Report: Nearly 10 percent of KC’s economy is tech; How AI is reshaping the way world sees Kansas City

Kansas City now has one of the densest tech workforces in the Midwest, said Kara Lowe, emphasizing that the City of Fountains has surpassed larger cities like Chicago, Houston, and Nashville, with a greater economic impact on the local population than in any of those metros.

More than 77,000 skilled professionals, representing 9 percent of Kansas City’s total economic output, are employed in tech, said Lowe, president and CEO of the KC Tech Council, presenting data from her organization’s just-released KC Tech Specs report. 

It’s a testament to the city’s strong cross-industry tech presence, she added.

“One thing I want you to take away from this,” Lowe said during a recent Back2KC event in the Crossroads, “is that tech is a bigger deal economically and a bigger deal percentage-wise to our workforce than many larger cities.”

Kansas City’s high density of tech workers, combined with its lower cost of living, positions it as a major destination for both businesses and talent seeking opportunities without the expensive living costs of larger tech hubs, she added.

Click here to explore the latest KC Tech Specs report.

The city’s tech outlook and related opportunities for newcomers was among topics explored during a day-long Back2KC event organized Friday by KCRise Fund — a years-long initiative launched in 2018 by founder Darcy Howe to rekindle connections between former Kansas Citians and the city’s startup ecosystem.

Hosted largely at SafetyCulture’s U.S. headquarters in the Crossroads, Back2KC welcomed about 20 expats — hailing from a range of Washington, D.C. to Redmond, Washington —  and 10 new-to-Kansas Citians for its 2024 gathering. Programming sessions ranged from sports to startups, curated networking, and community spotlights aimed at highlighting Kansas City as a place to live, start and grow.

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Kansas City’s tech momentum shows no signs of slowing, Lowe told the Back2KC crowd.

As the city climbs the ranks of national tech hubs, the 2024 report offers a detailed look at key data in the industry, from the rapid growth of the tech workforce to the city’s expanding influence in artificial intelligence.

“Despite economic challenges, Kansas City’s tech industry has demonstrated resilience

and adaptability,” said Lowe. “Our region continues to attract tech talent, foster innovation, and provide a supportive environment for tech businesses.”

Kara Lowe, KC Tech Council, presents findings from the 2024 Tech Specs report to a crowd of Back2KC participants; photo by Taylor Wilmore, Startland News

Tech workforce expansion

The KC Tech Specs report reveals that Kansas City’s tech workforce grew by an impressive 16 percent between 2021 and 2023, with further job growth expected through 2024, Lowe detailed. 

This expansion highlights Kansas City’s diverse workforce, with young and mid-career professionals playing key roles, she said. The city’s talent retention is driven by opportunities in sectors like software development, IT support, and its positive reputation for tech innovation.

Lowe explained the importance of both nurturing local talent and attracting professionals from beyond the region.

“We cannot fill all of our tech jobs here just based on local computer science graduates,” she said. “We need people to come here to Kansas City.”

Slow and steady hiring

Despite positive growth, the report acknowledges that a rapid post-pandemic hiring surge has moderated, both nationally and in Kansas City. 

The stabilization of the tech workforce, while slower than previous years, has been less drastic in Kansas City compared to national averages, Lowe said. According to the report, companies are still hiring, but at a more measured pace.

“We actually had a slight dip in tech job openings year over year,” said Lowe, “but Kansas City’s dip, about 27 percent, was less than the 34 percent dip nationally, showing our resilience.”

This change is a natural response after years of high demand, she added, with tech companies now focusing on securing their progress and planning for steady, long-term growth.

Kara Lowe, KC Tech Council, presents findings from the 2024 Tech Specs report to a crowd of Back2KC participants; photo by Nikki Overfelt Chifalu, Startland News

Leading in artificial intelligence

A key highlight from the KC Tech Specs report is Kansas City’s strong lead in artificial intelligence (AI) investments. The city is ahead of national trends, spending more than $7.8 million on AI and machine learning in 2023. 

This increase in AI spending puts Kansas City at the cutting edge of innovation, with AI making up 31 percent of local tech investments — more than twice the national average of 14 percent.

Local tech companies are using AI more and more to improve efficiency and explore new ways to grow, strengthening Kansas City’s image as a forward-thinking city, Lowe said. 

And it’s creating national attention for KC, she added. 

“Our constant momentum has earned us attention from industry observers, including the Wall Street Journal, who have taken notice of our growth despite the downturns that have affected larger coastal markets,” Lowe said.

Click here to read the full KC Tech Specs report.

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