Newswise — The Center for Artificial Intelligence in Business at the University of Maryland Robert H. Smith School of Business has received $1.031 million in federal funding for its efforts to help small businesses implement AI solutions to improve efficiency. The grant was supported by U.S. Rep. Glenn Ivey (D-Md.), who presented the funds at an event in College Park on March 24.
The Smith School, with support from the Maryland Small Business Development Center (SBDC), will use the funding to analyze existing AI solutions, develop new programs, and offer online courses and workshops for small businesses across the state. Smith students participate in every step of this effort. The initiative will be led by Professor Balaji Padmanabhan, Director of the Center for AI in Business and Associate Dean for Strategic Initiatives, and Tejwanshu Anand, Clinical Professor and Academic Director of the Master of Information Systems and AI Program.
“Many small business owners don’t know where to start when it comes to AI,” says Padmanabhan. “But to survive and thrive, they have to be careful, they have to be innovative, and they have to be resilient. And AI can help all of that. Small businesses drive more than 40% of the GDP of the U.S. economy, so the opportunity for AI here is significant.”
The Smith School’s small business and AI initiative began two years ago, when Padmanabhan and Anand worked with the Prince George’s County Economic Development Corporation to host workshops to teach small businesses how to use AI. The Center for AI in Business has developed custom online programs and in-person workshops for more than 50 small businesses in Prince George’s County. This new federal funding will allow the Smith School to expand its program to small businesses across Maryland.
The Maryland SBDC, based at the university, will co-sponsor the online courses and help develop the curriculum and market the workshops to small businesses across the state.
“We will help small and medium-sized businesses identify pain points, choose the right AI tools, and pilot them in a low-risk, measurable way,” he said. laura brownExecutive Director, Maryland SBDC.
The initiative includes a case competition in which students devise AI solutions to small business problems. Mr. Smith will work with the SBDC to identify Maryland-based small businesses for competitive case studies.
The Smith School will also use the funds to build a one-stop-shop online portal where small business owners can find the best AI solution for their organization. Specific ways small businesses can leverage this technology include AI-powered chat and email responses, scanning images and documents, AI for receipt and invoice processing, and using AI to monitor competitors and market signals to improve their business. University of Maryland students will help build this platform.
“To maintain Maryland’s economic prosperity in the 21st century, we all need to understand these new and innovative technologies,” said the UMD president. Darryl Pines. “But only by working together like this can we gain a competitive edge.”
Padmanabhan said the funding will also support research that identifies the challenges small and medium-sized enterprises face in the AI space and how AI can help them.
“My own view is that the biggest productivity gains in our economy over the next few years will come from the impact of AI on small and medium-sized businesses,” Padmanabhan said. “There is tremendous potential, but this group needs help to reduce friction and make AI more accessible and easier to integrate into everyday life.”
“It is an honor to be able to do this and to help all of you achieve this mission,” Ivey said, presenting an oversized check to Padmanabhan, Pines, and Brown & Smith Dean Prabhudev Konana.
The AI for Small Business Initiative is the latest expansion of the Smith School’s commitment to helping businesses at all levels understand and implement AI. The school launched the Center for AI in Business in 2024 and has vast faculty expertise in artificial intelligence. The center’s successful collaboration with Prince George’s County on the AI for Small Business initiative was the first such program in the nation. In May 2025, the Smith School launched a free online Certificate in Artificial Intelligence and Career Empowerment program to build AI literacy and support career transitions for federal employees and others. More than 50,000 learners around the world have enrolled in the country’s first 10-module self-paced program.
