Angela E. Juneau Authors Article "New Jersey’s Bold Bet on Artificial Intelligence"
Artificial intelligence (AI) is being implemented at a pace few anticipated or planned for. It is inevitable that government will have a role in both its adoption and regulation. Recognizing that the public sector may be “a day late and a dollar short” to play in the AI sandbox, New Jersey is taking steps to partner with the private sector to create AI-related opportunities. No doubt the State’s financial investment in AI will enhance its understanding of this new frontier, which will be useful when the State invariably gets around to regulating it. But in the meantime, New Jersey businesses should be aware of immediate opportunities to obtain public investment in their AI endeavors.
In the last year, Governor Phil Murphy has taken two major steps toward making New Jersey a national leader in AI through transformative legislative initiatives that channel significant resources into the State’s AI ecosystem. These measures seek to attract investment, create jobs, and establish the Garden State as the east coast hub for cutting-edge technology.
In July 2024, Governor Murphy signed into law the Next New Jesey Program (A4558/S3432). This program, a $500 million tax incentive initiative designed to spur private-sector investment in AI, is administered by the New Jersey Economic Development Authority (NJEDA) and funded by the Aspire Program. It offers tax credits of up to $250 million per project to eligible businesses primarily engaged in AI or large-scale AI data centers. To be eligible, at least 50% of a company’s employees or revenue must be AI-related, and the company must make a minimum capital investment of $100 million plus the creation of 100 new full-time jobs.
Funding is also contingent upon collaboration with New Jersey-based research universities, incubators, or accelerators. This requirement will incentivize collaboration between industry and academia, which is at the forefront of New Jersey’s growing AI sector: this past March, Princeton University partnered with the State and industry leaders Microsoft and CoreWeave to create the NJ AI Hub, a space dedicated to foster AI innovation.
In March 2025, the State took its second major step: the NJEDA approved the AI Innovation Challenge Administration Grant Program, which complements the Next New Jersey Program by promoting grassroots innovation. It allocates $3.8 million in grant funding to an administrator tasked with running a statewide AI Challenge. The goal is to engage startups, researchers, and civic organizations in developing AI-driven solutions for public and social good. It emphasizes solving government and societal challenges through AI.
New Jersey’s strategic vision is working. In a recent nationwide report released by Code for America on AI readiness, New Jersey was one of just three states designated as having “Advanced” AI readiness. And New Jersey’s status as an AI leader shows no signs of slowing: in early December 2025, Senator Andy Kim announced at a Rutgers University symposium his intent to build an Einstein Corridor in New Jersey that will allow the state to maximize its technology potential by supercharging investment and innovation.
