The headlines have focused on massive data center investments coming to Louisiana, but LSU economist Dek Terrell says that’s only part of the story. The bigger question is how artificial intelligence will reshape the state’s businesses, workforce and communities.
Terrell, director of the Center for Economics, Business and Policy Research at LSU’s E.J. Ourso College of Business, offered his take on how Louisiana can capitalize on AI’s opportunities while addressing its challenges in July’s episode of “Strictly Business”
Terrell launched the GoAI Economy research series to examine AI’s long-term impact on Louisiana. The first report introduces the state’s emerging AI ecosystem, while future reports will explore the economic trade-offs of major AI investments and their impact on Louisiana’s workforce.
“Louisiana has some advantages that most states don’t,” Terrell says.
That ecosystem includes energy, manufacturing, ports, universities, construction and federal facilities such as NASA’s Michoud Assembly Facility.
Higher education is also adapting. LSU recently launched the state’s first bachelor’s degree in artificial intelligence, while colleges and universities across Louisiana are expanding AI education and research. Terrell argues that traditional education remains essential, saying future workers will need the critical thinking skills to evaluate AI-generated work and ask the right questions, not simply rely on technology.
Despite attracting major AI investments, Louisiana ranks 44th nationally in AI adoption. Terrell views that ranking as a baseline rather than a ceiling, noting that adoption often accelerates in states that start behind. For business leaders, his advice is practical: Conduct an internal audit to understand how employees are already using AI and identify opportunities to improve productivity while safeguarding proprietary information.
Rather than simply replacing jobs, Terrell says AI is likely to reshape them through a mix of consolidation, collaboration between humans and AI, new career opportunities and some displacement of routine work. Louisiana’s strength in skilled trades and industrial construction may also provide an early advantage, since many physical jobs remain difficult to automate.
Ultimately, Terrell believes Louisiana should judge AI’s success by more than dollars invested or projects announced.
“I would really want to see community and business leaders begin a serious conversation about what they would like the future to look like,” Terrell says.
That means weighing economic growth alongside Louisiana’s culture, natural resources and quality of life. As AI transforms the economy, Terrell hopes business and community leaders will begin shaping the future intentionally, deciding not only how AI should be used, but where human judgment, interaction and stewardship should remain at the center.
