State of AI
All chapters
Chapter 06 / 06
Region

Region & Bundesland

Austria's AI Geography — Beyond Vienna

Vienna alone holds 60% of Austria's AI workforce. Vienna–Graz–Linz together over 70%. Beyond the corridor, AI thins fast.

9 min readSource: Revelio Labs via WRDS · Ch. 6
60.4%
Vienna's share of Austrian AI
0.37
Core AI City HHI · ~1.5× non-AI
24–48%
AI salary premium, every region
~1×
AI intensity: MNC vs Austrian firms

Austria's AI talent is not just growing. It is concentrating. Vienna holds 60.4 % of state-tagged Core AI, up from 59.7 % in 2018; the top three Bundesländer account for 81 %. The Vienna–Graz–Linz triangle holds 90 %+. A separate ~13 % of AI workers are self-employed or unmapped to a Bundesland — a quiet block that grew with v5's panel expansion.

But the headline masks nuance. Upper Austria and Styria show deeper technical profiles than Vienna: Graz's Core share (~45 %) beats Vienna's (~39 %). The AI salary premium reaches 24–48 % across the Bundesländer; AI upskilling is the single most powerful regional economic-upgrading lever available.

EXHIBIT 6.1

Regional AI workforce growth

Key findings
  • Vienna added ~3,700 Core AI positions (~60 % of all state-tagged national growth).
  • Upper Austria and Styria grew from 862 to 2,080 ai_positions — a credible secondary axis.
  • Core AI CAGR (16.2 %) exceeds Full AI CAGR (11.8 %) — deepening everywhere, not just Vienna.
Source: Revelio Labs via WRDS · Chapter 6
EXHIBIT 6.2

Vienna's dominance — concentration over time

Key findings
  • Vienna's Core AI share is ~2× its ~30 % employment share — the most geographically concentrated high-skill sector.
  • City-level HHI (0.37) is ~1.5× the non-AI HHI — concentration exceeds general economic concentration.
  • Concentration has held remarkably steady — Vienna's state-tagged share moved from 59.7 % in 2018 to 60.4 % in 2025.
Source: Revelio Labs via WRDS · Chapter 6
EXHIBIT 6.3

Top AI cities — beyond Vienna

Key findings
  • Graz hosts ~691 AI positions in 2025 (~6 % of state-tagged); Core share (~45 %) exceeds Vienna's (~39 %) — deeper technical specialisation.
  • Linz has emerged as a fast-growing hub (~526 AI positions) driven by JKU/LIT AI Lab; growth outpaces Vienna's in recent years.
  • Vienna–Graz–Linz accounts for 90 %+ of state-tagged AI positions; the remaining Bundesländer share fewer than 1,200 between them.
Source: Revelio Labs via WRDS · Chapter 6
EXHIBIT 6.4

AI salary premium by region

Key findings
  • Premium ranges 24–48 % across the Bundesländer (Burgenland excluded for small sample) — not a Vienna phenomenon.
  • Tyrol leads at 48 %; Salzburg, Carinthia, Upper Austria and Styria cluster at 34–37 %.
  • AI skills are the single most valuable career upgrade regardless of location.
Source: Revelio Labs via WRDS · Chapter 6
EXHIBIT 6.5

Multinational vs domestic AI intensity

Key findings
  • AI intensity is broadly comparable between foreign-HQ and domestic firms — median ratio across the Bundesländer is ~1×, not the 2–3× the prior dataset suggested.
  • Vienna (1.09×) and Carinthia (1.84×) lean MNC; Salzburg (0.61×) and Burgenland (0.40×) actually lean domestic.
  • The 'foreign R&D anchor' narrative is a Vienna-and-Vorarlberg story, not a national pattern.
Source: Revelio Labs via WRDS · Chapter 6
EXHIBIT 6.6

Tier composition by Bundesland

Key findings
  • Upper Austria and Styria show higher Build/Enable shares than Vienna — manufacturing/engineering orientation.
  • Vienna dominates Integrate — the AI application and business-interface hub.
  • Complementary specialisation is an asset — application poles (Vienna) and capability poles (Graz, Linz).
Source: Revelio Labs via WRDS · Chapter 6
Methodology

Firm-level location data from Revelio Labs, mapping AI workers to Bundesländer via employer's primary registered location. Firms with multiple locations are assigned to the HQ state unless individual data is available. HHI = sum of squared Bundesland shares.