Artificial intelligence (AI) has significantly permeated work settings, with businesses increasingly integrating this new technology into a diverse range of tasks. Companies are leveraging AI for everything from automating simple administrative duties, such as drafting emails, to executing more sophisticated applications, including in-depth data analysis and the development of comprehensive marketing strategies. The propensity of a company to adopt AI technology as a regular component of its operations is influenced by several factors, prominently including company size and geographical location.

Data indicates a clear disparity in AI adoption rates based on company size. Larger businesses, specifically those employing more than 250 individuals, demonstrate a robust adoption rate of 32.5%. This contrasts sharply with smaller companies, characterized by five to nine employees, where AI is utilized in only 17.3% of workplaces. This suggests that larger organizations, likely possessing greater resources and more complex operational needs, are more inclined to embrace AI solutions.

Geographic location also plays a pivotal role in the rates of AI adoption across the United States. To pinpoint where AI is most and least embraced by businesses, Visual Capitalist compiled and analyzed data from the U.S. Census Bureau’s Business Trends and Outlook Survey (BTOS). The findings reveal distinct regional patterns in AI integration.

The Western U.S. stands out as a leader in AI adoption, with two states from this region topping the list. Colorado holds the first position, with 23.2% of businesses reporting AI usage in surveys conducted between January and March 2026. Arizona follows closely in second place at 22.9%. The District of Columbia secured the third spot with 22.5% adoption, a figure attributed partly to businesses operating in proximity to government agencies. Other Western states, including Oregon, Nevada, Utah, and Washington, also featured in the top 10 states with the most AI-friendly businesses. Delaware and Maryland also ranked high, potentially due to their close ties to government work. Significantly, for all states in the top 10, at least 20% of businesses actively utilized AI in their workflows, indicating a strong commitment to technological integration.

Conversely, certain states exhibit considerably lower rates of AI adoption. West Virginia leads the country in this category, with a mere 10.8% of surveyed businesses reporting regular AI use. Following West Virginia are Arkansas, North Dakota, Oklahoma, and Iowa, all showing minimal AI integration. The top 10 states with the lowest AI adoption rates generally stayed below the 15% threshold per state, with Louisiana ranking tenth at 14.5% of businesses utilizing AI. The limited adoption in these regions may be attributed to several factors, such as a smaller average employee headcount within businesses or a prevalence of industries like agriculture and manufacturing, which historically have been slower to incorporate AI technology.

Interestingly, some prominent states did not appear in either the top or bottom 10 lists, and their rankings might come as a surprise. California, despite being the home to numerous leading AI companies such as OpenAI, Anthropic, and xAI in the San Francisco area, ranked 13th, just outside the top 10 in business AI adoption. Similarly, Texas, which has actively pursued attracting new technology companies, did not see a significant AI boost, missing the top 10 with 19.8% of companies using AI for business functions. This rate places Texas in a tie with Minnesota, highlighting that even states with strong tech aspirations or a significant tech presence do not automatically translate into widespread business AI adoption across all sectors.