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Bengaluru: The upcoming Karnataka budget, to be presented by Chief Minister Siddaramaiah on Friday, may announce a new policy for artificial intelligence (AI) and internet of things (IoT) with a proposed outlay of Rs 200 crore, DH has learnt from informed sources.
“The aim of this new policy is to help AI startups grow and thrive within a separate policy framework instead of under the umbrella startup scheme of the state, Elevate,” said a source aware of the developments around this new policy.
Once the budget is approved by the legislature, the IT/BT Ministry, under Minister Priyank Kharge, will start working on the framework, the official said. The Ministry will seek consultations from companies, the public and other stakeholders, before launching it in the coming financial year.
The state government has reiterated its focus on building the AI ecosystem in Karnataka and making it the ‘AI capital’. The government had also signed a letter of intent with the World Economic Forum (WEF) in 2024 to set up a centre for AI. Presently, a Centre of Excellence for internet of things (IoT) and AI is already present in the state.
However, the development and sustenance of this emerging technology comes at a huge cost, both financially and in terms of resources, as also highlighted by the recent Economic Survey report by the Union Finance Ministry.
Data centres which help with AI development through computing, storage and infrastructure to train complex algorithms consume immense amounts of electricity and require a lot of cooling which is mostly done through potable water.
Moreover, this setup also requires land which has easy access to power and water. As previously reported, high land and power costs due to a booming commercial market already gives Bengaluru a disadvantage when it comes to setting up data centres.
Anticipating disruption from AI and automation, Karnataka recently asked enterprises investing Rs 50 crore to create a minimum of 25 jobs in order to receive incentives under the government’s new industrial policy.