By Sophia Herndon

The Robert H. Smith School of Business at the University of Maryland received $1.03 million in federal funds last month to work on incorporating artificial intelligence into local businesses in Maryland.

According to a survey released by Gartner, 79% of corporate strategists see AI and analytics as critical to their success over the next two years. On average, 50% of planning and activities for their business could be completed by AI, according to Gartner.

UMD’s initiative will work through the Center for Artificial Intelligence in Business at the business school led by professors Balaji Padmanabhan and Tejwansh Anand. 

Padmanabhan is the director for the Center for AI in Business, and Anand is the academic director for the Master of Science in Information Systems and AI programs at the business school.

According to the business school’s website, it “will use the money to analyze existing AI solutions, develop new programs, and provide online courses and workshops for small businesses across the state.” 

This means businesses in Maryland will have more opportunities to understand and adopt AI, expanding their development in technology. This will benefit local and smaller businesses in the state that haven’t had the opportunity to learn about AI or engage with it.

Anand said larger companies and researchers have focused on solving problems that are relevant to large businesses, but for this grant, the focus is shifted to smaller businesses.

‘Small businesses are key to our economic growth, and they’re also key when it comes to more rapid adoption of AI,” Anand said.

The business school will be working with the Maryland Small Business Development Center during the process of training small businesses. 

“This grant creates a direct bridge between UMD’s AI expertise and the small businesses that need it most,” said Lora Brown, the state director of SBDC, in an email to Stories Beneath the Shell. 

Brown explained how the funding will help businesses through workshops, consulting and training. She said this funding is equally valuable for students.

The grant will allow students to gain more hands-on experience in business development. Students will work with real-world problems and businesses, rather than just classroom exercises.

Ryan Ledig, a sophomore information systems and supply chain management major, explained how helping smaller businesses adopt AI will allow them to compete more effectively with larger and more established businesses.

“Unless you’ve been established for a long time, it’s gonna be extremely difficult to really have an impact without technology,” Ledig said.

This semester, Ledig is a teaching assistant for an introduction to information systems course. In this course, as well as other courses, Ledig has seen more incorporation of AI and the use of AI agents to increase productivity.

“I know the topic is very hot right now, and I think a lot of teachers are trying to gravitate towards it, especially for information systems majors,” Ledig said.

Information systems is a major within the Smith School that focuses on connecting businesses and technology. A variety of majors in the Smith School will benefit from this grant, as they will work with business management and AI.

“Any amount of help that we can provide as a university is tremendous and could do a lot of good,” Ledig said.

Featured Image: The University of Maryland Robert H. Smith School of Business, which is located along Mowatt Lane, on April 28, 2026. Photo by Paige Trendell.