AI Governance in India is entering a transformative phase as state governments launch automation-driven, ethically grounded initiatives. From transport safety pilots in Uttar Pradesh to full-fledged AI policy frameworks in Rajasthan, India is blending technology with public welfare like never before.
Road Safety Innovation in Uttar Pradesh
Uttar Pradesh has become the first Indian state to launch a state-backed AI and Big Data road safety pilot, following approval from the Ministry of Road Transport & Highways. The ₹10 crore initiative—led by ITI Limited in partnership with mLogica—comprehensively integrates accident analytics, weather data, vehicle telematics, driver records, and infrastructure mapping to detect crash hot‑spots and risk triggers. The pilot phase will span six weeks and carries no financial liability for the Union government.
If validated, the initiative could scale into broader digital governance upgrades—including faceless licensing, e-challan systems, enforcement modernisation, and interoperability with Vahan‑Sarathi platforms for alerts and risk profiling.
Rajasthan’s AI Policy 2025 Blueprint
Rajasthan is poised to launch a comprehensive Rajasthan AI Policy 2025, designed to position the state as a national leader in ethical AI adoption. The policy rests on three central pillars: government-level ethical AI frameworks, widespread skill development and research support, and extensive digital infrastructure buildout. Provincial authorities plan to establish a Centre of Excellence for AI to drive innovation in collaboration with startups, academia, and private stakeholders.
Key initiatives include:
- ₹1,000 crore investment in four Atal Innovation Studios and Accelerators to foster high-impact projects across sectors like agriculture and digital arts (AVGC‑XR).
- A Data Centre Policy 2025 to attract private investment and develop a state-level secure digital ecosystem.
- Deployment of a large-scale Bhamashah State Data Centre with Tier-4 infrastructure and near-100% uptime assurance.
These moves align with national India AI Mission goals, emphasising ethical, inclusive, and innovation-driven growth.
EU AI Governance & Global Implications
On the global stage, the European Union is reinforcing its AI governance framework as of August 2, 2025. This enforcement milestone brings into force the rules under its General-Purpose AI Code of Practice, a voluntary but influential guideline for providers like Google, OpenAI, and Microsoft. It emphasises transparency of training data, copyright compliance, security-by-design, and risk assessment protocols. Violating firms could face fines up to 7% of global turnover itpro.com.
Responses vary: Google and Microsoft plan to sign the full code, xAI will only commit to the safety & security chapter, while Meta has rejected it entirely—citing overreach and uncertainty. These developments set important precedents for how nations like India craft AI governance policies.
Strategic Outlook & Broader Impact
India’s twin approach—fielding tactical AI pilots at the state level and implementing forward-looking policies and infrastructure investments—offers a scalable model for ethical public sector transformation. As states like Uttar Pradesh and Rajasthan experiment with automation and prepare for broader rollouts, India may generate replicable frameworks for governance, innovation, and social impact.
At the same time, international developments—including the EU’s AI Code enforcement and multinational tech firms’ responses—underscore the growing importance of transparent, accountable, and human-centric AI practices.
What’s unfolding is a pivotal shift in how AI is being integrated into public services across India: from safety and infrastructure to policy and ethics. These initiatives signal India’s intention not just to adopt AI, but to shape it in alignment with democratic values and public welfare.
