Interim Budget 2024: Possible Boost for AI through diverse initiatives 

Budget expectations: In the Interim Budget 2024, scheduled to be announced by Finance Minister Nirmala Sitharaman on today at 11 am, the central government is expected to announce numerous initiatives in the verticals of artificial intelligence (AI) and other emerging technologies.

As part of the Union Budget announced last year, the government had remarked that it will be setting up three Centres of Excellence in AI, in the sectors of sustainable cities, health and agriculture.

Separate AI Budget 

In the upcoming budget, industry players have urged the government to set up separate budgets for AI and metaverse, in line with the Startup India program. 

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," citing media reports. 

"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 said. 

Consulting major Delloite has also called on the government to accelerate research and development for use of AI in various areas, including tax, as per media reports. 

"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, citing media reports. 

Diverse utilisation of AI 

While the Union Budget last year, focused on augmenting AI deployment in key sectors like agriculture, healthcare and sustainable cities, stakeholders in the industry also seek its expansion into prominent areas such as telecommunications. AI-powered voice agents, which have proven transformative for multiple sectors, as they bolster efficiency and user experience. 

Budgetary Support for Upskilling

According to an industry report, India faces a demand to upskill 1.62 crore workers in AI and automation to address the present skill deficit. Additionally, the country has room for the creation of 4.7 million new jobs in the technology sector alone, aimed at enhancing the proficiency of the present IT workforce, comprising of 4.6 million professionals by 2027.