The state has been an early adopter of AI technology, from its November 2023 policy for state use, to the January 2024 appointment of a chief AI strategist, to the creation of AI training opportunities for state employees.
The new programs are intended to deliver on recommendations outlined in the state AI Task Force’s December report to the governor, which highlighted the need for AI strategy to address jobs of the future and make the state an AI innovation hub.
The creation of the Next New Jersey Program — AI and the AI Innovation Challenge Administration Grant Program was approved by the New Jersey Economic Development Authority (NJEDA) Board in March. Both of the new initiatives aim to incentivize private-sector investment in the state to support its economic growth, according to Kathleen Coviello, NJEDA chief economic transformation officer: “It’s really at the heart of everything we’re doing.”
The Next New Jersey Program — AI is a $500 million endeavor that will provide tax credits to eligible businesses that are investing in large-scale AI data centers, and to companies engaging in AI-related activities. To be eligible for it, a business must commit to creating at least 100 new full-time jobs and meet a minimum capital investment of $100 million. As part of the program, the business would be required to partner with a New Jersey-based public or private research university, technology startup, incubator, accelerator or similar entity.
The computing power required to enable wide-scale AI implementation is a common challenge for government, she explained, and the state is working to create a landscape that is accessible for smaller businesses like AI startups to participate in.
New Jersey is working to position itself as a leader in this area, and pushing to be the East Coast hub for AI, Coviello said. She emphasized that the program is uniquely set up to spur job creation in a way that connects the awardees to the broader AI ecosystem in the state.
The latter program, the AI Innovation Challenge Administration Grant Program, will provide $3.8 million in grant funding to an eligible administrator. That administrator will be charged with developing and managing a statewide AI challenge to disperse subgrant awards to challenge winners.
The goal is to use AI to solve government problems, Coviello said. And the scope is wide; it could range from challenges related to traffic lights to procurement: “anything government touches.” Ultimately, an ideal solution would be one that helps state government be more efficient, she said.
The state is working with residents to gather feedback and better understand what solutions would be most impactful for them.
The challenge will include a competitive event and virtual showcase during which participants will present an AI-based software prototype, and winners will demonstrate a minimum viable product. Winners will continue working with the administrator on pilot testing or commercialization of their solutions. They will receive mentorship and support from the administrator’s network of experts.
Applications for the challenge program will open following a notice of funding availability that will be published on the NJEDA website.
Another tangible example of public- and private-sector collaboration in the state is its AI Hub, which was established in December 2023 in collaboration with Princeton University. The initiative aims to create an accelerator for AI researchers, industry leaders, startup companies and others stakeholders to advance AI research and development. Officials held a ribbon-cutting for the AI Hub March 27.
In addition to the collaboration between the state and Princeton University, the effort is also supported by Microsoft and CoreWeave, the latter of which Coviello said is a “homegrown” business. Each of these four entities are equity partners in the hub, bringing unique experience to the work. And each of the partners have agreed to the three founding pillars of the hub: 1) focus on research and development; 2) commercialization and accelerating innovation; and 3) AI education and workforce development.
The hub is well-capitalized, Coviello said, with an operating budget to support its work for five years.
“I think what you will see is more opportunities coming out of the AI Hub,” she said, noting the collaborative efforts supported through the hub and the other newly announced programs illustrate the “connective tissue,” as she called it, or the “web” convening multiple pieces of the state’s AI economy.
AI is impacting all industries, she said, and advised businesses in the state to look to the AI Hub, which she argued will be the “central location” to get involved in the state’s AI work in the future.
For other states looking to implement a similar economic lens for AI adoption, she recommended leveraging the assets available to them. For New Jersey, she said proximity to New York, a highly educated workforce, and the presence of an Ivy League institution have helped position the state to uniquely excel in AI innovation.
Coming soon, the state expects to launch an initiative dedicated to AI fellows, Coviello said, providing them with opportunities to benefit from mentorship and support, via the partnership with Princeton. Fellows will likely also have the chance to co-locate at the AI Hub.
