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Austin’s growing AI scene fuels debate: innovation or regulation? | KXAN Austin

But the speed at which the U.S. is competing causes concern for some about the future of AI. Brendan Steinhauser, CEO of The Alliance for Secure AI, says moving too fast could have long-term consequences.

“If we move too fast without getting the safety right, then we could end up with very powerful AI systems that we don’t control,” Steinhauser said. “We have to make sure that we maintain those controls and we don’t let the race go so fast that we’re not able to develop AI responsibly and in a way that human beings maintain control.”

Steinhauser points to the possibility of “superintelligence,” a future where AI systems out-think humans, as a risk that requires serious attention. Lawmakers, including Sen. Josh Hawley (R-Mo.) and Sen. Richard Blumenthal (D-Ill.), have introduced bipartisan legislation to address those concerns and increase safeguards. The AI Accountability and Personal Data Protection Act would:


By Nicole Vargas

In a classroom at the University of Texas at Austin, students research artificial intelligence as a tool to solve real-world problems. Up in Round Rock, a startup CEO prepares to launch a company built on that same technology. And throughout the Austin metro, companies are racing to develop AI systems that are faster, smarter and more accessible for their organizations and their users.

While these efforts come from different people across Austin and surrounding cities, they all have a shared ambition: showcasing the United States as a global leader in artificial intelligence.

The global AI race is underway, as countries compete to keep up with the rapidly evolving technology. With Austin emerging as a center of AI innovation, the people studying and working with the technology are shaping not only what it means for the U.S. to compete, but also the cost that comes with it.

Data shows the U.S. leads in overall AI computing power, a key measure of its position in the race. A report from TRG Datacenters compares both the number of AI “clusters,” which are large networks of computers that power artificial intelligence, and the total computing strength behind them. While countries like China may have more clusters, the U.S. leads in overall power, meaning its systems are more advanced and able to handle larger workloads.

Meanwhile, Austin’s tech industry is booming, with 61 data centers currently operating in the city and major figures like Elon Musk bringing new companies and investment to the region. That, along with the surge of AI development programs, a growing tech network and the pipeline of young talent from UT Austin, makes the Austin metro a magnet for those looking to enter the AI space.

“Austin is a technology hub that has something most others don’t: a full stack,” said Akash Sharma, vice president of product management at Enverus, a software-as-a-service company focused on AI and technology solutions for energy. 

Enverus is just one of hundreds of companies developing new AI-driven tools for users. Their newest initiative, Enverus ONE, is designed to harness years’ worth of data to support energy-specific workflows. 

“The energy industry is extremely valuable, but it’s also incredibly complex. There are a lot of different moving parts,” Sharma said. “There’s a lot of information sitting in different silos and different components.”

For Sharma, Austin’s rapid technological growth is helping launch the U.S. forward in the global AI race.

“The finish line of the AI race is full of capabilities that are exponentially further than where we are today,” Sharma said. “And I think the United States is leading in that space, driven significantly by innovation.”

A growing hub for innovation

It’s not just established companies driving the momentum. On the other side of the spectrum, startups are entering the space with the same sense of drive and urgency.

Melissa Wood, a Round Rock–based startup CEO, has experienced that firsthand. Her platform, Formus, uses artificial intelligence to streamline the pre-construction process for architecture and interior design.

“It is a city that’s not only very supportive and dedicated to the tech industry, but also aligns with being dedicated to how we build and educate in the AI space.”

For Wood, AI is essential — not just for her, but for any company in her same position.

“If you’re any kind of startup or starting company, you should be adopting AI,” said Wood. “It’s become a necessary way of operating and not just for software companies.”

But with that speed comes the pressure to keep up.

“Now, though, because it’s moving so fast, they want to see the magic,” Wood said. “So it’s a bit of a scary scenario for builders to make sure that we can keep up with this new technology.”

Balancing speed and safety

That rapid pace is at the center of a growing national debate: how to balance innovation with oversight.

In Washington, D.C., the White House has released recommendations for a national framework after leaving regulations up to individual states. While the proposals emphasize safety, particularly for children, they also reflect a broader goal: maintaining American dominance in the global AI landscape.

For researchers like Ken Fleischmann, founding chair of UT Austin’s Good Systems, finding that balance is crucial.

“It’s critical with how quickly AI is advancing every day. We have to be able to look several steps ahead,” Fleischmann said. “We can’t just think about the problems of the present; we have to think about the problems of the future.”

But the speed at which the U.S. is competing causes concern for some about the future of AI. Brendan Steinhauser, CEO of The Alliance for Secure AI, says moving too fast could have long-term consequences.

“If we move too fast without getting the safety right, then we could end up with very powerful AI systems that we don’t control,” Steinhauser said. “We have to make sure that we maintain those controls and we don’t let the race go so fast that we’re not able to develop AI responsibly and in a way that human beings maintain control.”

Steinhauser points to the possibility of “superintelligence,” a future where AI systems out-think humans, as a risk that requires serious attention. Lawmakers, including Sen. Josh Hawley (R-Mo.) and Sen. Richard Blumenthal (D-Ill.), have introduced bipartisan legislation to address those concerns and increase safeguards. The AI Accountability and Personal Data Protection Act would:

  • Bar AI companies from training on copyrighted works. 
  • Allow individuals to sue any person or company utilizing their content without consent.
  • Require transparency about which third-party companies have access to user data.
  • Provide financial penalties and injunctive relief.

“It’s really a good piece of legislation that I think would do a lot of good and help us develop AI safely and responsibly,” Steinhauser said.

AI’s impact hits home

In Austin, these debates are playing out in classrooms, offices and startups across the metropolitan area. The same environment that sparks innovation also raises questions about how far, and how fast, that innovation should go.

For Fleischmann, the answer lies not just in competing, but in being intentional about what that competition creates.

“The competition for advancing AI is heating up, and a lot of countries are getting involved,” said Fleischmann. “It’s important that we maintain our competitiveness in AI here in Texas and across the US, but that we’re doing it in a responsible manner, that we’re thinking about the implications that AI is going to have for society, that we’re building the society that we want to live in using AI.”

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