According to a Microsoft AI Economy Institute report, Watauga County leads North Carolina in AI usage, with an estimated 47.2% of working-age residents using the technology, more than double the 22.9% average for similar-sized communities. The 2026 U.S. AI Diffusion report analyzed anonymous, aggregated data from Microsoft’s device ecosystem to estimate AI adoption at national, state, and county levels. Watauga’s 47.2% user share is the highest in the state and ranks 23rd nationally. Nearby mountain counties lag, including Ashe County at 18.5%, Avery County at 18.6%, and Mitchell County at 16.4%, with the lowest being Clay County at 13.5%. The report found a strong correlation with college towns; counties with larger shares of residents ages 18 to 24 tend to have higher AI user share. Watauga is home to Appalachian State University. The report states that among counties with at least 10,000 residents, each of the top 15 counties by AI user share has a college or university. Nationally, the highest county is Williamsburg, Virginia, at 73.2%.