The Next Frontier of AI

Indiana enters 2026 with rising momentum. Founders, investors, and operators are navigating an economy defined by rapid technological change, shifting capital markets, and increasing national competition for innovation leadership. The Predictions Workshop was designed to give the state’s entrepreneurial community a clear view into what lies ahead. It opened with a session from Brett Swanson, a technology researcher whose work on productivity, infrastructure economics, and digital transformation has shaped conversations in policy, academia, and industry.

Session Overview

Swanson opened with a comparison that framed the scale of the moment. The United States spent roughly three trillion dollars building the modern internet between 1995 and 2025. AI may match that investment in a fraction of the time, with projections showing that another three trillion dollars will be deployed by 2030 into data centers, chips, and next-generation digital infrastructure. Unlike the debt-fueled dot-com era, today’s hyperscalers are investing from extraordinarily strong balance sheets, making the foundation of this buildout far more durable.

He noted, however, that the most significant constraint is not capital or technology but power. Some data centers are already built, yet cannot be switched on due to insufficient electrical capacity. Electricity, not silicon, is becoming the gating factor for AI’s growth. For Indiana founders, this creates both urgency and opportunity: regions that expand generation and grid reliability will be best positioned to attract AI-driven industries and the jobs that accompany them.

From infrastructure, Swanson shifted to productivity. His research shows that while digital industries have surged in efficiency over the last two decades, physical industries such as manufacturing, healthcare, and energy have stagnated. AI represents the first credible opportunity to close that gap. Early signals show developers doubling their output and companies operating with leaner teams. If similar gains take hold across physical operations, Indiana’s core industries could benefit disproportionately.

He explained that AI also reshapes who can build. Each era of computing has expanded access, and AI continues that progression by removing the barrier of technical expertise. Natural language interfaces will allow more founders to build tools, automate processes, and model systems without traditional engineering backgrounds. This shift may create a barbell-shaped market, with more one-person companies on one end and more powerful incumbents on the other.

Swanson closed with a warning about the cultural impact of AI: a coming “info warp” marked by overwhelming volumes of generated content. Navigating that environment will require stronger networks, trust, and institutional clarity. Even with turbulence ahead, he emphasized that Indiana is positioned to capitalize if it aligns energy capacity, entrepreneurial ambition, and a clear strategic vision for the decade ahead.

Key Takeaways

AI infrastructure is scaling at historic speed.
The next decade may see investment levels comparable to the entire internet buildout, creating new opportunities in compute, energy, and digital infrastructure.

Electricity is the new constraint.
Power availability will determine which regions can support next-generation AI growth. States prepared to expand generation and grid capacity will capture the greatest economic upside.

The productivity boom will occur inside physical industries.
Manufacturing, healthcare, logistics, and energy stand to gain the most from AI-driven efficiencies, creating a strategic advantage for Indiana.

Company formation will change dramatically.
Lower barriers to building software and automating work will enable smaller, more agile teams while intensifying competition among large incumbents.

AI will democratize technical capability.
Natural language interfaces will allow non-engineers to build tools, run models, and automate workflows, expanding who can participate in Indiana’s innovation economy.

Expect volatility, but invest in long-term fundamentals.
Technological revolutions come with cycles, but founders who focus on value creation, talent, and clear markets will benefit from the decade ahead.

Why It Matters

Indiana’s economic strengths align directly with the industries most likely to experience AI-driven transformation. Manufacturing, logistics, agriculture, energy, and health systems are all positioned to benefit from efficiency gains and new computational capabilities.

Elevate Ventures supports founders operating in these sectors, helping them translate technological inflection points into competitive advantage. Swanson’s insights reinforce that Indiana does not need to mimic coastal models; it can lead by applying AI to the physical industries where the state already excels.

Closing Reflection

Swanson’s session framed the day with clarity and ambition. Indiana is entering a moment where technological acceleration intersects with regional strength. For founders willing to think boldly and build deliberately, AI represents not disruption to fear but momentum to harness, momentum that could define the state’s innovation economy for years to come.

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