Budget 2025-26: Invest in AI education, upskilling, private sector ties

An AI regulation gives comfort around privacy, permissible purpose, ethical and secure AI, said Rajnil Mallik, Partner & Gen AI GTM Leader, PwC India

A PwC report  AI    Key challenges 

- The government should invest in AI education, upskilling and collaborating with the private sector to scale effectively

- Clear and robust legislation should be enacted to balance innovation with accountability, establishing guidelines for safe AI usage

- Initiatives should be launched to responsibly educate the public and encourage participation across all segments of society 

- Emphasising the development of indigenous technologies and solutions to ensure AI is secure 

- Current framework needs to prioritise high impact areas and distribute the budget according to these priorities.     Industry ask 

- Invest in AI infra such as high-end hardware, software, and their supporting ecosystem

- Increased funding for AI research through a greater thrust on R&D such as academic institutions, innovation centers, and a thriving startup ecosystem 

- Prioritised financing options and tax incentives for firms investing heavily in AI R&D, running AI upskilling programmes for educational institutes or relevant bodies working in the priority sectors such as agri, health, and defence     

"An AI regulation gives comfort around privacy, permissible purpose, ethical and secure AI. it should be sector-specific and take into account the net impact of adoption at scale for the sector," said Rajnil Mallik, Partner & Gen AI GTM Leader, PwC India.