Michigan is taking bold steps to prepare its workforce for the rapidly evolving age of artificial intelligence. The Department of Labor and Economic Opportunity (LEO) has launched the AI and the Workforce Plan, a strategic initiative designed to upskill workers, modernize training infrastructure and support businesses adapting to an AI-driven economy.
According to Lightcast’s July 2025 report Beyond the Buzz: “Postings that mention at least one AI skill advertise salaries 28% higher than those who do not.”
LEO’s forward-looking plan aims to safeguard existing jobs and open pathways to higher-quality roles and greater economic mobility for Michiganders -- especially in skilled trades and manufacturing.
Strategic pillars guiding Michigan’s AI workforce evolution:
- Skill development tailored for the AI economy. Embedding AI skills into education and ensuring all communities have access will help Michigan boost economic mobility and shape the future workforce.
- Guiding workforce adaptation for knowledge and skilled trade workers. Preparing workers with adaptable skills and clear career pathways will enable Michigan to lead this transition. “Michigan’s ability to stay competitive in an AI-driven economy depends on how well it builds and adapts its workforce through modern, accessible and real-world training,” explained Susan Corbin, director of the LEO.
- Supporting businesses to adapt effectively. Providing technical assistance and shared tools helps small and medium-sized businesses adopt AI technologies and thrive in an ever-evolving economy.
“Our AI and the Workplace plan is adding to our strategic approach to build an equitable, future-ready economy,” Corbin said. “We are fortunate to have forward-thinking partners in this space -- such as the Michigan Manufacturing Technology Center -- that have many activities that align with the plan to help spur AI adoption.”
More than job replacement: Prioritizing upskilling and equity
A key focus is ensuring workers aren’t just retrained for direct job replacements but upskilled into better, adjacent roles in growing industries. This is especially important for manufacturing, where technologies evolve rapidly.
“This includes preparing workers for adjacent roles in growing sectors, boosting digital fluency and developing cross-cutting competencies like critical thinking and adaptability,” Corbin said.
To stay nimble, LEO will use real-time labor market data to identify skill adjacencies and verify employer needs, building a responsive workforce infrastructure.
The plan prioritizes accessible training across underserved and rural communities, embedding AI skills into existing education programs for roles that are AI-intensive or resilient.
“It means investing in broad community access to ensure no region or population is left behind.”
Programs like Michigan Reconnect, the Michigan Achievement Scholarship and Registered Apprenticeships already help residents earn credentials aligned with an AI-enabled economy. Partnerships with the Office of Rural Prosperity ensure no community is left behind.
Modernizing training through AI technology
Michigan is making significant investments in AI-powered training platforms to better support workers and improve outcomes.
In December 2024, the state awarded a $100 million Strategic Site Readiness Grant to the University of Michigan to help establish a $1.25 billion high-performance computing facility in partnership with Los Alamos National Laboratory. This project is expected to create at least 200 high-wage, AI-focused research jobs and become a national hub for work in national security, energy resilience and advanced computing.
“Michigan’s AI workforce strategy is part of a broader ecosystem approach -- linking AI research, business innovation and frontline workforce development,” said Corbin. “AI-powered platforms can provide real-time job matching, career navigation and skills gap analysis, freeing up staff to focus on more personalized support services.”
These innovations expand the reach and efficiency of existing systems, improving outcomes without adding extra burden. Initiatives like the University of Michigan’s computing center highlight Michigan’s commitment to pairing AI infrastructure with workforce transformation.
“These projects are not isolated investments but catalysts for systemic shifts that will elevate workforce service delivery, curriculum design and career navigation across the state,” Corbin said.
Supporting small and medium-sized businesses
Small and medium-sized businesses -- vital to local economies -- often face hurdles in accessing AI technologies. Michigan’s plan offers technical assistance, shared AI tools and peer learning to help these businesses adapt.
“We will be actively working to help small and medium-size businesses become aware of the opportunities to spur growth, while ensuring their workforce is able to thrive, too,” Corbin said. “Early adoption will be a key competitive advantage for many companies.”
Collaboration with organizations like the Michigan Manufacturing Technology Center, Small Business Development Center and Michigan Works! will facilitate personalized local support.
Libraries can also provide AI tools and digital literacy training, vital for bridging the divide, especially in rural areas.
“As trusted community institutions, they are well-positioned to bridge the digital divide by offering AI-powered tools and digital literacy training,” Corbin said. “Ongoing efforts -- such as the Library of Michigan’s AI Capacity-Building Cohort for public library professionals -- highlight the opportunity to engage libraries more fully in statewide AI readiness.”
Corbin said LEO is also investigating how to leverage the Going Pro Talent Fund to help companies adopt new technologies, which would ensure their workers get new skills and retain their jobs.
Measuring progress and impact
Michigan has set ambitious measurable goals for this plan:
- Raise working-age adults with certificates or degrees from 51% to 60% by 2030.
- Move 75,000 households into the middle class by 2027.
- Lead the Midwest in labor force participation.
- Unlock $70 billion in economic impact and create 130,000 quality jobs.
“According to the Brookings Institution, the Detroit region has promising signs that AI readiness is well underway -- and we believe the plan will accelerate readiness in Michigan,” Corbin said.
A defining moment for Michigan’s future
Success depends on deep collaboration across education, government, business and community organizations.
“Now’s the time for all of us to work together and identify opportunities to invest in our workforce and the needs of tomorrow,” Corbin said.
Rather than fearing AI, Michigan embraces it as an opportunity to uplift workers, modernize systems and build a more inclusive economy.
“By thoughtfully integrating AI into education, training and business support systems, the state can equip its residents with the skills needed for today’s jobs and tomorrow’s opportunities,” Corbin said.
With LEO’s plan, Michigan is not simply adapting to the future of work, it is shaping it.
“With the right approach, Michigan won’t just respond to AI’s rise -- it can lead it.”
To learn more about the AI and the Workforce plan, click or tap here.