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South Dakota Department of Labor & Regulation

The Deadline Passed. The Help Didn't.

South Dakota's AI Adoption Workforce Funding closed its first application window on August 7. Here is where the program stands, what happens next if you filed, and what is still available if you didn't. The work itself never depended on the funding.

Status current as of September 3, 2026

This program is run by the SD Department of Labor and Regulation, not Dakota Intelligence. Questions about the funding itself can go straight to DLREmploymentPrograms@state.sd.us.

Three Funding Tiers

DLR's AI Adoption Workforce Funding is structured as a one-to-one cost share across three categories. The Category 1 window closed August 7, and the Category 2 follow-on window remains open through November 12 for businesses that were awarded Category 1 funding. The tiers below are still the right map for understanding the program, and for understanding what our work costs when no program is open at all.

$5,000 Cost-Share, 1:1

AI Business Discovery

Expert guidance to identify where AI can actually move the needle in your operation, before you spend a dime on tools.

$20,000 Cost-Share, 1:1

AI Training Implementation

Support to implement AI tools and put your team through hands-on, practical training so the tools actually get used.

$1,000/employee Up to $10,000 Total

AI Awareness

Free, basic AI awareness training for your team to build foundational knowledge and comfort with the technology.

DLR Funding × Dakota Intelligence Services

DLR funds the training and adoption work. Dakota Intelligence is one option for delivering it. Here's the direct line between what they'll help pay for and what we actually do, day to day, for South Dakota businesses.

DLR Funding Tier

AI Business Discovery

Up to $5,000

Dakota Intelligence Service

AI Business Discovery and Readiness • $2,400

The whole operation evaluated: staff interviews, current tooling, data practices, and team capacity, delivered as a prioritized adoption roadmap. This is the discovery work DLR is built to cost-share, and it is $2,400 whether the state pays half or you pay all of it.

DLR Funding Tier

AI Training Implementation

Up to $20,000

Dakota Intelligence Service

AI Training Implementation • $3,500

Hands-on build and training: automated pipelines, custom voice agents, and the practical setup that gets your team actually using AI day to day. Onsite days run $900 each and the monthly adoption retainer is $1,500, both quoted separately from the base program.

DLR Funding Tier

AI Awareness

$1,000/employee, up to $10,000

Dakota Intelligence Service

Staff Training and AI Ground Rules • from $297

Plain-language group training to build baseline AI comfort across your staff, paired with the AI Ground Rules document packet so your people know what is safe to put into a chatbot and what is not. Ask us if this fits your team, we'll tell you honestly.

Getting From Here to Funded

Employers choose their own training provider and apply directly to the state. For all inquiries about program details, eligibility, and reimbursement, go straight to the source: the SD DLR AI Adoption Funding page, or contact your local DLR office at DLREmploymentPrograms@state.sd.us.

If you filed for Category 1

  1. The Workforce Development Council reviews applications August 25. That is the state's step, not yours. Nothing is required from you in the meantime.
  2. Award notices moved to September 4. DLR pushed the decision date back from September 1, citing application volume, and says notifications go out by email to every applicant, award or not. Category 1 awardees also receive an invitation letter for the Category 2 round rather than having to watch the program page themselves.
  3. Category 2 closes November 12. That date is confirmed in writing by DLR as of August 6. The live state application form still displays November 25, so work to the earlier date.
  4. We scope the Category 2 engagement with you. Written plan, published price, before anything gets filed.

If you missed the window entirely

  1. Talk to us anyway, free. A 20-minute call costs nothing and tells you whether any of this is worth doing at full price.
  2. The price is the same either way. Discovery is $2,400 and Training Implementation is $3,500 whether the state reimburses half of it or you pay all of it. We never marked the work up because a program was open, so nothing has to come down now that one closed.
  3. Start smaller if the full engagement is too big right now. A $497 Workflow Audit on one process is a real place to begin, and the free Readiness Snapshot costs nothing at all.
  4. We will tell you straight if a future window opens. Programs like this sometimes run again. We are not going to promise one that has not been announced.

See every price we charge, plus our published hourly rate card →

A Few Honest Notes

Dakota Intelligence does not administer this program.

DLR runs the funding. We're one of the businesses you could choose to work with if you decide to use it, nothing more. Employers choose their own consultant and get reimbursed. There is no pre-approved vendor list. Funding decisions, eligibility, and reimbursement are entirely DLR's call.

Program questions go to DLR, not us.

For all inquiries about program details, eligibility, deadlines, and reimbursement, check the SD DLR AI Adoption Funding page or contact your local DLR office at DLREmploymentPrograms@state.sd.us. We'll help you scope and describe the work. The state answers the program questions.

Where the dates actually stand.

The Category 1 application window closed August 7, 2026. The Workforce Development Council acted on applications August 25, and DLR has moved award notifications from September 1 to September 4, citing application volume. Notifications go out by email to every applicant regardless of outcome, and the state has said award recipients and contract amounts will be publicly available. Whatever gets funded has to be completed by June 30, 2027. The Category 2 follow-on window is confirmed open through November 12, per written confirmation from DLR dated August 6. Worth knowing: the live state application form still displays November 25 for that second window. DLR has confirmed November 12 is the correct date and that the form cannot be edited. Work to November 12.

Funded or Not, the Work Is the Same

No pitch, no pressure. Start with the free AI Readiness Snapshot: it takes minutes, and it gives us both a real picture of where your operation stands before we talk about anything costing money.

Start Your Free Readiness Snapshot → Or Schedule a Call →
📍 Mitchell, South Dakota