In a bold move to redefine its digital roadmap, the Karnataka government is preparing to launch a new Information Technology (IT) policy with a focus on emerging technologies, particularly artificial intelligence (AI). Set to be finalised in July, the upcoming policy will mark a shift from the expiring 2020–2025 policy by prioritising AI integration, deep tech development, and expansion of digital infrastructure beyond Bengaluru.
As part of this new strategy, the government has proposed the establishment of a Centre for Applied AI for Tech Solutions (CATS). With an investment of ₹50 crore spread over five years, the centre aims to make Karnataka a frontrunner in applied AI by fostering innovation in governance, public services, and industry.
Chief Minister Siddaramaiah, during his budget speech, emphasised that Karnataka is not only India’s leading tech hub but also rapidly evolving into a model state for AI-driven governance. The Karnataka AI Cell, a key initiative under the new policy, is already developing AI solutions based on cutting-edge technologies such as Computer Vision, Natural Language Processing (NLP), and Large Language Models (LLMs).
In addition to CATS, the state has introduced a ₹300 crore fund-of-funds to support startups and a dedicated ₹100 crore fund to encourage the growth of deep-tech enterprises. This move aligns with recommendations from industry body Nasscom, which advocated for an anchor investor role by the state and funding ticket sizes ranging from ₹50–₹200 crore to scale innovations effectively.
Minister for IT and BT Priyank Kharge has confirmed that the draft policy is under review and will likely be finalised before the annual CEO meet in July. He noted that the policy aims to develop “new economic accelerators beyond Bengaluru” and address infrastructure challenges in fast-growing cities.
Efforts are also underway to decentralise the IT ecosystem by boosting growth in Tier-2 and Tier-3 cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi. These regions are expected to benefit from enhanced IT infrastructure, skilling programmes, and regulatory reforms that promote ease of doing business.
The policy introduces several AI-powered tools and systems to enhance governance. One such tool, the AI-based Government Order Summary and Information Extraction Tool, will help citizens and officials access and interpret government orders more easily. Meanwhile, the IPGRS 2.0, an AI-driven grievance redressal system, promises more effective handling of public complaints.
Educational and agricultural sectors are also poised to benefit. The Kalika Deepa initiative, in partnership with EkStep Foundation, will deploy AI to enhance learning outcomes for students in over 2,000 government schools. Similarly, Digital Agricultural Service Centres will use AI and geospatial technologies to assist farmers with crop planning and decision-making.
In a significant digital infrastructure upgrade, the K-GIS portal will be modernised at an estimated cost of ₹150 crore to incorporate AI and machine learning capabilities. Furthermore, AI-powered cameras will be installed across 10 districts to monitor traffic and enforce road safety.
Karnataka’s visionary approach reaffirms its status as a digital pioneer, leveraging AI to catalyse inclusive growth and redefine public service delivery across the state.