Michigan is taking bold steps to become a national leader in artificial intelligence and workforce transformation. On May 29, 2025, the state’s Department of Labor and Economic Opportunity (LEO) unveiled the “AI and the Workforce Plan,” a sweeping strategy to prepare Michigan’s economy and labor force for the rise of AI technologies. The plan aims to position the state to gain up to $70 billion in economic impact and create 130,000 good-paying jobs over the next decade.
The initiative builds on the state’s existing Workforce Plan and includes three strategic pillars: investing in AI-related skill development, guiding the changing workforce landscape, and helping businesses—especially small and medium-sized enterprises—adopt AI tools and practices. With up to 2.8 million jobs in Michigan expected to be reshaped by AI, the plan seeks to ensure the state not only adapts but thrives in the evolving economy.
“Working with AI technology helps prepare our workforce to lead with the skills and tools Michiganders need to thrive in a rapidly evolving economy,” said Lt. Gov. Garlin Gilchrist II.
In sectors like manufacturing, where 75% of jobs will require some upskilling due to AI and automation, the plan outlines a proactive approach. It emphasizes embedding AI into education systems, providing flexible and real-world training, and expanding access to underserved communities to support inclusive economic mobility.
“Michigan needs to take action now to make sure we stay ahead in the future,” said LEO Director Susan Corbin. “Our future competitiveness is built upon how we learn, leverage and lead in building skills for an AI-enabled economy.”
The plan also prioritizes business adaptation. Many smaller firms lack resources to adopt AI, but the state will support them through technical assistance and shared tools. “AI continues to open up opportunities that didn’t exist before,” said Brian Calley, CEO of the Small Business Association of Michigan. “It’s imperative to use it as a tool to support creativity and customer service.”
Education remains a cornerstone. “Preparing Michiganders for an AI-enabled economy means investing in education at every stage,” said Dr. Beverly Walker-Griffea, Director of MiLEAP. “We’re committed to helping people gain the skills and credentials that lead to good-paying, high-demand jobs.”
With recent investments like a $1.2 billion AI research facility outside Ann Arbor and Michigan’s standing as a top-ten state for R&D, economic leaders see a historic opportunity. “We can and will lead the emerging AI economy,” said Matt McCauley of the Michigan Economic Development Corporation.
Need Help?
If you’re concerned or have questions about how to navigate the Michigan’s AI workforce regulations or the general AI regulatory landscape, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight and ensure you’re informed and compliant.
