Government allocates a fund which is used to distribute money to startups with good ideas. A competition takes place where many startups in the AI sector compete against each other. A winner will be chosen by the expert team.
The government provides data loads, which can be used by a business to train their AI model. In return every business has to upload their collected data with the government.
If you want to invest as a company you have to place a bit. So different AI companies can apply to it and profit.