Tamil Nadu Finance Minister N. Marie Wilson presents the state government's maiden budget in the Assembly.
| Photo Credit:
The new Tamilaga Vettri Kazhagam(TVK) led Tamil Nadu Government has identified Artificial Intelligence to be a key priority with its first Budget including multiple AI-focused initiatives to improve education, governance and industrial growth. The government has announced the setting up of an AI and innovation city called ‘Arivagam’ where AI companies, startups, Global Capability Centres(GCC), and other research institutions working in domains like quantum technology and computer infrastructure will come together to develop the state’s AI and deep tech ecosystem. The AI city will include an AI university, an international skill development centre, a semiconductor hardware testing lab, innovation incubators and residential infrastructure. A feasibility study for the establishment of the AI city will be undertaken at an estimated cost of ₹5 crore.The government has also planned to expand the scope of the TN AI Mission to encompass emerging technologies such as quantum technology, robotics and Animation, Visual Effects, Gaming and Comics, and Extended Reality (AVGC-XR),In the Revised Budget Estimates, an amount of ₹398 crore has been allocated to the Artificial Intelligence, Information Technology and Digital Services Department.On the education front the government has launched the AI Industry Development Program. Under this programme, an expert committee of academic and industry leaders will curate specialised AI curricula for higher education. It has also announced plans to expand the Tamil Nadu School Programme for Artificial Intelligence, Robotics and Knowledge of online tools (TN SPARK) to a further 2,600 government schools in addition to the current 5,000 schools . The government has also announced a new trade in Artificial Intelligence and Machine Learning to be introduced in Government Industrial Training Institutes at an estimated cost of ₹10 crore. This trade will be introduced in 50 Industrial Training Institutes over a period of five years, at the rate of 10 institutes per year. Through this initiative, 24,000 students will receive training and employment opportunities in Artificial Intelligence technology over five years. As for leveraging technology for better governance, the state government has announced a slew of digital initiatives including revamping the e-sevai centers and Namma Arasu Whatsapp chatbot. It also plans to introduce initiatives such as ‘Faceless Assessment’ under the Goods and Services Tax, ‘Faceless Registration’ in the Registration Department and end-to-end computerisation in monitoring mining activities. These initiatives are together expected to generate additional revenue of approximately Rs.15,000 crore for the Government Published on August 5, 2026
