Artificial intelligence is moving out of the computer lab and into coastal sensors, factory floors, and public health databases across Massachusetts.
The Healey-Driscoll administration and the Massachusetts AI Hub awarded $3,295,792 to five distinct projects targeting specific real-world challenges in public health, coastal protection, workforce training, manufacturing, and defense.
The latest round of grants brings the Massachusetts AI Hub’s total investment in applied AI projects to about $6.1 million. The five recipients are also contributing more than $1.1 million in matching support through academic and industry partners.
The funding flows through the MA Applied AI Models Innovation Challenge, a program launched in January 2025 to help researchers build specialized AI tools for specific industries. Rather than financing general-purpose systems, the initiative supports smaller, specialized models designed to solve concrete problems from data collection to real-world testing.
Targeting Coastal Flooding and Disease Outbreaks
Economic Development Secretary Eric Paley said the state wants its investments to help industries meet operational challenges while keeping responsible AI development in focus. The program supports projects that can strengthen the economy and help Massachusetts remain a leader in applied AI.
Protecting coastal infrastructure from rising waters claimed the largest single allocation in this funding cycle. The Atlantic Resiliency Innovation Institute received $958,550 to develop a predictive flood-risk system focused primarily on energy infrastructure.
The system integrates improved weather forecasts, sensor feeds, and computer models showing how flooding impacts critical facilities. The goal is to give people a clearer picture of where flooding could cause problems.
A separate project targets infectious disease tracking on a global scale. Boston University received $298,394 to build PandemIQ Llama, also known as the BEACON Platform. The open-access platform studies health information worldwide to help identify potential disease outbreaks, assess risks, and generate reports for public health officials.
Bristol Community College Develops AI Skill Evaluations
Bridging the gap between job seekers and employers forms the focus of another major grant. Bristol Community College secured $727,270 to develop an AI system capable of evaluating an individual’s practical skills by analyzing completed work samples.
Those evaluations are compared against industry skill standards to give employers a clearer picture of applicant capabilities while guiding schools on local business demands. The system aims to streamline hiring and pinpoint specific areas where targeted training could fill workforce shortages.
Inside industrial settings, automation is getting a visual upgrade. Harvard University’s Kempner Institute received $811,578 to develop Large Video Planner-Industrial, a system designed to teach robots new tasks by watching video footage of humans performing them.
Instead of requiring technicians to program every movement manually, robots learn from observation and adapt dynamically. Researchers hope this approach will lower the cost of automation and make it more accessible for small and midsize businesses in manufacturing, logistics, and recycling.
Counter-Drone Coordination
The final grant pushes applied AI into defense technology. The UMass Lowell Applied Research Corporation received $500,000 to build a platform that coordinates information from multiple sensors during counter-drone operations.
The system uses reinforcement learning—an AI approach that refines performance through experience—along with network optimization to help disparate robotics and defense systems communicate. The project also establishes a shared technology layer that operates independently of any single vendor.
Beyond these grant-funded projects, Massachusetts has deployed an AI virtual assistant on mass.gov that has handled an estimated 700,000 to 800,000 conversations across multiple state agencies, according to Chief Digital Officer Devyn Paros. State officials also launched a Constituent Experience Center of Excellence in June to improve online public services.
“By helping researchers build, test and refine domain-specific AI models, the Challenge moves innovative technologies closer to practical applications that can advance businesses and industries across Massachusetts and beyond,” said Sabrina Mansur, director of the AI Hub, in a statement.