Funding for Libraries: Keeping Libraries Relevant
As funding landscapes shift for libraries and museums amid the rapid rise of AI, it is essential to understand how to avoid its pitfalls, preserve knowledge and foster innovation through curated, evidence-based collection management and the institutional memory safeguarded in archives, libraries and museums.
Curated Archive, Library and Museum Collections vs AI Engine Data: Where the Value Lies
Libraries, whether public hubs or specialized collections, remain one of the most powerful tools for access to authoritative information that spurs economic and community development. Public and corporate archives, libraries and museums contribute unique and vital benefits to the communities and organizations they serve. In an increasingly AI-driven digital world, it is important to understand where AI Large Language Models (LLMs) obtain, evaluate and serve up information.
Training data for today’s general purpose LLMs do not come from traditional curated databases. LLM models learn patterns from private and publicly available data in addition to YouTube transcripts, social media posts, etc. to predict the next word, generate content, or write scripting code. These LLMs do not retrieve information from a database that is full of evidence-based, authoritative information. With web content, Google uses a search quality rating system that evaluates content based on Experience, Expertise, Authoritativeness and Trustworthiness (EEAT); however, as we all know, web content can be published by individuals who are not authoritative, who push one side of an argument while presenting falsehoods or partial truths.
General purpose LLM answers can be skewed by social posts that are liked the most, or by content that is currently trending, called Reinforcement Learning from Human Feedback (RLHF), which uses a reward model trained on human preference data. This is why LLMs can sometimes generate factual errors, or “hallucinate,” instead of providing a consistent, deterministic result.
Further, LLM content moderation pre-programmed “guardrails” can restrict the discussion of sensitive or controversial topics, which can have not only a censorship effect but also stifle innovation.
Learn more about curated vs. generated information, LLM training data, the predictive nature of AI-generated answers, and the relevance of libraries vs AI as sources of information in our article: Libraries: The Best Information Management Solutions are Already in Place
Specialized AI tools are rapidly expanding in fields such as law, medicine, and other industries, frequently using pay-per-use pricing structures. While broad AI platforms are likely to retain their free or low-cost tiers, libraries have a distinctive advantage: they can teach users how to write better prompts, demonstrating that even subtle phrasing adjustments can significantly impact the quality of AI-driven results.
Much like libraries subscribe to scholarly journals today, they are poised to incorporate specialized AI platforms, with expenses that shift depending on usage rates and domain needs. In legal and healthcare sectors, current SaaS subscriptions vary widely, from $20 up to more than $500 per user per month. According to the Zylo 2025 SaaS Management Index, mid-sized organizations invested an average of $400,000 annually in AI tools in 2025. Forward-looking libraries will prioritize domain-specific AI solutions for their communities—providing both access and expert support in crafting precise queries.
Additionally, archivists and librarians offer irreplaceable value: they bring context, personalized guidance and rigorous evaluation to the table. They assist users in navigating intricate information landscapes, including materials that have yet to be digitized, verifying the reliability of sources and fostering ethical, effective application of knowledge.
This means that public and private libraries are not relics of the past and, in fact, are more important than ever as engines of fact-based information that can be resolutely relied upon. Whether through federally funded statewide services that sustain access or organizationally funded special libraries that support unique critical research, archives, libraries and museums prove time and again that they are a high-return investment that can be banked on.
So how do we make sure these libraries remain the cornerstone and driver of unique innovation and education?
Learn about 5 Ways Archives, Libraries, and Museums Remain Essential in the Age of AI
Funding Sources
Public archives, libraries and museums in the United States rely heavily on a combination of local, state and federal funding:
Federal Support through IMLS and LSTA Grants: The Institute of Museum and Library Services (IMLS) distributes Library Services and Technology Act (LSTA) funds to each state based on population. These funds often support state wide programs such as interlibrary loan systems, electronic databases and digital access services.
Local and Province/State Allocations: Local tax dollars remain the largest single source of support for public libraries, supplemented by state appropriations from state and federal funds.
As federal and state budgets come under scrutiny, it is worth remembering that those funds reach millions and provide measurable benefits to education, economy, equity and more. Private or special archives, libraries and heritage museums often housed within corporations, law firms or academic institutions are funded differently:
Corporate Budgets and Institutional Support: These libraries are usually part of the operational budget of the organization they serve, such as through the company’s research and development division.
Membership and Fee-Based Models: Some specialized libraries, such as legal or membership associations, also operate on a subscription or membership model that sustains their access to premium resources and staff expertise.
While public libraries serve broad community needs, private and special libraries fulfill targeted organizational missions with focused, specialized precision by providing domain-specific resources. However, their missions are the same as at a public or academic library: connect the user with the evidence-based, authoritative resources that they need.
These specialized institutions serve corporations, research organizations, law firms, medical facilities and other entities that require curated collections and expert knowledge management. Providing access to the right information at the right time helps to make organizations more productive, efficient and competitive. And with the inherent flexibility built into Soutron Global SaaS solutions, access to AI generated answers can be made available alongside internal collection resources.
To support public libraries and museums in the United States, utilize the American Library Association (ALA) and EveryLibrary websites, which provide petition templates and action alerts to inform and mobilize support for robust library funding.