New Jersey has unveiled the AI Innovation Challenge, a statewide initiative aimed at fast-tracking artificial intelligence solutions that address social and public-sector challenges across the state.

The 12-month program is backed by the New Jersey Economic Development Authority as part of Governor Phil Murphy’s broader AI Moonshot agenda, first outlined in his January 2024 State of the State address. 

Under the challenge, startups and teams will receive access to funding, mentorship, and technical resources to develop AI-driven software that improves efficiency, modernizes public services, and enhances quality of life for New Jersey residents. The program will be operated by Plug and Play, a Silicon Valley–based venture capital and innovation platform, in partnership with NJEDA.

The initiative builds on New Jersey’s expanding AI ecosystem. Earlier this month, the New Jersey Artificial Intelligence Hub — founded with Princeton University, the State of New Jersey, Microsoft, and CoreWeave — announced plans to launch an AI Accelerator in West Windsor early next year, also powered by Plug and Play.

Up to $3.34 million in total funding will be awarded through the AI Innovation Challenge. As many as 10 teams or companies will share an initial $1 million grant pool, with additional funding of up to $2.3 million available after a Demo Day scheduled for March 27. Applications opened on December 15 and will close on January 19, with initial winners announced January 29.

Participants are encouraged to build solutions using data from New Jersey’s publicly available data hub, NJOIT Open Data Center, and must focus on AI technologies such as machine learning, autonomous decision-making, data analytics, natural language processing, computer vision, or generative AI. To qualify, proposed solutions must demonstrate measurable efficiency gains or enable new, AI-driven innovation tailored to New Jersey’s needs.