AN ACT to APPROPRIATE FUNDS TO establish artificial intelligence hubs at select constituent institutions of the university of north carolinA and to appropriate funds to establish technology hubs at each constituent institution of the university of north carolina and for the north carolina collaboratory to establish a grant program for research projects on artificial intelligence.

The General Assembly of North Carolina enacts:

part i. artificial intelligence hubs PILOT

SECTION 1.(a)  No later than December 1, 2026, the Board of Governors of The University of North Carolina shall select up to eight constituent institutions of The University of North Carolina to serve as Artificial Intelligence Hubs (AI Hubs) in this State. At least one AI Hub shall be one of North Carolina's Public Historically Black Colleges and Universities or North Carolina's Historically American Indian University, the University of North Carolina at Pembroke. Each AI Hub shall convene industry and academia to ensure that artificial intelligence (i) generates economic growth for the State of North Carolina and (ii) protects the rights and liberties of the citizens of this State.

SECTION 1.(b)  There is appropriated from the General Fund to the Board of Governors of The University of North Carolina for the 2025‑2026 fiscal year the following sums for AI Hubs in this State:

(1)        Sixteen million dollars ($16,000,000) in nonrecurring funds to be allocated equally among constituent institutions selected for an AI Hub pursuant to this section, to establish AI Hubs, including necessary infrastructure. These funds shall not be made available to a selected constituent institution until that institution matches ten percent (10%) of the funds made available pursuant to this subdivision with non‑State funds.

(2)        Eight million dollars ($8,000,000) in recurring funds to be allocated equally among each constituent institution selected for an AI Hub pursuant to this section. These funds shall be used for operational support and personnel needed for the AI Hubs, including to establish an expert in residence position at each AI Hub.

part ii. technology hubs

SECTION 2.(a)  There is appropriated from the General Fund to the Board of Governors of The University of North Carolina the sum of seventy million dollars ($70,000,000) in nonrecurring funds for the 2025‑2026 fiscal year to be allocated to each constituent institution to establish a technology hub or support previously designated Artificial Intelligence (AI) Hub at the institution to encourage (i) technology innovation, (ii) workforce upskilling, (iii) entrepreneurship, and (iv) advanced manufacturing. These funds may be used for capital needs, marketing, personnel, programming, support services, local partnerships, and any other purpose necessary to establish the technology hub. Constituent institutions shall report to the Board of Governors on the departments, units, and schools included in the technology hub, and Board of Governors shall report this information to the Joint Legislative Education Oversight Committee no later than February 15, 2026.

SECTION 2.(b)  There is appropriated from the General Fund to the Board of Governors of The University of North Carolina for allocation to the North Carolina Collaboratory established by G.S. 116‑255, the sum of thirty million dollars ($30,000,000) in nonrecurring funds for the 2025‑2026 fiscal year to establish a grant fund for research projects on Artificial Intelligence (AI). To qualify for grant funding, a research project must focus on one of the following areas of scope:

(1)        Involve applied AI research to develop an application in one of the following priority areas:

a.         Education.

b.         Workforce development.

c.         Healthcare.

d.         Government.

(2)        Pertain to AI fundamentals and infrastructure by addressing core AI technologies (including, but not limited to, machine learning, natural language processing, and computer vision) and how the technologies contribute to advancing AI infrastructure.

(3)        Pertain to AI ethics and governance by addressing ethical considerations related to the use of AI and consideration of relevant AI risks and governance frameworks.

part iii. effective date

SECTION 3.  This act becomes effective July 1, 2025.