State & Local News
Karnataka Government Enhances AI Innovation Framework
March 21, 2026
The Karnataka Government is advancing its Innovation Authority framework to accelerate emerging technology adoption, with a strong focus on artificial intelligence (AI). This initiative includes establishing a regulatory sandbox and an ethical AI framework to ensure safe and trusted AI deployment. Supported by the IT Policy 2025-30, the government is offering significant incentives and developing infrastructure projects such as a 1 GW data center park in Bengaluru. These efforts aim to position Karnataka as a global leader in AI innovation, fostering startup growth, industry collaboration, and sustainable energy integration.
- Procurement professionals should note the emphasis on AI-related infrastructure and regulatory frameworks, which may open opportunities for technology vendors and service providers specializing in AI, data centers, and ethical compliance solutions.
- The regulatory sandbox signals a controlled environment for testing innovative AI applications, suggesting potential pilot projects and contracts for qualified firms.
- The IT Policy 2025-30 incentives indicate favorable conditions for startups and established companies to engage with government-led AI initiatives.
- Organizations involved in sustainable energy integration and data center development may find strategic procurement opportunities aligned with Karnataka's infrastructure expansion plans.
Because we know that for you to succeed, your customers need to trust the technology. We want Karnataka to be the global benchmark for safe and trusted AI.
— Gaurav Gupta, Additional Chief Secretary
Agencies
Karnataka Government