The AI LABS Act directs the Secretary of Education to establish a competitive grant program providing federal funding to states for developing and expanding artificial intelligence curricula in elementary and secondary schools. States receiving grants must use the funds to create AI educational programs through two main approaches: developing dedicated curricula that teach students how to use and understand artificial intelligence, and providing professional development to help teachers understand AI and integrate it into their teaching. The bill requires the Secretary of Education to study the grant program and submit a report to Congress within one year of enactment, analyzing how states are using the funds and making recommendations for future AI education initiatives to keep the United States competitive globally. The legislation does not specify the total funding amount or distribution formula for the grants in the provided text.