Directs the Board of Governors of The University of North Carolina, no later than December 1, 2026, to select up to eight constituent institutions of The University of North Carolina to serve as Artificial Intelligence Hubs (AI Hubs). At least one AI Hub must be in 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 must 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 the State.
Appropriates from the General Fund to the UNC Board of Governors

$16 million for 2025-2026 to establish AI Hubs, including necessary infrastructure. Funds must be allocated equally among constituent institutions selected for an AI Hub. To receive funds, an institution must provide a 10% match using non-state funds.
$8 million in recurring funds for operational support and personnel, to be allocated equally among the constituent institutions selected for an AI Hub.

Appropriates from the General Fund to the UNC Board of Governors of $70 million for the 2025-2026 fiscal year to be allocated to each constituent institution to establish a technology hub or support a previously designated AI Hub at the institution to encourage (i) technology innovation, (ii) workforce upskilling, (iii) entrepreneurship, and (iv) advanced manufacturing. The 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 must report to the Board of Governors on the departments, units, and schools included in the technology hub, and the Board of Governors must report this information to the Joint Legislative Education Oversight Committee no later than February 15, 2026. 
Appropriates from the General Fund to the UNC Board of Governors for allocation to the North Carolina Collaboratory established by GS 116-255, $30 million for the 2025-2026 fiscal year to establish a grant fund for research projects on AI. To qualify for grant funding, a research project must focus on one of the following areas of scope:
(1) AI research to develop an application in one of the following priority areas: education, workforce development, healthcare, or government.
(2) 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) AI ethics and governance by addressing ethical considerations related to the use of AI and consideration of relevant AI risks and governance frameworks.
Effective July 1, 2025.