Committee backs study to help small businesses adapt to AI, members raise funding and staffing concerns

The Commerce Committee advanced SB 417 to the floor with votes held open until 3 p.m.; the bill would require the Department of Economic and Community Development to develop a plan to establish an artificial intelligence small-business program.

The chair described the measure as an initial study to create a platform and supports so small and medium-sized businesses can compete as AI-related technology and regulation develop. "Our deepest concern is the growth and economic growth of this state," the chair said, arguing the measure aims to make sure smaller players — including minority-owned businesses — are not shut out as AI adoption accelerates.

The co-chair and several members emphasized that smaller firms and supply-chain partners are especially vulnerable and that any program should include a component for upskilling and reskilling the workforce. The co-chair said the MIF program model and bonding were under discussion as possible capitalization mechanisms and mentioned a $20 million model discussed in committee conversations.

Members pressed for details on expected costs and funding sources. One representative asked whether the bill would carry new language to the floor or be amended later; another said it is hard to build an effective AI program without sufficient funding or in-house expertise and urged caution.

The clerk called the roll on SB 417; votes were recorded and the clerk again said votes would be held open until 3 p.m. The transcript does not include a completed committee tally.

Committee leaders said the language could be adjusted ahead of floor action depending on funding availability and stakeholder discussions.