high tech
Written by Carlos Ivan Merino and Jacques Ramirez December 30, 2025
New Jersey is rapidly establishing a reputation in the artificial intelligence revolution, with independent assessments now recognizing New Jersey as one of a small group of leaders in AI readiness, with the necessary policy, institutional, and technical capacity to move quickly as the technology matures. This success gives lawmakers a clear choice as they conclude the lame-duck session. Either advance New Jersey’s AI advantage with pro-innovation policies, or undermine that advantage by rushing through sweeping and restrictive rules that will discourage investment and experimentation.
New Jersey’s emerging AI leadership is hard to ignore. The state created the New Jersey AI Hub to bring Princeton University, Microsoft, CoreWeave, and public partners together under one roof, committing more than $72 million to investments in high-end computing, lab space, and training programs. Microsoft then selected the hub as one of only two locations in the world to launch its new Discovery platform for AI-driven scientific research, placing New Jersey at the center of the next wave of breakthroughs. The state is expanding its commitment to the startup and innovation economy by establishing a new $20 million NJ AI Hub Fund for startups in parallel with the Next New Jersey Program – AI, which provides up to $500 million in tax credits to eligible AI businesses investing in New Jersey.
Other states are moving in very different directions. In places like California, lawmakers have spent the past year advancing broad, prescriptive AI proposals aimed at regulating how rapidly evolving technology works and assigning new responsibilities based on hypothetical doomsday scenarios of what the technology can do, rather than how it is actually used. While these bills may grab headlines, they also create fundamental uncertainty for employers looking to put AI to practical use today, and risk pushing the next wave of investment and hiring to other states.
The pastoral state does not need to copy that pattern. The state has already demonstrated that it can view AI as an economic opportunity while taking its risks seriously. Instead of rushing through new regulations, we can pass policies that continue to strengthen our innovation economy. S4253 establishes the Artificial Intelligence Innovation Partnership, comprised of independent nonprofit organizations dedicated to advancing emerging AI technology businesses and fostering a supportive and collaborative innovation ecosystem across New Jersey. By routing state support through these on-the-ground nonprofits, this bill would provide AI startups and employers with a dedicated ally to help them establish, sustain, and expand in New Jersey.
How we approach AI regulation will be most important to small technology companies and small employers, who make up a large part of New Jersey’s economy. Large companies with operations across multiple states can hire large legal teams and develop custom compliance systems. If New Jersey turns AI into a dense web of state-specific duties and new responsibilities, those small businesses will be the first to leave or decide their next stage of growth should take place elsewhere.
None of this means New Jersey should ignore real risks. There is a role for targeted guardrails when AI is used to commit fraud, enable discrimination, or cause other tangible harm to people. States are already at the forefront of enforcing these protections. Rather than trying to pass a blanket AI law that dictates how all models are built and trained, the right thing to do is to apply existing consumer protection and safety laws, and update them as necessary, to clearly cover AI-enabled conduct. A better way would be to rely on the models New Jersey has already begun: investing in shared infrastructure, supporting startups, and using targeted partnerships.
New Jersey has done this before. From Bell Labs to the rise of the state’s biopharmaceutical and medical technology corridors, we have repeatedly translated scientific advances into new industries and middle-class careers. Artificial intelligence is the next chapter in that story. Policymakers will decide whether to further strengthen New Jersey’s leadership in AI or undermine it with heavy-handed regulation. Rather than trying to freeze this technology, they should choose to keep New Jersey’s long history of innovation alive by passing legislation that strengthens the AI ecosystem and fosters responsible adoption.
Carlos Iván Merino is president of the New Jersey chapter of the American Innovators Network, and Jacques Ramirez is an economic policy research analyst at the New Jersey Chamber of Commerce.
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