The New Jersey Senate Legislative Oversight Committee hearing on October 21, 2024, provided a forum to explore how artificial intelligence (AI) is defined, the need for an integrated and expanded AI ecosystem, and the impact of AI and generative AI on New Jersey. Chaired by Senator Andrew Zwicker, the committee heard testimony from state leaders and private partners on navigating AI as a powerful driver of new economic growth while ensuring ethical stewardship of AI innovation.
Most notably, Tim Sullivan, Chief Executive Officer of the New Jersey Economic Development Authority (NJEDA), highlighted two lanes of economic potential. The first is the AI industry, with language models and data centers driving economic growth. The second is AI’s application in industries such as pharmaceuticals, clean energy, fusion, and wind, all of which present significant opportunities for New Jersey. NJEDA advocated for recent legislation promoting the Next New Jersey Program, an initiative to attract investment into New Jersey’s AI industry, offering up to $500 million in tax credits for AI businesses. Access to computing power, a critical and scarce resource, was also emphasized, highlighting the need to leverage investments in this area. New Jersey’s strategic location and preferential access were noted as key advantages.
Judith Sheft, Executive Director of the New Jersey Commission on Science, Innovation and Technology, discussed the agility of start-ups and noted that they are well-positioned to address geostrategic challenges. Federal grants totaling more than $20 million have facilitated collaboration between start-ups, established companies, government, and higher education institutions. For example, the Rowan Innovation Venture Fund made a $200,000 investment in MRIMath LLC, a Rowan University-affiliated startup that uses AI to improve brain tumor detection. Additionally, Rutgers University startup NeuroTechR3 announced a research collaboration with the Kessler Foundation to support stroke rehabilitation and other neurorehabilitation technology developments to take its patented research to commercialization. Sheft emphasized that many federal grants exist and that bringing together multiple stakeholders to apply for these specific grants—while seeking matching funds from the State of New Jersey—will help build an ecosystem that addresses AI’s societal impact.
Christopher Rein, New Jersey’s Chief Technology Officer, highlighted the creation of an Artificial Intelligence Task Force aimed at addressing questions surrounding AI’s use while balancing capabilities, capacity, and ethical considerations. The state’s Office of Innovation acts as a partner and catalyst to modernize approaches, focusing on analyzing algorithms and data. While the promise of AI is tremendous, ensuring the safety and security of data is equally critical, and addressing the threats of deep fakes and other unethical usage of AI is a top priority. Rein emphasized the importance of merging efforts across state agencies and focusing on governance and quality control so that “AI hallucinations,” where AI models produce false or misleading information, do not disrupt and impede progress in New Jersey.
Most use cases for AI will involve human oversight and AI tools to improve staff efficiency and service quality. Rein cited California, which has implemented innovative AI-related work in government transparency, and Minnesota, which completed a cost-savings analysis to avoid a top-down approach as examples. New Jersey has been efficient in offering improved public services, positioning the state for significant economic growth and activity.
This hearing is the first in a series of meetings on AI, further demonstrating New Jersey’s ongoing commitment to an innovative economy and adaptability as AI evolves. Future hearings will focus on workforce development and other priorities to best position New Jersey’s key stakeholders and thought leaders toward a coordinated vision and organized stewardship of AI innovation.
As the legislative process progresses, further developments are anticipated to significantly shape the AI landscape and the evolving role of policymakers. Law firms with sophisticated and effective government affairs practices, particularly those with strong connections on both sides of the aisle in the legislature, will be instrumental in navigating this critical juncture in AI discussions.
