Louisiana Economic Development (LED)‘s new division, Louisiana Innovation (LA.IO), will support business innovation and artificial intelligence advancement in the state.
The state has long valued its relationships with private-sector partners; this mindset is of value as its technology sector expands.
LED is a state agency established in 1936 to support economic development needs in the state of Louisiana. Its LA.IO Division, announced Thursday, has a mission “to position Louisiana as a global leader in innovation by leveraging the state’s unique strengths.”
LA.IO is charged with developing the Louisiana Institute for Artificial Intelligence, a nonprofit organization that will be Louisiana’s “lead anchor” for its statewide AI strategy. The strategy is focused on applied research and development, commercialization, workforce development and policy pertaining to AI. The new Institute will be responsible for upgrading 5,000 small businesses across the state with AI tools as its first project.
“Successfully positioning Louisiana to win demands that we not only attract new businesses, but grow new businesses from the ground up,” Louisiana Economic Development Secretary Susan B. Bourgeois said in a statement, adding that the state is “investing in the next industrial revolution.”
Another key role of LA.IO will be in the creation of the Louisiana Growth Fund. The fund will start with $50 million from the federal government to support the establishment and scaling of startup businesses.
LA.IO will also be tasked with convening partnerships with organizations that have already supported innovation in the state. LED currently participates in seven seed capital funds across Louisiana and plans to add to this portfolio in 2025. These partners are expected to use established funding streams — including the State Small Business Credit Initiative — to support startup businesses with additional capital. The $50 million brings their total available funding to more than $100 million.
The aforementioned partners are the Ochsner Louisiana Innovation Fund, Tulane University’s Innovation Institute, the New Orleans Startup Fund, Innovation Catalyst, Boot64 Ventures, The Idea Village, and Propeller.
Partners that will lead LA.IO events include The Idea Village and Opportunity Machine. The state hopes to add more university partnerships soon. All are expected to work together under the Louisiana Innovation initiative, sharing information and best practices to implement and scale successful business models.
LA.IO’s website highlights four existing innovative technology solutions in use in Louisiana: Delta Biofuel using sugarcane waste for energy, Intralox supply chain technology, MECO’s water purification equipment for injections, and the Natrx platform for resilience challenges.
As part of the state’s announcement unveiling LA.IO, officials touted several other significant accomplishments Louisiana has made supporting innovation in technology and business. These include Meta’s $10 billion Richland Parish data center project and Waymo’s selection of New Orleans as one of 10 cities on its 2025 Waymo Road Trip tour. Through this learning tour, Waymo aims to situate its autonomous navigation system in unique driving environments to further inform the product with applied learning.
“Facilitating the right connections and offering coaching to innovators and startups are just as vital as the funding that’s being made available through Louisiana Innovation,” LED Chief Innovation Officer Josh Fleig said in a statement.
