TN thrives on AI in makeover to tech-driven economy, beat other states

From planning artificial intelligence (AI) laboratories (labs) across the state and setting up a Centre of Excellence for AI to collaborating with global majors like Google, PayPal, Applied Materials, Amazon Web Services (AWS), and many other investors, Tamil Nadu is moving a step ahead of other states in the AI revolution in India, with Chenn-AI being the epicentre of that. 

Last week, the Government of Tamil Nadu announced the setting up of a 2 million square foot facility for AI in Coimbatore under the public-private partnership mode, taking another giant leap in spreading its AI ambitions to multiple cities. 

Not just that, at the application level, the state is marching ahead of others by implementing measures like a facial recognition-based attendance system in 3,000 government schools and offices, using AI to help farmers with updates, improving the traffic system in Chennai, and introducing the ambitious e-Paarvai (eyesight) system, an intelligent mobile application leveraging AI to identify the presence of cataracts in screened individuals. A major advantage for the state is Google’s initiative to set up the Tamil Nadu AI Labs, one of its largest globally. 

“Tamil Nadu is always ahead of others in promoting industries, information technology (IT), and other emerging sectors. In line with the emerging changes in technology (tech), the state government is actively pursuing transformative fields such as AI, blockchain, the Internet of Things, and electric vehicles,” Chief Minister M K Stalin said on Friday, addressing the state’s flagship tech summit UmagineTN 2025. Interestingly, the government is also establishing a Centre of Excellence for AI with AI lab infrastructure. The AI labs will be offered to startups, academics, and other parties for a subsidised fee to foster research and development around AI. 

According to sources, the interests of these companies may even revolutionise the transportation system in Chennai as an AI-enabled one. It may link the suburban rail to buses and taxi services under one platform. Google is also targeting the training of 2 million youth in AI through a curriculum-based approach, starting from engineering colleges in the state. Tamil Nadu contributes 17 per cent of engineers — the highest by any state — of the 1.5 million graduating in India annually. “In the case of AI, Tamil Nadu has emerged as a leader in India. The state has a vision to integrate AI as a key driver in its ambition to become a $1 trillion economy. Historically known for its agrarian roots, Tamil Nadu is rapidly transforming into a tech-driven economy, spanning industries from semiconductor to AI,” said Jibu Elias, an AI ethicist and country lead (India) for Responsible Computing Challenge at Mozilla Foundation. 

“Around 85 per cent of skilled labour in the sector are local Tamilians, a large proportion of whom are women. Unlike many states where tech progress is concentrated in a single city, Tamil Nadu’s tech and AI advancements are distributed across multiple smaller cities, fostering more inclusive growth and regional development,” Elias said. 

Unlike Karnataka and Telangana, Tamil Nadu is expanding its digital footprint to more cities with new IT parks in cities such as Coimbatore, Salem, Madurai, and beyond.

Techquake 

AI investments in Tamil Nadu

• Amazon Web Services: Will launch GenAI startup hub programme in partnership with iTNT hub
• PayPal: Setting up development centre in Chennai, to create 1K jobs
• Applied Materials: Establishing an advanced AI-enabled tech centre for semicon manufacturing  in Taramani, to create 500 jobs
• Google: Partnering Naan Mudhalvan to skill 2 million youth in AI