Steve Rao: The AI revolution must include Main Street

Throughout my years in public service, economic development and technology advocacy, I have believed that North Carolina's greatest strength is our ability to bring people together around big ideas.

This energetic spirit created Research Triangle Park more than six decades ago. Visionary leaders such as the late Governor James B. Hunt built upon the foundation established by the state's early innovators and championed a long-term vision that transformed North Carolina from a largely agricultural economy into a global center of innovation. Their leadership helped attract world-class companies, universities, entrepreneurs and talent. Today, we stand at another transformational moment: the rise of artificial intelligence.

North Carolina has an opportunity not just to participate in the AI revolution, but to lead it.

We already know that AI is transforming our economy every day. Countless conferences, summits, podcasts and panel discussions remind us of this fact almost daily. At some point, however, the conversation must move beyond simply talking about AI and toward helping businesses, entrepreneurs, and workers harness its benefits in practical and meaningful ways.

The real question we should be focused on is whether small businesses and entrepreneurs will be empowered to benefit from this transformation, or whether the advantages will accrue only to the largest organizations.

For years, I have written about the importance of supporting small businesses, which remain the backbone of North Carolina's economy. From our downtown retailers and family-owned manufacturers to professional service firms, restaurants, startups and emerging technology companies, small businesses create jobs, strengthen communities and drive economic growth.

All the more reason I am inspired by the launch of RDU Labs a few weeks ago.

A few weeks ago, I had the opportunity to sit down with RDU Labs co-founder Mark Bavisotto at NC Tech Association's Tech Fest in Durham. We continued our conversation during a recent Radio Nyra interview, I came away impressed by the practical vision behind RDU Labs. Their mission is simple but powerful: ensuring that the benefits of AI are accessible to everyone, not just the largest corporations with the biggest technology budgets.

What struck me most was their focus on helping small and midsize businesses move beyond simply talking about AI and actually putting it to work. Through education, strategic guidance and practical solutions, RDU Labs is helping Main Street businesses understand how AI can improve productivity, serve customers more effectively and compete in an increasingly digital economy. At a time when many organizations are still trying to understand what AI means for them, RDU Labs is helping turn opportunity into action.

One of North Carolina's greatest entrepreneurial success stories, Scot Wingo, whom many of us affectionately regard as the "Master Jedi of Startups," has spent years building companies, mentoring founders and strengthening our entrepreneurial ecosystem. Through his leadership, the Tweener Fund, NC IDEA and countless acts of mentorship, Wingo has helped create what I have previously described as North Carolina's emerging "Startup Rebellion" —an entrepreneurial force committed to growing homegrown companies and creating jobs right here in our state. Like a true Jedi Master, Wingo continues to guide and inspire the next generation of founders who will build the companies of tomorrow. 

Organizations like NC IDEA have become indispensable to our innovation ecosystem, helping entrepreneurs turn ideas into businesses and businesses into engines of economic growth. Their work reminds us that innovation does not happen by accident. It requires intentional investment, mentorship, collaboration, and a willingness to take risks on bold ideas.

As we build our AI future, we should challenge ourselves to ensure that more venture capital and startup investment is directed toward solving the challenges facing small and midsize businesses —not just the needs of the largest enterprises. Too often, emerging technologies are designed first for organizations with vast resources and dedicated technology teams. We should reverse that trend.

North Carolina has an opportunity to become a national leader in supporting AI startups that help Main Street businesses become more productive, competitive, and innovative. By encouraging entrepreneurs, investors, and organizations like NC IDEA to focus on solutions for small businesses, we can ensure that the benefits of AI are broadly shared across our economy and communities.

This work comes at a critical time.

During my AI Fireside Chat a few years ago, former Cisco Chairman and CEO John Chambers challenged states and regions across the country, including North Carolina, to develop comprehensive AI strategies, arguing that AI will be one of the defining economic opportunities of our generation.  

North Carolina must embrace this challenge.

As North Carolina continues to develop its AI strategy, I would also encourage policymakers to ensure that small businesses have a seat at the table. The Governors AI Leadership Council has an important responsibility to help shape North Carolina's future in this rapidly evolving field, but that future should not be defined solely by large corporations, research institutions, and technology companies.

Small businesses employ nearly half of North Carolina's workforce and serve as the backbone of our economy. Their perspectives, challenges and opportunities must be part of the conversation. Whether it is a family-owned manufacturer exploring automation, a local retailer adopting AI-powered marketing tools or a startup building the next generation of innovative products, small businesses will be among the primary beneficiaries — and users — of AI.

If North Carolina truly wants to become an AI emergent state, we need broad representation on the AI Task Force, including entrepreneurs, small business owners, startup founders and organizations that support Main Street businesses. Their voices can help ensure that our AI policies, workforce initiatives, educational investments and economic development strategies create opportunities for businesses of every size, in every corner of our state.

The AI revolution should not be something that happens to small businesses. It should be something they help shape from the very beginning.

The future will belong not simply to those who use AI, but to those who learn how to integrate it into their operations, customer service, marketing, workforce developmentand long-term growth plans.

As I have reminded readers in previous articles, North Carolina has the opportunity to become an AI emergent state — a place where innovation, entrepreneurship, education and public-private partnerships come together to create broad-based economic opportunity. 

This vision requires leadership from every sector. It requires universities continuing to produce world-class talent, policymakers creating environments that encourage innovation while protecting consumers, technology leaders sharing expertise and best practices, investors willing to back bold ideas, and organizations like RDU Labs helping Main Street businesses navigate this new frontier.

As the Carolina Hurricanes pursue the Stanley Cup and the world looks ahead to the FIFA World Cup, we are reminded that success is built on preparation, teamwork, opportunity and execution. Artificial intelligence should help level the playing field for North Carolina's entrepreneurs — not by replacing people, but by giving businesses of every size the tools to compete, grow and innovate in an increasingly global economy.

Our AI goal should be simple: ensure that every small business, from local manufacturers and family-owned retailers to accounting firms, restaurants and startup founders, has access to the same transformational technologies being deployed by larger organizations.

If we get this right, North Carolina's small businesses won't just be watching the AI revolution from the sidelines. They'll be scoring goals, creating opportunities and helping our state win on the global stage.

Just as Jim Hunt helped champion a vision that positioned North Carolina for leadership in the knowledge economy, our generation now has the opportunity to build the foundation for leadership in the AI economy. Future generations will judge us not by whether we recognized the opportunity before us, but by whether we had the courage to seize it.

The AI revolution is here. The challenge before us is to ensure that Main Street is not left behind.

North Carolina has always succeeded when we bring people together around a common vision. If we do the same with AI, we can build a future where innovation creates opportunity for everyone, strengthens our communities, expands economic growth and ensures that businesses of every size have the chance not just to compete, but to win.

That is a goal worth pursuing.