State Cancels Incentive After AI-Related Hiring Shortfall
State Cancels Incentive After AI-Related Hiring Shortfall
Publish Date: 2026-03-04 17:34:00
Source Domain: www.govtech.com
- North Carolina cancelled a $1.3 million state grant to Morrisville software provider Relias due to a hiring shortfall, attributing it to the adoption of AI automation.
- Relias, which had created over 600 jobs locally under the grant, could not meet the 423 new positions required by 2024 due to increased use of generative AI.
- Relias’s vice president of human resources acknowledged AI as a tool to optimize work processes, leading to fewer hires in technology roles.
- The North Carolina Economic Investment Committee voted to cancel the grant in March 2025, despite Relias reporting a 62% increase in its U.S. workforce since 2016.
- The rise of advanced AI tools and increased remote work options, a trend influenced by the COVID-19 pandemic, have impacted hiring across the Triangle tech region.
