Senate Bill No. 417 mandates the Department of Economic and Community Development (DECD) to create a plan for establishing an artificial intelligence (AI) small business program. The bill defines "artificial intelligence" as a machine-based system that influences environments through predictions, recommendations, or decisions, and "artificial intelligence technology" as any computer system or application that utilizes AI. The purpose of the program is twofold: to incentivize small businesses to adopt AI to enhance productivity and product/service quality, and to foster a competitive environment for the development and deployment of AI technologies.

The DECD is required to report on this plan by January 1, 2027, including any legislative recommendations necessary for implementation. The bill incurs a one-time cost of up to $150,000 in FY 27 for consulting services needed to develop the plan. The fiscal impact is noted as a cost to the General Fund, with no anticipated municipal impact. The bill has received favorable approval from the Commerce Committee, reflecting a unanimous vote.