Bengaluru Is A Global AI Hub: Karnataka IT Minister Priyank Kharge

“Bengaluru takes pride in being home to the world’s second-largest AI talent pool…Our state government has launched a deeptech cluster seed fund of INR 25 crores to nurture startups specializing in deeptech and AI,” remarked Priyank Kharge, the Minister of IT and BT, Karnataka.

Speaking at a TiE India Internet Day event in Bengaluru, Kharge highlighted the Karnataka government’s endeavours to foster the AI ecosystem in the state, emphasising that the state stands as a hub of technology and innovation.

Bengaluru ranks among the top five AI cities globally, securing the fifth spot according to a study conducted by the rigorous framework listed in the Harvard Business Review.

Kharge pointed out that the Karnataka government has established centres of excellence in collaboration with private anchor institutions, focusing on emerging technologies. These centres drive initiatives across four areas —  startup ecosystem development, industry collaboration, government engagement, and research and academia.

An illustrative example is The ARTPARK, inaugurated by the state government in partnership with the Indian Institute of Science, Bengaluru. This initiative is designed to catalyse technological innovation in AI and robotics.

Additionally, the government of Karnataka, in partnership with the World Economic Forum and IIIT Bengaluru, has set up the Center for Internet of Ethical Things. This centre addresses the intersection of AI, IoT, and ethics, firmly committed to ethical foundations, as emphasised by Kharge.

According to research from Precedence, the global AI market reached a size of $454 Bn in 2022 and is anticipated to skyrocket to around $2,575 Bn by 2032. A study conducted by the Indian Institute of Management Ahmedabad suggests that successful AI adoption could contribute up to 1.4 percentage points to the annual growth of real GDP.

Projections indicate that AI could inject an additional $957 Bn into India’s economy by 2035. As per the Stanford AI Index report for 2023, Indian AI companies secured $3.24 Bn in funding during 2022, positioning India as the fifth highest recipient of AI investments, as highlighted by the Karnataka government.

Directing his words to the entrepreneurs, Kharge reaffirmed the government’s commitment to address and resolve their challenges, urging them to articulate these concerns.

In line with these efforts, the Karnataka state government, having recently approved the cybersecurity policy, is also preparing a white paper outlining an ethical framework for governing IoT, AI, and AI systems.

The Transport Policy Falls Short In Addressing Ride-Sharing And Hailing Standards 

Responding to a question from the audience about the regulatory conundrum for ride-hailing startups, Kharge took a pointed stance on the operations of Ola, Uber, and Rapido businesses.  He cited the absence of clear operational policies in ride-hailing services in India and the incompatibility of many ride-sharing models with India’s existing transport policy.

Notably, Karnataka’s transport minister Ramalinga Reddy and CM Siddaramaih held meetings with the Uber and Ola Drivers Association in recent weeks to address some of their concerns.

The Association’s persistent demand has been for Ola and Uber to lower their commission from the current 25% to a range of 10% to 25%.

Sources told Inc42 that the state government is also mulling to introduce an app similar to Ola and Uber through BMTC (Bangalore Metropolitan Transport Corporation) at a reduced commission rate.