Workforce Development Competitive Funding for AI Adoption

The Workforce Development Competitive Funding for AI Adoption initiative is administered through a collaboration between the South Dakota Department of Labor and Regulation, the Workforce Development Council, the South Dakota Chamber of Commerce and Industry, and the Governor’s Office of Economic Development. This program is designed to help businesses remain competitive in a rapidly evolving economy by supporting the adoption and effective use of artificial intelligence technologies within their workforce. The initiative reflects a broader state-level strategy to enhance productivity, innovation, and workforce readiness through targeted investments in training and capacity building related to AI tools and systems. The purpose of this funding opportunity is to provide financial assistance to businesses seeking to explore, implement, or expand the use of artificial intelligence within their operations. The program is structured into three distinct categories: AI Business Discovery, AI Training Implementation, and AI Awareness. These categories are intended to meet businesses at different stages of AI adoption, from initial exploration to full implementation and workforce training. The funding supports activities such as consulting services to identify AI opportunities, employee training programs to build technical proficiency, and basic awareness initiatives to introduce foundational AI concepts to staff. Funding is provided through a cost-sharing model for Categories 1 and 2, where the Department of Labor and Regulation will match up to 50 percent of eligible costs. For AI Business Discovery, the maximum reimbursement is capped at 5000 dollars, while AI Training Implementation allows for up to 20000 dollars in reimbursement. Category 3, AI Awareness, provides a fixed reimbursement of 1000 dollars per employee, not to exceed 10000 dollars per business, for time spent completing approved training programs. Importantly, the funding is restricted to training and discovery activities and does not cover the purchase of AI tools or software licenses. All payments are made directly to the business upon submission and verification of required documentation. Eligibility for this program includes private for-profit businesses, nonprofit organizations, and public sector employers that maintain a physical presence in South Dakota. Applicants must submit their applications electronically and demonstrate a clear plan for utilizing AI training or discovery services. The program allows applicants to apply for multiple categories within a single application, and participation in one category is not a prerequisite for another. However, all proposed training activities must occur after contract execution and must be completed within the designated performance period. The application process requires submission of detailed cost estimates or vendor quotes, identification of third-party consultants or training providers, and a description of the intended outcomes. Following submission, applications are reviewed by the Workforce Development Council, which is responsible for approving funding awards. Successful applicants must enter into formal agreements with the Department of Labor and Regulation prior to initiating any funded activities. Required documentation for reimbursement includes invoices, proof of payment, training details, participant information, and final reports summarizing outcomes and return on investment. Key deadlines for the program include an application submission deadline of August 7, 2026, with review and approval actions scheduled for August 25, 2026. Award notifications are expected by September 1, 2026, and all training activities must be completed by June 30, 2027. Invoices must be submitted no later than July 30, 2027. The program does not specify recurring cycles, and all awards and contract amounts will be made publicly available. Questions and additional guidance are provided through official channels, including a dedicated email contact and publicly available FAQ documentation.

Ensure vendor credibility and clearly document ROI and training outcomes; align training with workforce needs