The Joint Center for Political and Economic Studies today released a new policy brief highlighting both the opportunities and risks that the emerging AI economy presents for Black entrepreneurs. The report, How State Policymakers and Community Leaders Can Help Close the Federal AI Policy Gap for Black Entrepreneurs, outlines how state and local governments, philanthropic organizations, and private-sector leaders can act to ensure Black business owners are able to compete and lead in the AI era.

Artificial intelligence is increasingly embedded in the everyday operations of businesses across industries, shaping how firms scale, compete, and access markets. Yet the report warns that current federal AI policy proposals risk embedding existing inequalities into the foundations of the technology by removing explicit protections against discrimination and bias from the national policy agenda.
“Artificial intelligence has the potential to transform the economy, but whether it expands opportunity or deepens inequality will depend on the policies and systems we build around it,” said Danielle (Davis) Canty Esq., Joint Center Senior Advisor and Director of Technology Policy and brief author. “This brief shows that even in the absence of strong federal leadership on equity, state policymakers, community leaders, and industry partners have powerful tools to ensure Black entrepreneurs can access, shape, and benefit from the AI economy.”
In 2022, approximately 194,585 majority Black employer firms generated about $211.8 billion in annual receipts and employed roughly 1.6 million people, while more than three million Black-owned non-employer businesses contribute to local economies and community stability across the country, underscoring the true importance of Black entrepreneurship to the U.S. economy.
“Black entrepreneurs have always been innovators, often adopting new technologies early in order to compete and grow,” said Dedrick Asante-Muhammad, President of the Joint Center for Political and Economic Studies. “Ensuring they have strong access to AI tools, infrastructure, and capital is not only a matter of bridging racial inequality — it is essential for building a more dynamic and competitive American economy.”
The brief identifies four key areas shaping access and opportunity:

  • Knowledge and training gaps: Most AI education initiatives are designed for engineers rather than small business owners.
  • Infrastructure disparities: Unequal access to broadband and computing power continues to limit participation in the AI economy.
  • Capital barriers: Black-founded startups have received less than half of one percent of venture capital funding in recent years.
  • Representation gaps: Black entrepreneurs remain underrepresented in AI policymaking and governance bodies that shape how the technology develops.

At the same time, the report highlights early examples of Black entrepreneurs already using AI to expand their businesses — from generating marketing content and grant proposals to automating operations and reaching new customers. These uses demonstrate how AI can function as a “force multiplier” for small firms that have historically been required to do more with fewer resources.