DLR AI Funding: A Few More Answers Before You Apply!

We've written about the state's AI Adoption Workforce Funding twice now, once when it launched and once walking through the application process. Since then the Department of Labor and Regulation put out an updated FAQ, and it settles a handful of questions we've been fielding around town. Here's what's new or worth knowing.

You can apply for more than one category at once. If your business wants a discovery session and staff awareness training, you don't have to file two separate applications and wait. Both can go on the same submission.

Category 2 doesn't require Category 1 first. If you already know where you want to use AI and just need help with training and implementation, you can go straight for the training funds. The discovery step is there if you need it, not a required first hoop.

Public sector and non-profits are eligible too. This isn't just for private businesses. If you run a city office, a school, or a non-profit, you qualify the same as anyone else.

Vendor quotes are fine for your application. You don't need a signed invoice in hand by August 7. An estimate from your consultant covering the cost and scope of the work is enough to apply with.

You still choose your own consultant. That part hasn't changed: the state doesn't assign one to you, and Dakota Intelligence has been building specifically for these funding categories since the program was announced. If you have questions about the program itself, DLR's employment programs team is the direct line: DLREmploymentPrograms@state.sd.us.

Mark your calendar for two deadlines, not one. Training still needs to wrap by June 30, 2027, but there's now a separate invoice deadline of July 30, 2027, one month after. Don't let that second date sneak up on you.

One thing that trips people up: training has to be future-dated. If you've already started or finished the work before your application is approved, it doesn't qualify. Apply first, then begin.

Applications are due August 7. Awards get decided August 25, with notifications by September 1.

If you want help figuring out which category fits your business, or want a second set of eyes on your application before you file, that's a conversation we're glad to have. Everything starts with a 20-minute phone call.

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