State Budget 2026–27: Artificial Intelligence at the core of inclusive development and governance

The Karnataka Budget 2026–27 has placed Artificial Intelligence (AI) at the centre of the state’s vision for technological progress, inclusive development and efficient governance. As one of India’s leading hubs for technology and innovation, Karnataka aims to leverage AI to transform public services, strengthen human development and prepare its citizens for the emerging digital economy.

The state continues to strengthen its position as a global innovation hub. Karnataka has climbed from 21st to 14th place in the global start-up ecosystem rankings and now hosts more than 18,000 active start-ups. Bengaluru has further cemented its global leadership by securing the fifth position among the world’s top 50 cities in Artificial Intelligence and Big Data.

Recognising that rapid advancements in AI are reshaping global production systems and economic structures, the government has formulated a comprehensive strategy to integrate AI across key sectors such as agriculture, education, governance and skill development.

In the agriculture sector, the government plans to develop an AI-enabled Farmer Contact Centre to provide farmers with real-time information on weather conditions, market prices, crop advisory and government schemes. The initiative aims to empower farmers with timely knowledge and improve decision-making at the grassroots level.

In education, the government will introduce AI-powered personalised digital tutors in collaboration with IIT Dharwad. This initiative will support around 1.228 million students from Classes 8 to 12 by enabling personalised learning and improving academic outcomes across the state. Additionally, AI-based facial recognition attendance systems will be implemented in Anganwadis, schools, colleges and hostels across the state. The system will allow accurate monitoring of attendance while making daily attendance details publicly available, thereby strengthening transparency and accountability.

To expand access to advanced technology education beyond major cities, modern AI Data Labs will be established in 50 government colleges located in Tier-2 and Tier-3 cities. An allocation of ₹10 crore has been made for this initiative, which will be implemented in collaboration with the Government of India’s AI Mission. These laboratories will equip rural youth with cutting-edge AI skills and significantly enhance their employment opportunities in emerging technology sectors.

With a focus on preparing the future workforce, new high-employability courses such as Artificial Intelligence, Machine Learning, Cloud Computing and Automation Engineering will be introduced in government polytechnics and engineering institutions.

To promote technological inclusion and social mobility, 250 engineering graduates from backward classes will receive advanced AI training at prestigious institutions such as IITs, NITs and IIMs. This initiative aims to strengthen their technical capabilities and expand career opportunities in high-growth sectors.

Artificial Intelligence will also be used to strengthen citizen services. The Food and Civil Supplies Department will transform its existing helpline into an AI-enabled “Smart Annavaani.” This will function as an intelligent grievance-redressal platform incorporating automated responses, voice chatbots and advanced call management systems to improve responsiveness and transparency in public service delivery.

To further strengthen the state’s AI ecosystem, the AI and Robotics Technology Park (ART-Park) under the Indian Institute of Science, in collaboration with ISRO and KEONICS, will establish a major robotics and AI campus named the Bengaluru Robotics and AI Innovation Zone (BRAINS). The initiative is expected to significantly boost research, innovation and entrepreneurship in emerging technologies.

Additionally, a Centre of Excellence for Artificial Intelligence will be established at IIIT Raichur with an investment of ₹5 crore. This initiative will expand AI research capabilities and create new opportunities for students and innovators in North Karnataka.

To further reinforce Bengaluru’s position as a global AI hub, two additional AI Centres of Excellence will be set up with an investment of ₹16 crore in collaboration with the Institute of Bioinformatics and Applied Biotechnology, the Centre for Cellular and Molecular Platforms and NASSCOM. These centres will focus on advanced research, industry collaboration and the development of next-generation AI applications.

Artificial Intelligence will also play a transformative role in governance and citizen services. The government will develop the Kaveri 3.0 software at a cost of ₹65 crore. This fully AI-enabled, paperless property registration system will be integrated with property management systems across departments, significantly simplifying registration processes, reducing delays and enhancing transparency.

Together, these initiatives reflect the government’s commitment to building a future-ready Karnataka where technology serves the people, strengthens governance and expands opportunities for every citizen. By integrating Artificial Intelligence across multiple sectors, the state aims to establish itself as a leader in responsible and inclusive technological innovation.

Through these efforts, Karnataka seeks not only to accelerate economic growth but also to ensure that the transformative power of Artificial Intelligence translates into tangible benefits for farmers, students, workers, entrepreneurs and citizens across the state.