AI must remain a tool, not a substitute for human imagination, says Karnataka CM Siddaramaiah

Karnataka CM Siddaramaiah, Deputy CM DK Shivakumar, IT-BT minister Priyank Kharge, along with other dignitaries at Bengaluru GAFX 2026

• AI should amplify human creativity, not replace human imagination
• Karnataka to promote digital creative clusters beyond Bengaluru
• State plans to move from service-led to original IP-driven AVGC industry

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Artificial intelligence (AI) must remain a tool and not a substitute for human imagination, said Karnataka Chief Minister Siddaramaiah as he inaugurated the seventh edition of Bengaluru GAFX (Gaming, Animation, and Visual Effects) conference.

"Technology should amplify human potential, not erase it. The soul of storytelling is human emotion, something no algorithm can replicate in its fullness," Siddaramaiah said.

He also stressed the need for ethical AI usage, noting that intellectual property rights, data privacy, fair compensation, and skill upgradation must remain central to its development.

These remarks come as AI continues to reshape the entertainment landscape both in India and across the globe.

Siddaramaiah said AI is transforming content pipelines. It is enhancing productivity and reducing costs from procedural animation to generative environments, from voice synthesis to real-time rendering.

"As a government, we are committed to policies that protect human creators and users while empowering them with new tools," he said "We will ensure that progress is inclusive. The digital revolution must not widen inequality, it must democratise opportunity."

In 2024, the Karnataka government earmarked an investment of Rs 150 crore for its revised AVGC-XR policy for the year 2024-2029. Through the policy, which was first announced in November 2023 and launched in January 2024, the state government aims to generate 50,000 jobs over the next few years.

The government is also looking to create a talent pool by transforming the state into a centre of excellence for AVGC-related skills and ensure that exports constitute at least 80 percent of the sector's total revenue. The gaming Center of Excellence (CoE is expected to serve as the destination for innovation, research, and development in the gaming sector.

Siddaramaiah highlighted that the AVGC-XR Policy has provided incentives, infrastructure support, skill-building initiatives, incubation systems, and institutional collaboration to nurture the ecosystem.

Digital creative clusters beyond Bengaluru

The state's approach goes beyond Bengaluru, he noted. "We are promoting digital creative clusters in Mysuru, Mangaluru, Hubballi-Dharwad, Kalaburagi and other emerging cities. We want the next great game designer or VFX innovator to emerge not only from the capital, but from every district of Karnataka," he added.

Also Read: Karnataka cabinet clears IT policy 2025-2030, thrust on ‘Beyond Bengaluru’ clusters & AI

Siddaramaiah noted that the government is leveraging augmented reality to enable immersive digital tours of heritage and tourist destinations for deeper learning, engagement and understanding.

"We are integrating immersive AVGC-XR technologies into education, advancing medical training through simulation, and digitally preserving Karnataka’s history and cultural heritage for future generations," he said.

Strengthening infra and production ecosystems

Siddaramaiah urged universities, engineering colleges, design schools, and polytechnics to integrate AVGC-XR skills into mainstream education.

He also announced that the government would strengthen infrastructure and production ecosystems such as studios, motion capture facilities, post-production labs, gaming labs, and incubation spaces.

It will also encourage studios to develop original intellectual property (IP) rooted in our culture, history and imagination. "We want global characters born from Karnataka’s soil," he stated.

Additionally, the government will deepen collaborations with international studios, investors, academic institutions and technology partners. "Karnataka will be a bridge between India’s creative youth and the world," he added.

Karnataka Deputy Chief Minister DK Shivakumar mentioned in his address that the AVGC Centre in Karnataka will train 50,000 students by 2028, with nearly 70 percent of the workforce being creative professionals. He pointed out that the Centre has already supported prominent projects like the blockbuster movie KGF.

"Bengaluru led India’s IT revolution. Now, it is time to lead India’s creative technology revolution," he said.

Shivakumar added that over 650,000 employees in Karnataka are being trained on Generative AI skills in 2023-2024, with a 9X increase in Gen AI-related activities in CY 2023 over CY 2022.

He also highlighted that Karnataka is home to over 875 Global Capability Centres (GCC) units, with a large concentration of digital media companies, and a deep technology talent pool.

"Our goal now is to scale this leadership further by strengthening talent pipelines, supporting creative startups, expanding infrastructure such as the upcoming AVGC-XR Park, and ensuring that Karnataka remains India’s leading hub for the Orange Economy and a global destination for creative technology," he said.

Also Read: Why Mangaluru is emerging as the new tech ‘Plus One’ to Bengaluru

Developing blueprint to move from service-led model to original IP creation

During the conference, Karnataka IT-BT Minister Priyank Kharge chaired high-level consultation meetings with industry leaders and global partners at the GIA (Global Innovation Alliance) International Roundtable to develop a strategic blueprint to move Karnataka’s AVGC-XR sector from a predominantly service-led model to one driven by original IP creation.

“As AI rapidly transforms animation, gaming and content creation, Karnataka must stay ahead of disruption. Our focus is clear — strengthen skilling, expand global collaboration through the GIA framework, and move decisively from a service-led model to one driven by original IP creation," Kharge said.

The roundtable was attended by Manjula N, Secretary, Department of Electronics, Information Technology, Biotechnology, and Science & Technology; Rahul Sharanappa Sankanur, Managing Director, Karnataka Innovation & Technology Society (KITS); and Sanjeev Gupta, CEO of Karnataka Digital Economy Mission (KDEM).

ABAI secretary RK Chand, JetSynthesys founder Rajan Navani, Krafton India CEO Sean Hyunil Sohn, Zebu Animation Studios founder Veerendra Patil, FICCI AVGC Forum's Ashish Thapar, and CII's Madhurima also participated in the roundtable along with senior global delegates from Australia, Finland, Italy, and France.