Legislation to Spur Investment in New Jersey’s Artificial Intelligence (AI) Sector Now Law
Today, July 25th, Governor Phil Murphy signed A-4558/S-3432 into law. This bill establishes the “Next New Jersey Program” that will attract new investment into the state’s artificial intelligence (AI) industry, creating new jobs and economic opportunities. The program is intended to position the state as a national leader in the industry. Its goal is to unlock access to capital for New Jersey’s innovators and entrepreneurs and ensure they have access to the infrastructure necessary to make new, cutting-edge developments.
The “Next New Jersey Program” will be administered by the New Jersey Economic Development Authority (NJEDA), which will award tax credits to eligible businesses that are engaged in artificial intelligence work or large-scale artificial intelligence data centers. Artificial intelligence related activities could include developing new algorithms and techniques, such as machine learning and natural language processing; creating AI-powered software and hardware products, including for medical modeling; and developing AI chatbots for customer service.
Last December, the Murphy Administration and Princeton University announced a partnership to develop an AI Hub, which will advance New Jersey’s leadership in the field and catalyze innovation in AI technologies. The AI Hub is expected to bring together industry leaders, researchers, and start-up companies to advance research and development in the emerging field. The hub will promote workforce development to support new AI technology development and implementation. Additionally, the AI Hub will house dedicated accelerator space and work to advance the use of ethical AI for positive societal impact.
Last fall,the Administration also established the AI Task Force, charged with studying emerging AI technologies and its societal impacts. The state’s AI initiative draws on New Jersey’s unique strengths in the health, sustainability, financial, and technology sectors, which stand to benefit from the application of AI technologies to advance innovative breakthroughs.