Karnataka has announced the launch of a new Centre for Applied AI in Bengaluru’s HSR Layout, a move that signals the state’s commitment to becoming a hub for deep‑tech innovation. The centre, named CATS – Centre for Applied AI for Tech Solutions, will be set up in partnership with NASSCOM and will receive a total investment of ₹20 crore over four years, split 40:40:20 between the Union Ministry of Electronics and Information Technology (MeitY), the Karnataka government and industry partners.
Background/Context
Bengaluru, often dubbed the “Silicon Valley of India,” has been a magnet for technology startups and multinational IT firms. Yet, the city’s growth has largely been driven by software services rather than deep‑tech research and development. The state’s recent “Deep‑Tech Decade” initiative aims to shift this focus toward artificial intelligence, robotics, and automation. By establishing an Applied AI centre in HSR Layout, Karnataka is positioning itself to nurture a new generation of AI‑driven solutions that can be commercialised locally and exported globally.
According to a 2025 report by the National Institute of Science and Technology, India’s AI market is projected to reach $30 billion by 2030, with Bengaluru expected to contribute 35% of that value. The new centre is therefore not just a symbolic gesture but a strategic investment designed to capture a share of this rapidly expanding sector.
Key Developments
The centre will be housed in the Keonics facility, a state‑of‑the‑art research park that already hosts several tech incubators. Its primary focus areas include:
- Artificial Intelligence & Machine Learning – Development of industry‑specific AI models for healthcare, agriculture, and smart cities.
- Robotics & Automation – Design of autonomous systems for manufacturing and logistics.
- Supply Chain Optimisation – AI‑driven analytics to reduce waste and improve efficiency.
- Digital Transformation – Consulting services to help SMEs adopt AI tools.
IT and BT Minister Priyank Kharge stated, “This is Karnataka’s deep‑tech decade, and the CATS AI centre of excellence will serve as a launchpad for deep‑tech start‑ups and industry collaborations. By bringing government, academia and industry together, we are creating a strong pipeline from research to market‑ready innovation.”
The centre’s performance will be measured against clear KPIs: number of start‑ups incubated, prototypes developed, intellectual property filings, industry partnerships forged, and skilled professionals trained. Year‑wise growth targets will ensure measurable, outcome‑driven progress.
Impact Analysis
For students and budding entrepreneurs in Bengaluru, the Applied AI centre Bengaluru offers unprecedented access to cutting‑edge research and industry mentorship. The centre will host hackathons, workshops, and accelerator programmes that provide:
- Hands‑on training in AI and robotics, bridging the gap between academic theory and real‑world application.
- Mentorship from industry leaders who can guide product development and market entry.
- Opportunities to secure seed funding through NASSCOM’s venture arm and state‑backed grants.
Moreover, the centre’s focus on supply chain optimisation aligns with Bengaluru’s growing logistics sector. Start‑ups that develop AI solutions for inventory management or route optimisation stand to benefit from direct collaboration with local e‑commerce giants and manufacturing firms.
For the broader economy, the centre is expected to create over 500 high‑skill jobs within the first three years, according to a preliminary economic impact study by the Karnataka Department of Science and Technology. This will not only boost employment but also enhance Bengaluru’s reputation as a global AI hub.
Expert Insights/Tips
Dr. Ananya Rao, a leading AI researcher at the Indian Institute of Science, advises students to focus on niche domains where AI can solve pressing problems. “Instead of chasing generic AI models, look for verticals like precision agriculture or mental health diagnostics,” she says. She also recommends leveraging the centre’s open‑access labs to prototype ideas before pitching to investors.
For entrepreneurs, the centre’s incubation programme offers a structured pathway: initial ideation support, followed by prototype development, and finally market validation. “The key is to iterate quickly and seek feedback from industry partners early,” notes Rajesh Menon, former CTO of a Bengaluru‑based logistics startup.
Students pursuing computer science or data analytics should consider enrolling in the centre’s short‑term certification courses, which cover advanced topics such as reinforcement learning, computer vision, and edge AI deployment. These courses are designed to align with industry needs and can significantly improve employability.
Additionally, the centre will host a yearly “AI for Good” competition, encouraging solutions that address social challenges. Winners receive seed funding and mentorship, providing a low‑barrier entry point for socially conscious innovators.
Looking Ahead
The launch of the Applied AI centre Bengaluru is just the beginning. The Karnataka government plans to replicate the model in other major cities, creating a network of AI hubs across the state. In the next two years, the centre will aim to:
- Establish a joint research lab with the Indian Institute of Technology, Bangalore.
- Launch a public‑private partnership to commercialise AI solutions in the healthcare sector.
- Expand its accelerator programme to include international startups through NASSCOM’s global outreach.
Industry analysts predict that the centre will accelerate Bengaluru’s transition from a software services city to a full‑stack technology ecosystem. By fostering collaboration between academia, industry, and government, the centre will help Bengaluru capture a larger share of the global AI market.
For students and professionals, the centre’s initiatives mean more opportunities to gain hands‑on experience, secure funding, and launch AI‑driven ventures. The government’s commitment to a 40:40:20 funding model also signals a stable investment environment, encouraging further private sector participation.
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