Governors Propose Major AI Investment Initiatives to Boost State Economies (Targeting Workforce Development and Research)

Weekly Update, Vol. 12.

Key Takeaways

  • Governors across the country are launching state AI innovation initiatives, with New York's $400 million Empire AI consortium and New Jersey's AI hub partnership with Princeton University leading the way.

  • State AI research hubs are being established through executive orders and task forces in states like California, Massachusetts, and Oklahoma to advance their positions in generative AI and economic development.

  • AI workforce development legislation is moving forward in multiple states, with bills in Florida, Kentucky, and Oklahoma proposing to integrate AI into school curricula to prepare students for the changing job market.

  • California SB 893 would create an Artificial Intelligence Research Hub to foster collaboration between universities, government agencies, and private industry on AI research and development.

  • States beyond traditional tech hubs are positioning themselves to compete in AI innovation through public-private partnerships, research investments, and education programs as they work on their budgets this session.

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Much of our AI coverage has focused on potential regulation of the new technology, but policymakers are also seeking to harness the power of AI to improve the lives of their residents. No state wants to be left behind in what could be a revolutionary change to workforce, education, and government. Accordingly, governors and lawmakers have proposed ways to attract AI business and ready their state's workforce for a new AI world.

Governors Launch State AI Initiatives Through Executive Action

Recently, governors have used their annual State of the State addresses to look to the future with AI.

New York and New Jersey Invest in University AI Research Hubs

New York Governor Kathy Hochul (D) proposed a $400 million project called "Empire AI" that will bring together a consortium of seven New York universities for a research center dedicated to AI. The center will provide the computing power necessary to give access to AI tools to researchers, public interest organizations, and small companies for the public good.

Nearby in New Jersey, Governor Phil Murphy (D) proposed an "AI moonshot" in his State of the State address to "pioneer a series of AI-powered breakthroughs… that will change the lives of billions for the better." Last December, he announced a partnership with Princeton University to develop an AI innovation hub, and recently he named the state's first AI chief strategist.

California and Other States Form AI Task Forces

Last fall, California Governor Gavin Newsom (D) issued an executive order establishing a symposium with its universities to consider what efforts the state should take to advance its position in generative AI, although the looming budget deficit could impact plans to do more on AI.

Massachusetts Governor Maura Healy (D) also recently called on an artificial intelligence strategic task force to integrate AI into the state's economic development plans. And a task force set up by Oklahoma Governor Kevin Stitt (R) issued recommendations recently on how the state can support AI innovation through research and development, public-private partnerships, and aid to start-ups.

State Legislatures Focus on AI Workforce Development and Education

State legislators have pursued similar approaches, proposing legislation to address workforce development. California would establish an Artificial Intelligence Research Hub under a proposed bill (CA SB 893) that would foster collaboration between universities, government agencies, and private industry on AI research and development. Bills in Florida (FL SB 1344), Kentucky (KY SB 52), and Oklahoma (OK HB 3827) would integrate AI into school curricula. The Connecticut AI Task Force has also focused on AI workforce development and education in its committee meetings, with a report due to the legislature this month.

The Future of State AI Investment and Competition

Expect more investments into AI technology as lawmakers begin work on state budgets throughout the session. Current tech hubs like California, Texas, and Washington may have a leg up in AI innovation, but other states will be looking to stake their own claim. The AI landscape is rapidly evolving, and policymakers across the country will want to proactively position their states to navigate this transformative era.

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State AI Legislation in 2024 Targets High-Risk Systems and Algorithmic Bias (AI Bill of Rights and the Biden Blueprint Framework)