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Help for States on Developing AI Literacy in the Workforce

A new resource from the U.S. Department of Labor’s Employment and Training Administration offers states guidance on how to use federal funding to support AI literacy training in the workforce.

The U.S. White House with cyan AI text in front of it.
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New federal guidance advises state workforce agencies on ways to develop AI skills among youth and adults to support career advancement in an economy that increasingly requires them.

The majority of jobs now require digital skills, and today, digital skills include AI literacy. In fact, employers are insisting on AI literacy, and some states are already investing in AI training.

Now, as AI literacy is widening digital inequities, the federal government has joined the effort to expand the skill set across the workforce.

The U.S. Department of Labor’s (USDOL) Employment and Training Administration issued guidance to states and local entities on Tuesday — specifically, to state workforce agencies, administrators and liaisons; state and local workforce board chairs and directors; labor commissioners; and American Job Centers — offering ways in which they can use federal Workforce Innovation and Opportunity Act (WIOA) funding to improve AI literacy.

“As AI continues to reshape the labor market, we are seeing entire new categories of jobs be created, many of which are high-paying and no longer require a four-year degree,” U.S. Deputy Secretary of Labor Keith Sonderling said in a statement, underlining that AI literacy is the “gateway to opportunity” in this economy.

The resource requests that state and local workforce development boards use WIOA funding as authorized to support the enhancement of AI skills within broader digital literacy efforts.

Specifically, state and local boards are encouraged to leverage career and training services through the WIOA Adult and Dislocated Worker programs to support AI training for those who are eligible — people whose ability to obtain employment would benefit from AI literacy and digital skill building.

They can also use training programs available through the Eligible Training Provider List (ETPL), or even contract training services outside of the ETPL.

For youth, the WIOA Youth programs may incorporate AI skill building where appropriate within the youth’s individual Service Strategy, such as within the “occupational skills training” program element.

Finally, the guidance indicates that states may leverage their governor’s reserve funds from their annual Adult, Dislocated Worker and Youth program allotments to incorporate digital literacy and AI training within programming.

Beyond funding information, the guidance informs state and local entities to explore AI education and training in several foundational areas: how AI works, potential uses, effective prompting, evaluating outputs, and safe and secure usage — including cybersecurity practices.

The guidance underlines that learners should understand their own accountability for information they input in AI systems and how they use the information from outputs. The USDOL’s Competency Model Clearinghouse describes the necessary skills for a competitive workforce, including information on digital skills and AI skills.

As additional resources become available from the federal government to support AI literacy, information will be available on AI.gov, the guidance states.

The guidance delivers on a recommendation from the federal government’s AI Action Plan, which calls on state entities to play a role in broader AI adoption, including workforce development efforts, across the U.S.

Notably, as the federal government encourages broader state-level AI education, the plan may pose challenges to responsible implementation as states’ enacting of AI-related regulations for secure use may cost them federal funding.