprise you.

California, for example, was close to the top 10 states with businesses that use AI, but came in at 13th despite some of the biggest AI companies calling California home. Headquarters for AI companies like OpenAI, Anthropic, and xAI are all in the San Francisco area.

Texas has been trying to attract new technology companies, but that doesn’t seem to have given it a huge AI boost yet. The state missed the top 10 with 19.8% of companies using AI for business functions. On the other hand, it might also be surprising that Texas is tied with Minnesota, which has the same adoption rate.

For laggers, New York was the 38th highest state, or 13th lowest state, depending on how you want to view it. Despite the high-end tech running investment firms and banks on Wall Street, other businesses in the Empire State don’t seem as interested in adopting the technology just yet.

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