Gujarat has joined hands with IBM and the Indian AI Research Organisation (IAIRO) to set up an Industrial Artificial Intelligence Centre of Excellence (CoE) that will function as a ‘Living Lab’ for developing, testing and demonstrating AI solutions for industries such as manufacturing, energy, utilities and supply chains.The proposed centre, announced by the Department of Science and Technology, Government of Gujarat, IBM and IAIRO, is aimed at helping industries adopt artificial intelligence faster while positioning Gujarat as a hub for Industrial AI and sovereign AI technologies. Unlike a conventional research centre, the Living Lab will allow companies, researchers and government agencies to jointly develop and pilot AI applications in real-world industrial settings before they are deployed at scale.The Centre of Excellence will also focus on building an Industrial AI ecosystem by encouraging collaboration between industry, academia and government through workshops, conferences and technical sessions. It will promote applied research, develop AI frameworks and standards, and support responsible and scalable adoption of AI across industries. A major focus of the initiative will be skilling. The partners plan to work with academic institutions to organise research programmes, hackathons and specialised training in emerging AI technologies to create industry-ready talent.Dr Amit Sheth, founding director of IAIRO, said the next generation of industrial systems would require AI that combines machine learning with domain knowledge, human expertise and trust. “Gujarat’s industrial leadership provides a strong foundation for translating frontier AI research into real-world applications. This initiative will help advance indigenous innovation, nurture talent and strengthen India’s leadership in trustworthy Industrial AI,” he stated in an official release.Under the collaboration, IBM and IAIRO will serve as technical and strategic advisors to the Gujarat government, providing expertise in Industrial AI, sovereign AI technologies and asset management platforms to help industries adopt AI at scale.Sriram Raghavan, General Manager, IBM Software, India and Software Innovation Lab, said AI is becoming a strategic priority for manufacturers seeking to improve productivity and operational resilience. “Scaling Industrial AI requires advanced AI models, enterprise-grade platforms, governance and strong ecosystem partnerships. We look forward to working with the Government of Gujarat and IAIRO to accelerate the adoption of sovereign AI technologies,” he added.Published on June 30, 2026