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South Dakota Sees AI as Workforce Ally, Not Threat
South Dakota’s Secretary of Labor and Regulation, Marcia Hultman, cautions that the state’s impressively low unemployment rate—2.3 % today and as low as 1.8 % historically—does not shield its workforce from the ripple effects of artificial intelligence.
In a May 15 interview, Hultman explained that AI can streamline processes and free workers’ time, but she does not expect it to replace people in the workplace. She described the technology’s primary benefit as handling routine, systematic tasks, creating a "net gain" where AI fills gaps in the labor market instead of eliminating jobs.
To date, South Dakota has seen no layoffs directly tied to AI. The department’s rapid‑response team is ready to meet with affected businesses to discuss training and other support services should a layoff arise.
Reskilling and upskilling remain the department’s core strategy. Hultman said the focus is "really on reskilling and upskilling" so that workers possess the skills needed for roles that still require a human touch. To support this effort, the state offers free AI literacy courses through the federal Make America AI‑Ready initiative. Participants text "READY" to 20202 and receive a seven‑lesson, text‑based course that introduces AI concepts and tools.
The department also promotes Google’s Grow with Google training certificates, which provide free courses covering AI fundamentals and practical applications. Hultman highlighted the "AI 101" text service as a low‑barrier entry point for business owners and employees new to the technology.
Industry impacts vary. Small and mid‑size businesses in South Dakota are only beginning to explore AI, whereas larger companies are likely further along. Hultman identified financial services and banking as "low‑hanging fruit" because those sectors rely heavily on data analysis—an area where AI can operate efficiently. The department has not yet observed AI‑related layoffs in these industries.
Federal policy shapes the state’s approach. The U.S. Department of Labor’s Make America AI‑Ready initiative provides the text‑based course that South Dakota uses, and the department’s role is to align state workforce services with the federal program. Hultman noted that the department does not regulate AI deployment; its focus is on helping businesses and workers adapt.
At present, South Dakota’s workforce services are expanding AI training while monitoring the market for potential disruptions. No AI‑related layoffs have been reported, and the department continues to engage with businesses to assess readiness. The next steps involve scaling up reskilling programs, monitoring industry adoption, and maintaining a dialogue between state agencies, employers, and workers to ensure AI enhances, rather than erodes, employment opportunities.
In a May 15 interview, Hultman explained that AI can streamline processes and free workers’ time, but she does not expect it to replace people in the workplace. She described the technology’s primary benefit as handling routine, systematic tasks, creating a "net gain" where AI fills gaps in the labor market instead of eliminating jobs.
To date, South Dakota has seen no layoffs directly tied to AI. The department’s rapid‑response team is ready to meet with affected businesses to discuss training and other support services should a layoff arise.
Reskilling and upskilling remain the department’s core strategy. Hultman said the focus is "really on reskilling and upskilling" so that workers possess the skills needed for roles that still require a human touch. To support this effort, the state offers free AI literacy courses through the federal Make America AI‑Ready initiative. Participants text "READY" to 20202 and receive a seven‑lesson, text‑based course that introduces AI concepts and tools.
The department also promotes Google’s Grow with Google training certificates, which provide free courses covering AI fundamentals and practical applications. Hultman highlighted the "AI 101" text service as a low‑barrier entry point for business owners and employees new to the technology.
Industry impacts vary. Small and mid‑size businesses in South Dakota are only beginning to explore AI, whereas larger companies are likely further along. Hultman identified financial services and banking as "low‑hanging fruit" because those sectors rely heavily on data analysis—an area where AI can operate efficiently. The department has not yet observed AI‑related layoffs in these industries.
Federal policy shapes the state’s approach. The U.S. Department of Labor’s Make America AI‑Ready initiative provides the text‑based course that South Dakota uses, and the department’s role is to align state workforce services with the federal program. Hultman noted that the department does not regulate AI deployment; its focus is on helping businesses and workers adapt.
At present, South Dakota’s workforce services are expanding AI training while monitoring the market for potential disruptions. No AI‑related layoffs have been reported, and the department continues to engage with businesses to assess readiness. The next steps involve scaling up reskilling programs, monitoring industry adoption, and maintaining a dialogue between state agencies, employers, and workers to ensure AI enhances, rather than erodes, employment opportunities.
