Budget 2024: Boost for AI likely, industry urges separate budgets and accelerated R&D

Interim Budget 2024

In the Interim Budget that is slated to be announced by Finance Minister Nirmala Sitharaman on February 1, the Central government is expected to announce a host of initiatives in the domains of artificial intelligence (AI) and other emerging technologies.

This comes after Sitharaman, in last year's Union Budget, announced that the government will be setting up three Centres of Excellence in AI, in the sectors of sustainable cities, health and agriculture.

For the upcoming budget, industry has called on the government to set up separate budgets for AI and metaverse, in line with the Startup India program earlier.

Ajay Setia, founder and CEO of InvincibleMeta.AI said,"I think the government should allocate separate budgets for Artificial Intelligence (AI) and the Metaverse, just as it has done successfully with the Startup India program."

"Similar to how companies receive DPIIT certification under Startup India, specific companies working on advanced technologies like AI and the Metaverse could be granted certification and funding. With this kind of recognition in place, it would be easier to implement regulations for AI and Metaverse technologies as they evolve," he added.

Similarly, consulting firm Delloite has called on the government to accelerate research and development for use of AI in various areas, including tax.

"A dedicated pool of officers across direct and indirect taxes should have requisite knowledge of AI and its use. This will enable them to use AI in tax assessment, tax administration, and taxpayer facilitation. In the long run, use of AI by tax officials will help focus on non-compliant taxpayers, including early detection of non-compliance trends and taking
preventive measures," Debashish Banerjee, partner at Deloitte said.