SAN JOSE — A cluster of artificial intelligence companies has sprouted in downtown San Jose, an emergence that has prompted local political and business leaders to find ways to spur tech growth in the city.
The city of San Jose has kicked off what it hopes will be a series of monthly meetings about what officials call the “AI ecosystem” in the Bay Area’s largest city.
The meetings are also geared towards finding ways to spur the growth of the emerging tech sector in downtown San Jose.
San Jose Mayor Matt Mahan was the kickoff speaker for the inaugural event that featured a key city official and a top IBM executive in a fireside chat on the rooftop of a downtown housing tower.
After the event, Mahan said in an interview with this news organization that creating clusters of tech and artificial intelligence companies in downtown San Jose is key to the industry’s growth in the city.
“Great cities have density that brings people together so that you have those serendiputous interactions among people who can collaborate to create new companies and new products,” Mayor Mahan said. “Innovation requires diverse groups of people to run into each and have productive conversations.”
The event also revealed that a cluster of artificial intelligence companies has already emerged in downtown San Jose, according to a study by CBRE, a commercial real estate firm.
An estimated 23 venture-backed artificial intelligence companies are located in downtown San Jose, according to the CBRE study.
These AI companies in downtown San Jose have raised $1.1 billion in venture funding since their launch.
In all of San Jose, 89 venture-backed AI companies have raised a combined $4.5 billion, CBRE reported.
IBM Software senior vice president of products Dinesh Nirmal was the industry leader who led a fireside chat — held next to rooftop fire pits at one of the two Miro housing towers on East Santa Clara Street in downtown San Jose — to kick off the monthly event.
“AI has completely changed things,” Nirmal said during the discussion. “AI is changing every aspect of life.”
While numerous observers warn against the perils of artificial intelligence and the hazards of the automation it is unleashing, Nirmal suggested that artificial intelligence can be viewed as a force for improving lives.
“People are using AI in many ways to improve their lives,” Nirmal said. “We are all benefitting from it.”
Despite these assurances, a growing number of experts and skeptics regarding artificial intelligence warn the cutting-edge technology could be used to replace humans and erase well-paying jobs. Some are concerned that artificial intelligence could even supplant tech workers.
“Will AI replace software developers?” Nirmal asked. He then answered his question by saying, “It’s more about improving the productivity of an employee rather than replacing the employee.”
What is certain, Nirmal maintained, is that AI has begun to produce a profound transformation of many aspects of American life.
“AI will change the way we live, the way we learn, the way we interact, the way we engage in commerce,” Nirmal said.
With these changes in mind, San Jose officials hope the monthly meetings can be a key catalyst to to bigger AI presence in the city.
“These gatherings will catalyze a growing and self-sustaining local community of innovators who collaborate — and perhaps also compete — to bring new AI-enabled tools and services to San Jose and beyond,” stated a flyer prepared for the kickoff event, which was held on Sept. 25.
City and business leaders hope to create a greater artificial intelligence workforce presence in downtown San Jose.
“Our goal is to help spur a growing AI-startup and innovation ecosystem in our downtown core, to enhance and accelerate efforts at City Hall, San Jose State, The Tech and other social and civic organizations that hope to leverage AI to improve the world,” the event materials stated. “We believe this can cement San Jose as the AI capital and spur companies to set up in our downtown.”
One way to achieve this, officials believe, is to encourage the creation of an artificial intelligence incubator site in downtown San Jose. A search is underway for such a site, according to the mayor.
“We are working very actively to bring an incubator to downtown and take advantage of the immense talent that is being educated here in our downtown at San Jose State University,” Mahan said.
