Karnataka Charts AI Roadmap For Creative Industries At Bengaluru GAFX 2026

Bengaluru: The Karnataka government has set out an ambitious roadmap to position the state as a global leader in the animation, visual effects, gaming and comics sector, placing artificial intelligence at the heart of its growth strategy. The announcement was made at the valedictory of Bengaluru GAFX 2026 in Bengaluru on Sunday, March 1.

The three-day Bengaluru GAFX 2026 saw a confluence of policymakers, independent creators, gaming leaders, educators, and immersive technology innovators with an aim to advance the ecosystem.

The event seeks to reinforce Karnataka’s leadership in India’s AVGC-XR sector, strengthening its emergence as a global hub for AI-enabled storytelling and immersive media innovation.

Addressing the gathering, Priyank Kharge, state minister for Electronics, IT and BT and Rural Development and Panchayat Raj, said, “The AVGC sector has moved beyond entertainment to become a key pillar of the digital economy. It is not just about animation or gaming. It represents digital exports, cultural influence, youth employment and India’s creative soft power in a rapidly evolving AI-driven world."

AI Reshaping Content Creation

Kharge noted that artificial intelligence is transforming how animation, gaming and immersive media are produced. AI-based tools are enabling faster concept creation and storyboarding, automated animation and rendering optimisation, dynamic game environment generation and shorter production cycles. He said some animation workflows could see cost reductions of 25 to 40 per cent, allowing smaller studios to compete globally.

At the same time, he flagged five key challenges: employment disruption, intellectual property ambiguity in AI-generated content, concentration of power among global AI platforms, skill mismatch and ethical risks such as deepfakes and digital identity misuse. To address these concerns, the state plans to establish a Responsible Use of AI framework involving technologists, legal experts and industry stakeholders.

Policy Push for IP, Skilling and Global Access

Outlining the state’s strategy, the minister announced an integrated AVGC–AI Mission to strengthen research, innovation and advanced creative technologies, building on the existing Centre of Excellence in Karnataka. The government will also explore an AVGC Intellectual Property Framework covering AI training datasets, copyright protection, royalty structures and digital likeness rights.

A Creative Tech Skill Grid will support reskilling and upskilling of artists into AI-assisted creators through industry partnerships. Under Karnataka’s Elevate programme, grants of up to ₹50 lakh will continue to support original intellectual property production, with a greater focus on AVGC startups. Through the Global Innovation Alliance, studios will receive international exposure at festivals and markets. The state also plans to develop creative clusters beyond Bengaluru using a hub-and-spoke model and introduce a regulatory sandbox to allow innovators to test emerging technologies before formal policies are finalised.

Emphasising the role of creators, Kharge said, “The question is not whether AI will replace creators, but whether creators empowered by AI will lead the future.” He added that Karnataka aims to move from a services-led model to one driven by original IP ownership and global storytelling leadership.

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