States Pursue AI for Economic and Workforce Development 

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.

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

Last fall, California 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 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.

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.

Recent Policy Developments

  • Colorado: Secretary of State Jena Griswold (D) raised alarms over political deepfake campaign ads in a press conference last week. Her office supports a bill (CO HB 1147) that would provide a civil action against someone for distributing a political deepfake ad with malice as to the falsity of the content. 

  • New York: Lawmakers amended a bill (NY SB 2477) that would protect models in the fashion industry, adding provisions to require written consent for the creation or use of a model's digital replica. The bill has already passed the Senate, which bill sponsor Senator Brad Hoylman-Sigal (D) said was an “enormous step.”

  • Oklahoma: Gov. Stitt (R) released the final recommendations from his task force on artificial intelligence and emerging technologies last week. The task force studied how to invest in AI infrastructure for economic growth, use AI ethically with transparency, accountability, and data protection, include AI in curricula and workforce training programs, and encourage AI innovation in the state.

  • Washington: Gov. Inslee (D) signed an executive order this week that would require the development of guidelines for public sector procurement and uses of generative artificial intelligence. The guidelines would be developed over the next year and would use the White House Blueprint for an AI Bill of Rights as guidance. 

  • Wisconsin: Two Republican lawmakers circulated a proposal to use AI to require state agencies to use artificial intelligence tools to reduce workforce needs. The task force created by House Speaker Robin Vos (R) also proposed five bills to deal with sexual and political deepfakes, offer data protections, and track AI use by state government, with a recommendation for the legislature to have a standing committee on emerging technologies.

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