SB 619 establishes North Carolina's AI Academic Support Grant Program, providing $10,060,560 in recurring funds for public school districts to contract with Khan Academy for its Khanmigo AI tool. The program directly affects public schools serving grades 6-12, requiring districts to use funds exclusively for Khanmigo licenses, associated teacher training, and secure class rostering systems approved by the state. Schools must annually evaluate Khanmigo's use and report metrics like student interactions, teacher usage, and impacts on learning outcomes to the legislature. A separate study by the Office of Learning Research will measure Khanmigo's effectiveness on student performance, with results due by April 2028.
This bill requires North Carolina public schools to teach age-appropriate artificial intelligence (AI) literacy from kindergarten through 12th grade starting in the 2025-2026 school year. It mandates state standards covering basic AI concepts, real-world uses, ethical issues like privacy and bias, and responsible AI use - such as preventing academic dishonesty. The standards can be integrated into existing computer science courses for middle and high school students. The bill directly affects all North Carolina public schools and their curriculum planning. It focuses on equipping students with foundational knowledge about AI systems and their societal impacts, rather than creating new programs or funding.
SB 735 establishes the North Carolina Artificial Intelligence Innovation Trust Fund to provide grants and financial support for companies developing or deploying AI in key industries, as well as AI entrepreneurship programs through partnerships with research institutions. The fund prohibits spending on projects involving mass surveillance, discriminatory profiling, or deceptive digital content intended for fraud or electoral interference. Funds will come from state appropriations, interest, and other allowable contributions, with the Secretary of Commerce managing disbursements. The bill defines key terms like "covered model" to guide future regulatory frameworks but focuses on funding innovation rather than direct oversight.
SB 747, titled "AI Learning Agenda," creates North Carolina's Office of Artificial Intelligence Policy within the Department of Commerce and establishes an AI Learning Laboratory program. The bill requires state agencies to inventory all AI tools they use or plan to use by 2026, including details on vendor, function, data sources, and risks. Businesses can apply to participate in the Learning Laboratory, where they may receive reduced penalties during testing (called "regulatory mitigation") in exchange for sharing data and findings with the Office. The Office must publish annual reports on AI policy findings and recommend legislation to address regulatory gaps or barriers.
SB 738 establishes North Carolina's Digital Content Provenance Initiative to combat misinformation from AI-generated content. It requires state agencies to implement cryptographic verification (like digital watermarks) for all official communications, create a public registry tracking content origins, and develop public education tools to help residents identify synthetic media. The $500,000 allocated for Phase I (effective July 2025) will fund technical standards, partnerships with tech companies, and election-related safeguards. This directly affects state agencies creating digital content and aims to protect residents' ability to verify information during elections and public discourse.
HB 1004 proposes to allocate $16 million (one-time) and $8 million annually to establish up to eight Artificial Intelligence Hubs at UNC campuses, including at least one HBCU or UNC Pembroke, requiring institutions to match 10% with non-state funds. It also appropriates $70 million for Technology Hubs at all UNC campuses to drive innovation, workforce development, and entrepreneurship, plus $30 million for research grants focused on AI applications in education, healthcare, ethics, and infrastructure. The bill directly affects UNC system campuses, researchers, and students through funding for hubs, infrastructure, and project grants. It requires reporting on hub activities and becomes effective July 1, 2025, pending legislative approval.
HB 723 establishes the North Carolina Technology Coalitions Strategic Support Fund, allocating $10.5 million to support regional technology coalitions focused on sectors like AI, semiconductors, and cybersecurity. The fund provides grants to eligible organizations (including nonprofits, local governments, and academic institutions) operating within North Carolina to strengthen regional economic growth through coalition collaboration. Key provisions include funding for workforce training, market analysis, and matching funds to leverage private or federal investment, while requiring grantees to maintain operations in-state and avoid duplicate funding. The fund becomes effective July 1, 2025, with administration managed by the Department of Commerce’s Office of Science, Technology, and Innovation.
HB 934, the "Artificial Intelligence Regulatory Reform Act," establishes new regulations related to artificial intelligence and deepfakes. The bill creates a new criminal offense for the unlawful creation or distribution of "deepfakes" - images or videos created to deceive - without consent, when done to cause harm or influence an election. It also grants civil liability immunity to developers of artificial intelligence products when a "learned professional" uses their product to provide services. Under this provision, the learned professional would be solely responsible for any damages to their client resulting from errors generated by the AI product. This legislation affects individuals who create or distribute deepfakes, as well as AI product developers, licensed professionals, and their clients.
