IBM (NYSE: IBM) announced the AI Builders Challenge, a global competition for university students using the company's IBM Bob development tool. The challenge offers $15,000 in total prizes and aims to help students develop AI skills for software development work.

The announcement coincides with IBM's expansion of free access to IBM Bob to 20,000 post-secondary institutions worldwide. Students will access the tool through IBM SkillsBuild for challenge-based projects reflecting real workplace software development scenarios.

The challenge features three themes: "Create with AI: The Future of Creative Industries," "Mission Beyond Earth: Space Exploration," and "Work Reimagined: Transforming Industries through Intelligent Work Systems." Students can participate individually or in teams, submitting projects through GitHub.

Prize distribution includes a $5,000 grand prize for the top project and monthly competitions with prizes ranging from $750 to $2,250. The grand prize winner receives an invitation to IBM TechXchange, the company's global technology conference.

"AI is now part of how work gets done, and students entering the workforce need to know how to use it effectively and responsibly," said Justina Nixon-Saintil, Vice President and Chief Impact Officer at IBM.

The challenge addresses a skills gap identified in a survey by the American Association of Colleges and Universities and Elon University, which found 63 percent of faculty said graduates were not prepared to use generative AI in workplace settings.

Registration opens June 3, with two monthly competitions launching July 1 and August 1. Entry deadlines are July 31 and August 31 respectively. The challenge is organized by BeMyApp and open to eligible university students 18 years or older across participating countries.