This Month's Latest Tech News in Raleigh, NC - Wednesday April 30th 2025 Edition

Raleigh stands at the forefront of an AI revolution, as North Carolina lawmakers advance comprehensive legislation to regulate artificial intelligence, tackle deepfake crimes, and set civil liability limits for AI developers.

The bipartisan AI Regulatory Reform Act would make the creation or distribution of AI-generated 'deepfakes' without consent a misdemeanor and empower victims to pursue civil remedies, while shielding developers from liability in cases of professional misuse.

Meanwhile, the North Carolina Treasurer's Office has partnered with OpenAI for a 12-week pilot program to harness generative AI in processing public financial records and unclaimed property, reflecting growing public sector adoption while safeguarding data privacy.

Education institutions are responding with new AI guidelines, in-person support, and webinars led by the NC Department of Public Instruction (NC AI Guidelines and Resources).

As states nationwide fill regulatory gaps left by slower federal action, experts stress the need to balance innovation and ethics. As one local official put it,

“The big issue with AI in state government is one that we are deliberately side-stepping ... how do you ensure data privacy for non-public data in the context of using AI? That's a big, thorny, complicated question...”

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North Carolina is taking decisive action against the growing threat of AI-generated deepfakes with the introduction of the bipartisan AI Regulatory Reform Act, which recently advanced through crucial House committees.

If enacted, the legislation would make it a Class 1 misdemeanor, punishable by up to 120 days in jail, to create or distribute deepfake video, audio, or images that deceptively portray an individual without their consent.

Victims would gain expanded rights, including the ability to sue perpetrators for $1,000 with each distribution and to request court-ordered takedowns and destruction of the content.

According to First Coast News report on North Carolina deepfake law, lawmakers are working closely with industry leaders to ensure the bill draws a clear line between harmful misinformation and innovative uses of AI, particularly in political ads.

As outlined by the UNC School of Government's summary of House Bill 934, the measure specifically targets deepfakes meant to harass, extort, or influence elections, while granting immunity to AI developers for errors made by licensed professionals using their products.

These efforts place North Carolina among at least 34 states responding to deepfake dangers, as tracked in Ballotpedia's resource on AI deepfake policy in North Carolina.

“What we don't want to do is over-regulate to where North Carolina gets a bad reputation for a bad place to do business, developing or selling this technology or even using it in state government,”

emphasized Rep. Jake Johnson, reflecting the state's cautious approach to fostering both safety and innovation.

North Carolina is making significant moves to regulate artificial intelligence with the advancement of the bipartisan AI Regulatory Reform Act, a bill that would make it a Class 1 misdemeanor - punishable by up to 120 days in jail - to knowingly create or distribute deepfake audio or video meant to deceive the public, such as faked political statements or misleading campaign content.

Victims of deepfakes will gain powerful new rights, including the right to sue creators or distributors for $1,000 each time the material is shared and the ability to ask judges to order removal and destruction of false content, helping to safeguard both personal reputations and the integrity of elections.

Importantly, the legislation also limits liability for AI developers when their products are used by licensed professionals, addressing calls from industry stakeholders to protect innovation while introducing consumer safeguards.

As deepfake technology is increasingly used for fraud, misinformation, and personal harm, these advances in state and federal law - including the newly approved federal Take It Down Act targeting nonconsensual intimate imagery - signal a coordinated government crackdown on AI-driven abuses.

State Representative Jake Johnson stressed the importance of balanced regulation, noting,

“What we don't want to do is over-regulate to where North Carolina gets a bad reputation for a bad place to do business, developing or selling this technology or even using it in state government. We would rather get this done the right way and make North Carolina the true place that people want to come with new business when it comes to developing and installing these AI products.”

For a comprehensive breakdown, see the AI Regulatory Reform Act summary, a detailed WRAL report on the legislative process, and the federal perspective in coverage of the Take It Down Act.

North Carolina has taken a major stride in responsible AI leadership by appointing I-Sah Hsieh as its first Artificial Intelligence Governance and Policy Executive, a move announced by the N.C. Department of Information Technology (NCDIT) in late April.

Hsieh brings over 25 years' experience in AI governance and ethics - including advisory roles for the United Nations, nonprofits, and Fortune 1000 companies, as well as a long tenure at SAS - to his new mandate of developing and overseeing the state's AI governance policies and frameworks.

His primary focus will be guiding the ethical, transparent, and secure integration of AI technologies across public services, in alignment with North Carolina's Responsible Use of Artificial Intelligence Framework adopted in 2024.

According to NCDIT Secretary and State CIO Teena Piccione,

“I-Sah's appointment marks a significant step forward in North Carolina's commitment to harnessing the power of AI for the benefit and protection of our residents, businesses, and visitors. By overseeing governance structures that prioritize ethics and security, I-Sah will play a pivotal role in shaping how the state uses this technology and collaborating with the General Assembly, private industry, and government users to ensure we are able to innovate and grow with AI while protecting our residents' data and privacy.”

Hsieh will also spearhead training, guidance, and resources for state employees navigating generative AI, with broader initiatives set to support consistent, privacy-conscious AI innovation statewide.

For further details on this appointment and the evolving AI governance strategy, review the official NCDIT press release on I-Sah Hsieh's appointment, an in-depth profile of Hsieh's role and expertise in ethical innovation, and this technology workforce analysis on the broader impact of the new executive position.

North Carolina's ambitious "DAVE Act" (Division of Accountability, Value, and Efficiency) is progressing through the legislature, bringing artificial intelligence (AI) into the heart of evaluating state agency effectiveness and spending.

The act, championed by Senate leader Phil Berger and State Auditor Dave Boliek, will empower a new division within the auditor's office to analyze how agencies utilize taxpayer dollars, identify duplicative spending, and recommend positions or entire agencies for dissolution - though legislative action is required for any cuts.

AI-enabled audits and agency self-reporting will play a central role in this process, with agencies required to justify their operations and report vacancies left open for six months or more.

The measure passed the Senate 29-17 and now awaits House consideration, with a sunset provision set for the end of Boliek's current term in 2028. The act's supporters say it will modernize state oversight through data-driven, nonpartisan reviews, but critics - including state Democrats and employee associations - warn about potential job losses and reduced transparency, especially given the context of 14,000 current state vacancies.

As Sen. Sophia Chitlik (D-Durham) stated,

"Behind every one of these jobs, we have a reason, a community, a team... I think we're here to create middle class jobs and not to destroy them."

For a detailed account of the legislative debate and bill provisions, see NC Newsline's coverage of the DAVE Act's Senate passage, Government Technology's analysis on the role of AI in the Act, and Courthouse News' exploration of DAVE's legislative and political implications.

The table below outlines core features of the DAVE Act:

The North Carolina Department of State Treasurer has launched an ambitious 12-week pilot with OpenAI, making it the state's first government agency to directly explore ChatGPT's potential to overhaul public sector finance operations.

Announced in late March, the partnership seeks to boost operational efficiency and modernize processes by safely leveraging AI with only publicly available datasets - focusing on unclaimed property management and financial audits across more than 1,100 municipalities.

Treasurer Brad Briner emphasized their strict adherence to data privacy protocols, stating,

“There are many areas where AI cannot be used. We have a bright red line where all private personal data is concerned. We will not cross that line. This is only meant to take public data and make it more nimble and readily accessible.”

This deliberate, risk-aware approach aligns with broader national pilots, such as Pennsylvania's, which reported an average of 95 minutes per day saved for state employees.

The program is a non-binding memorandum of understanding - meaning OpenAI is not being compensated for off-the-shelf ChatGPT use, and future decisions will weigh measurable productivity growth due by mid-May.

Below is a summary of key metrics for the pilot:

For a deeper look at how this innovative initiative could impact both government efficiency and transparency, read the Carolina Public Press feature on Treasurer Brad Briner's AI vision, the official North Carolina Department of State Treasurer press announcement on the AI pilot, and the News & Observer coverage detailing the program's goals.

The surge in artificial intelligence (AI) adoption is driving an unprecedented increase in energy consumption by data centers, sparking urgent conversations about grid reliability and sustainability in Raleigh and beyond.

According to recent research, U.S. data centers accounted for about 4.4% of national electricity use in 2023 and are expected to require between 6.7% and 12% by 2028, with electricity demand from AI-optimized data centers projected to more than quadruple globally by 2030 - surpassing Japan's current total consumption.

This rapid growth raises concerns over rising utility bills for residents, grid bottlenecks, and the need for substantial infrastructure upgrades. As highlighted in a recent policy brief,

“AI data centers are rapidly increasing electricity demand, potentially accounting for nearly 9% of total U.S. grid demand by 2030,”

underscoring the need for new efficiency metrics and regulatory interventions.

Innovations such as grid-aware computing, more efficient AI models, and the integration of renewable and nuclear energy are being explored to address these challenges.

Recommendations include stricter efficiency standards, enhanced transparency, and grid integration requirements for AI infrastructure. As utilities and lawmakers in North Carolina consider how to meet escalating demand without burdening ratepayers, collaboration between policymakers, industry, and the energy sector will be essential to ensure economic and environmental sustainability.

For more detail, see this in-depth report on the resource impact of AI data centers, industry projections in 2025's data center trends and sustainability challenges, and comprehensive energy policy guidance in ACEEE's recommendations for future-proof AI data centers.

North Carolina A&T State University (N.C. A&T) has joined the NCShare initiative, drastically expanding its capacity for AI-driven research by enabling access to a state-wide cluster of advanced GPU computing resources.

Through partnership with leading universities and support from the National Science Foundation, NCShare delivers a scalable infrastructure - AI-GPUs-as-a-Service (AI-GaaS) - that empowers faculty and students to process massive datasets and train sophisticated AI models, such as those used in deepfake detection and cybersecurity investigations.

As Dr. Kaushik Roy, Chair of Computer Science, notes,

“NCShare is creating a very powerful cluster of interconnected GPU machines that is scalable... It's a great opportunity for our faculty and students so they can connect with it remotely and gain access that way.”

The collaborative NCShare platform stands out for its virtualized, cost-effective approach, democratizing high-performance AI research for both minority-serving and research-intensive institutions statewide.

N.C. A&T's engagement comes as the university also launches North Carolina's first bachelor's degree in AI, preparing up to 150 enrolled students for cutting-edge technology careers.

For a detailed look at the GPU-sharing model and institutional partnerships, see the NCShare official site; learn about N.C. A&T's research on deepfakes and political security in this coverage; and read how the university's new AI degree helps keep North Carolina at the forefront of AI education here.

North Carolina's healthcare AI startups are commanding national attention as several homegrown innovators have been selected to compete at the prestigious INVEST Pitch Perfect contest on May 20-21, 2025, in Chicago.

Finalists such as FusionCare AI, GenServe.AI, Vasowatch Inc., HealthEMe Inc., iHealthScreen Inc., and Pear Suite address pressing health issues - from scalable obesity care and secure AI platforms for health systems to solutions targeting maternal mortality and empowering chronic illness management.

A notable highlight is Vasowatch's clinical decision-support technology, which delivers “10x greater predictive accuracy hours ahead of delivery” to help prevent postpartum hemorrhage, a leading cause of maternal death and a critical issue given persistent racial disparities.

The event features Blue Cross and Blue Shield of North Carolina as a key investor judge, reflecting the region's growing buy-in for AI-driven transformation. This momentum builds on statewide initiatives such as the North Carolina Biotechnology Center's conference, aimed at connecting startups with health systems, payers, and investors to champion value-based care and align innovation with real-world healthcare needs (AI health tech startups at Pitch Perfect, aligning NC healthcare innovation).

Meanwhile, providers such as Atrium Health, Novant Health, and Duke Health are already deploying AI solutions for diagnostics, patient risk identification, and operational efficiencies, underscoring North Carolina's leadership at the intersection of healthcare and technology (10 ways NC healthcare providers harness AI).

The state's ecosystem of universities, payers, and tech startups is forging a model for sustainable, evidence-based health innovation nationwide.

Raleigh's higher education sector is advancing rapidly in AI integration, with Elon University leading the charge through new degrees, student-led initiatives, and faculty-backed collaborations.

The A.I. & E.T. Club at Elon, founded by Joshua Mason and Aaron Satko and funded by an Elon Innovation Grant, is cultivating a thriving community around AI exploration, offering hackathons, campus-wide competitions, and partnerships like DataFest 2025 that connect students with real-world data challenges (Elon AI Club sparks conversations around emerging technology).

The university's AI hub extends beyond extracurriculars, embodying a human-centered approach to teaching and ethical use of artificial intelligence, with resources, pilot programs, and the AI Pedagogy Challenge designed to prepare students for evolving career demands (Elon AI Hub and AI Pedagogy Challenge).

Thought leadership from faculty, including contributions by Ryan Mattfeld on integrating AI into programming courses, and research initiatives like the Student Guide to Artificial Intelligence, illustrate the region's commitment to equipping students and educators for the future (Imagining the Digital Future Center's higher ed AI initiatives).

As Mason notes,

“We envision a future where students are not sitting in fear of becoming obsolete by new technologies but rather can harvest them, using them to bring new life into their already imaginative and ever-expanding vision.”

This collaborative energy is shaping Raleigh as a model for AI-driven academic innovation and community engagement.

Bank of America's AI-powered assistant, Erica®, now supports more than 90% of the company's 213,000 global employees, marking a major milestone in the bank's digital transformation.

As of early 2025, employee-focused virtual assistants such as Erica for Employees, ask MERRILL®, and ask PRIVATE BANK® have dramatically improved internal workflows by handling IT support, payroll questions, device activation, and even complex research tasks, cutting IT service desk calls by over half and increasing productivity by at least 20% for software development teams.

Externally, Erica has surpassed 2.5 billion client interactions, assists 20 million active users, and now engages clients over 2 million times per day, providing tailored financial guidance, timely alerts, and rapid answers to banking queries - 98% within 44 seconds.

This commitment to scalable, secure AI has helped Bank of America achieve industry recognition for innovation and digital excellence. As Chief Technology & Information Officer Aditya Bhasin notes,

“AI is having a transformative effect on employee efficiency and operational excellence ... enabling us to further enhance our capabilities, improve employee productivity and client service, and drive business growth.”

The bank's extensive technology investments are reflected in its industry-leading AI patent portfolio, with over 1,200 AI- and machine learning-related patents among nearly 7,400 pending and granted, furthering its leadership across digital banking.

Read more on Bank of America's global AI workforce strategy, explore Erica's rapid growth and client capabilities in Erica's latest milestone report, and dive deeper into the impact on everyday banking in PYMNTS' coverage of Erica's client engagement achievements.

Raleigh stands at the forefront of AI adoption and regulation, setting a statewide example for aligning rapid innovation with responsible governance and sustainable infrastructure.

The city's leadership has been exemplified by the appointment of I-Sah Hsieh as North Carolina's first artificial intelligence governance and policy executive, with Under Secretary Teena Piccione affirming,

“By overseeing governance structures that prioritize ethics and security, I-Sah will play a pivotal role in shaping how the state uses this technology and collaborating with the General Assembly, private industry, and government users to ensure we are able to innovate and grow with AI while protecting our residents' data and privacy.”

As noted by Steve Rao, North Carolina's surging AI sector is prompting significant investments in renewable energy and infrastructure modernization - critical steps as data centers and AI applications drive up demand and environmental considerations.

The region's approach emphasizes bridging economic growth with ethical frameworks, grid resilience, and proactive workforce upskilling; all are highlighted in the latest analysis of Raleigh's AI revolution and energy pivot.

Innovation extends from the public sector's adoption of AI in services and finance to collaborative, sustainability-focused initiatives involving Duke Energy and tech giants like Amazon and Microsoft.

Meanwhile, initiatives such as the North Carolina Responsible Use of Artificial Intelligence Framework and state-backed employee training reinforce a holistic vision of safe, effective, and future-ready AI deployment (learn more about the state's AI governance strategy).

Supporting the momentum, local startups, academic partnerships, and high-growth companies are advancing Raleigh's position as a national hub for equitable and scalable AI-driven solutions - with the broader U.S. trend toward AI-integrated education ensuring a robust talent pipeline (explore the executive order on advancing AI education for American youth).