Bill > A5167

Introduced Session

This bill provides support, through the New Jersey Economic Development Authority ("authority"), to New Jersey-based start-ups, small businesses, and medium-sized businesses that operate within the artificial intelligence industry or that seek to adopt artificial intelligence capabilities. Specifically, the bill establishes three distinct programs within the authority to support these purposes and appropriates a sum of $175.5 million to support these programs. AI Job Creation and Economic Development Fund Program First, the bill establishes the "AI Job Creation and Economic Development Fund Program" within the authority to support the establishment, expansion, or improved operations of AI businesses in the State and to support the development of AI innovation hubs by AI businesses in the State. Under the program, the authority would provide: (1) grants of up to $500,000 to AI businesses that seek to develop AI innovation hubs in the State; and (2) low-interest loans of up to $1 million to AI businesses that seek to establish, expand, or improve business operations in the State. An AI innovation hub is defined under the bill to include any facility or campus that is designed to foster artificial intelligence research, development, and commercialization through collaboration between businesses, academic institutions, and research organizations. To qualify for assistance, AI businesses would be required to demonstrate a viable business plan, commit to creating a minimum number of new full-time jobs in New Jersey, as determined by the authority, and meet certain other eligibility requirements. The bill appropriates $25 million from the General Fund to the authority to support the operations of this program. These monies would be deposited into a non-lapsing revolving loan fund, which the authority would administer for purposes of the program. Notably, the bill requires the authority to submit annual reports detailing program operations, including the number of jobs created, economic impact, and development of AI innovation hubs. AI for Small Business Grant Program Secondly, the bill establishes an "AI for Small Business Grant Program" in the authority, supported through a special, non-lapsing fund known as the "AI for Small Business Grant Program Fund," for the purpose of awarding grants to qualified start-up businesses and small businesses that seek to adopt and implement artificial intelligence technologies for research and development, business expansion, or job creation purposes. Under the program, start-up businesses and small businesses could apply for grant funding to adopt and implement artificial intelligence technologies for research and development purposes, business expansion purposes, and job creation purposes. However, any grant awarded to a recipient would not be: (1) less than $50,000 or greater than $250,000 for research and product development purposes; (2) less than $250,000 or greater than $1 million for business expansion purposes; or (3) less than $10,000 or greater than $20,000 for job creation purposes. The bill appropriates $150 million from the General Fund to the authority to support this program. Beginning one year after the establishment of the grant program and each year thereafter until all funds deposited into the AI for Small Business Grant Program Fund have been expended, the authority would be required to submit a report to the Governor and the Legislature on the number of applications submitted during the previous year, and the amount awarded to each grant recipient for that year. AI for Small and Medium-Sized Businesses Consultancy Program Lastly, the bill also establishes the "AI for Small and Medium-Sized Businesses Consultancy Program," which would be administered by the authority, in consultation with the New Jersey Chief Technology Officer. Under the program, the authority would provide consultancy services and technical assistance to small and medium-sized businesses, upon application to the authority, in identifying and implementing the artificial intelligence technologies and tools that support the business development and growth plan identified in the business's application to the program. The program would be administered by a manager, appointed by the Chief Executive Officer of the Authority, qualified by work in artificial intelligence development activities or its equivalent in training and experience. As part of the program manager's duties, the person would establish and update, as necessary, a database listing the availability of qualified artificial intelligence professionals, businesses, research institutions, industry networks, academic networks, technologies, and tools in the State. The database would be published and maintained on the official Internet website of the authority. The bill appropriates $500,000 from the General Fund to the authority for the purposes of establishing and administering the AI for Small and Medium-Sized Businesses Consultancy Program.

AI Summary

Committee Categories

Reginald Atkins (D)*,  Julio Marenco (D)*, 

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 01/14/2025)

Official Document