Marcia Hultman

Cabinet Secretary

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Workforce Development Competitive Funding for AI Adoption

It is increasingly important for businesses to leverage Aritificial Intelligence (AI) and train their employees to use it, as AI has the potential to enhance efficiency and help organizations stay competitive in a rapidly evolving economy. When employees understand how to use AI tools effectively, they can focus on higher-value work that drives innovation and growth.

Through financial assistance for a discovery session, employee training, or improving your employee’s basic awareness of AI, the South Dakota Chamber of Commerce and Industry, Workforce Development Council, Department of Labor and Regulation (DLR), and the Governor’s Office of Economic Development are seeking to assist businesses with advancing AI for their workforce.

The following guidelines outline key eligibility requirements, important deadlines, and upcoming opportunities for businesses interested in participating in South Dakota’s AI training initiative.

  • Application
    • Application must be completed and submitted electronically
    • Deadline is Aug. 7, 2026
  • All financial assistance awards will be given to the business
  • Businesses must have a physical presence in South Dakota
  • The training must be completed by June 30, 2027
  • Award recipients and contract amounts will be publicly available
  • Those interested can learn more during the Workforce Knowledge Series webinar on July 9, 2026
  • The South Dakota Workforce Development Council will take action to approve applications on Aug. 25, 2026
  • Award recipients will be notified of an award decision by Sept. 1, 2026

Award recipients will be notified of an award decision by Sept. 1, 2026. Formal agreements will be established between DLR and the business. View agreement terms.


Category 1: Artificial Intelligence Business Discovery


Interested in implementing AI, but unsure of where it can best help your business? Start with this category.

  • DLR will provide a one-to-one cost share with the business for the discovery session. DLR’s payment to the business will not exceed 50% of the total cost or $5,000 as verified by the third-party consultant.
  • Required documentation for payment:
    • Invoice from the third party describing the discovery process, the dates of the meetings, the tools to be implemented, and the anticipated return on investment
    • Estimated cost and timeline to implement
    • Verification of a paid invoice from the business to the consultant
    • If funds are available, awardees can submit a Category 2 application no later than Nov. 25, 2026, to receive funding to proceed with AI training implementation by June 30, 2027
    • Final report

Category 2: Artificial Intelligence Training Implementation


Do you know what AI tools are needed to help your business advance and remain competitive, but your team needs training on these tools? Start with this category.
  • DLR will provide a 1:1 cost share with the business for the employee’s training expenses. DLR’s payment to the business will not exceed 50% of the total training cost or $20,000 as verified by the third-party training provider.
  • Required documentation for payment:
    • Invoice from the third-party training provider describing the training, itemizing the cost of the training, attendees, dates of the training, and completion certificates
    • Verification of a paid invoice from the business to the training provider for the full cost
    • Final report

Category 3: Artificial Intelligence Awareness


Interested in free basic AI awareness training for your employees? Start with this category.


Questions?

Please email us with questions.

Questions?