Bengaluru, March 1 Karnataka is positioning the AVGC sector at the heart of its AI-driven creative economy, with a focus on intellectual property creation, responsible AI adoption, and large-scale skill development, state Minister Priyank Kharge said on Sunday.
Speaking at the concluding ceremony of Bengaluru GAFX 2026, Kharge, who holds portfolios of information technology and biotechnology, outlined a comprehensive roadmap to transition the state from a service-led ecosystem to one driven by original IP ownership and global storytelling leadership.
"The Animation, Visual Effects, Gaming, and Comics (AVGC) sector today is not just about animation or gaming; it represents digital exports, cultural influence, youth employment, and India's creative soft power in a rapidly evolving AI-driven world," he said, underscoring the sector's growing strategic and economic importance.
The minister said that artificial intelligence was transforming animation and gaming workflows through faster concept creation, automated processes, dynamic environment generation, and reduced production timelines.
He noted that AI tools could reduce production costs by 25-40 per cent in certain animation processes, enabling smaller studios to compete globally.
Highlighting concerns such as employment disruption, IP ambiguity in AI-generated content, skill mismatches, and ethical risks, including deepfakes, Kharge announced that Karnataka would establish a Responsible Use of AI framework involving technologists, legal experts, and industry stakeholders.
He said that the state would strengthen its AVGC-AI mission, develop structured IP guidelines covering datasets and royalty mechanisms, and expand grants of up to Rs 50 lakh for original IP creation under the Elevate program.
A Creative Tech Skill Grid will support reskilling and upskilling, while creative clusters will be developed across Karnataka under a hub-and-spoke model beyond Bengaluru, according to the minister.
He added that Karnataka will also introduce a regulatory sandbox mechanism to enable innovators to test emerging technologies before formal policy frameworks are put in place, reinforcing its first-mover advantage in the AVGC domain.