Budget 2026 Artificial Intelligence Policy: While presenting the Union Budget on Sunday, Union Finance Minister Nirmala Sitharaman described Artificial Intelligence (AI) as an important part of India’s future development strategy. The mention of AI Governance along with the use of AI in the budget is a clear indication that the government no longer wants to limit this technology to just innovation, but is preparing to include it in the framework to policy, transparency and trust. In the coming time, its direct impact can be seen on the government services provided to common citizens.

The role of AI will increase in administration and tax system

In the budget speech and government documents, AI has been considered as a tool to strengthen administration, tax system, digital services and data-based decisions. The government believes that with the help of AI, decisions can be more fast, accurate and effective. This will help in reaching the benefits of government schemes to the right people and bringing transparency in the system.

There is risk with AI, hence governance is necessary

The government has also acknowledged that the increasing use of AI also comes with some risks. Issues like data security, privacy, transparency and algorithmic bias can become big challenges in the future. For this reason, AI Governance has been described as very important at the policy level in the budget, so that the technology is not misused and the rights of the citizens are protected.

What is the meaning of AI Governance?

The purpose of AI Governance is not just to make strict laws or rules. Its aim is to ensure that AI systems are developed and implemented in a safe, ethical and reliable manner. This includes aspects like responsible use of data, transparency in AI decisions and protection of interests of common citizens. Also, proper use of AI tools for better communication between the government and the public will also be a part of it.

India will adopt balanced approach

The government’s new stance indicates that India wants to adopt a balanced policy regarding AI. On one hand, startups, research and innovation will be encouraged, while on the other hand, a techno-legal framework is being prepared to prevent misuse of technology. Work on policies and laws in this direction is ongoing.

AI Mission, Quantum Mission and Innovation Fund

The Finance Minister said in the budget speech, “AI will be used extensively in the future.” He said that to strengthen the technical sector, the government is launching ‘AI Mission’, ‘Quantum Mission’ and ‘Innovation Fund’ Will resort to. These initiatives are expected to give new impetus to technology and innovation in the country.

AI will become force multiplier in good governance

Finance Minister Nirmala Sitharaman said that “Advanced technology including Artificial Intelligence (AI) can play the role of force multiplier for India’s economic growth.” He believes that these technologies will not only increase productivity, but will also completely change the way governance, industry and service sectors work.