Odisha Artificial Intelligence Policy 2025: Building An Inclusive And Responsible AI Ecosystem

Policy Update
Shailja Singh

Background

Artificial Intelligence (AI) is gaining ground as a transformative force in public administration, economic production, and public services. But for states, the challenge is not just adopting new technologies but creating the ecosystem to support their widespread and responsible use. Odisha Artificial Intelligence Policy 2025 was notified by the Electronics & Information Technology Department on 18 June 2025 [1].

The need for a separate AI policy in Odisha is also determined by the fact that it encounters some state-specific problems. They include the enhancement of digital and computing infrastructure in places outside urban centers, the development of AI competencies in students, professionals, and government workers, and the creation of access to quality data sets. Finally, another challenge is the need to bring AI technologies to remote and underprivileged regions and make them available in local Odia, tribal languages, and so on. These challenges also raise questions about the feasibility of implementing the policy uniformly across the state, particularly in areas where infrastructure, technical capacity, and digital access remain limited.

The state seeks to benefit from AI innovations while addressing social and economic challenges through better-governed and accountable policy design. Odisha Artificial Intelligence Policy-2025 views AI as part of a development strategy and considers the technology’s role in healthcare, education, agriculture, disaster management, and governance. The state emphasizes five strategic choices: enhancing human capabilities, scaling solutions, innovating while ensuring security and regulatory compliance, leveraging external partnerships, and focusing on long-term impact [1]. The Odisha budget 2025–26 has allocated ₹20 crore to the Odisha AI Mission with an overarching vision for the deep-tech innovation ecosystem [2]. The State Economic Survey 2025–26 highlights the importance of AI in emerging technology ecosystems and focuses on four pillars of AI readiness: connectivity, compute, context, and competency [3].

Functioning

The Odisha AI Policy-2025 promotes sustainable AI innovation [1]. The four pillars of the policy are infrastructure, skills, energy and a conducive policy environment. These will be implemented through the Odisha AI Mission, AI Cell, AI Taskforce, government departments, educational institutions and partnering industry and stakeholders [1][4].

Infrastructure

The policy promotes connectivity and computing capabilities, which will boost the adoption of AI in the state. Interdepartmental coordination will be ensured by the Odisha AI Mission and AI Cell. The policy promotes cloud-based solutions, participation in national AI infrastructure development initiatives, IndiaAI ecosystem linkages, and open data and interoperability frameworks [1]. The Odisha Budget for 2025–26 has allocated ₹20 crore to the Odisha AI Mission [2], providing initial financial support for implementation. However, the adequacy of this allocation for meeting the policy’s longer-term requirements cannot yet be determined from the available budget allocation alone. The expansion of computing infrastructure, connectivity, skills development, and responsible AI systems is likely to require sustained financial investment over time.[1].

The state targets to achieve 5 MW of computing power by 2025, 10 MW by 2029, and 45 MW by 2036 [1]. The attainment of these targets will depend on the availability of reliable electricity supply, appropriate computing infrastructure and connectivity, technical expertise and investment. This means that the gap between the establishment of a policy framework and the development of the institutional and physical capacities to deliver on the targets should be monitored during implementation. Hence, the demand for reliable and cheap electricity is expected to rise substantially, which the policy’s emphasis on renewable energy is poised to address. Finally, note that providing AI-based solutions beyond state capitals will require connectivity and infrastructure, including in rural areas. These considerations will be critical in evaluating the state’s infrastructure preparedness as the policy transitions from design to implementation.

Skills and Human Capital

The policy has a primary objective of developing AI capabilities through school education, higher education, and training programs for students, professionals, and government officials. The programs will be realized through collaborations with educational institutions, industries, and start-ups [1]. The policy targets 8000 citizens trained in AI skills annually and 75 percent of government officials trained by 2029 and 100 percent by 2036 [1].

It will be critical to evaluate the process by which the state will measure the number of individuals who have obtained certifications in AI and the overall impact on their placements. Similarly, the state should report on the percentage of people who have retained AI skills and the applications in use by government agencies and other organizations. This information will help demonstrate how the policy will result in sufficient training and capacity-building, leading to sustainable skilled professional labor and increased AI applications.

Energy

The policy acknowledges the importance of a constant and cheap electricity supply for AI infrastructure and the need to raise the share of renewables in electricity production for the development of the region. The strategy is aimed at providing 50 percent of electricity from renewables by 2029 and 65 percent by 2036 for AI infrastructure [1].

Nevertheless, the sustainability of AI infrastructure will be determined by the efficiency of energy use, water consumption associated with data-centers, and carbon intensity of computing facilities. Accordingly, with the development of AI infrastructures, the state should ensure the transition to energy-efficient facilities and monitor their resource use to ensure sustainable development. These aspects and the growing need for the development of AI infrastructures will affect the sustainability of the state’s computing power in the future.

Policy Environment

The policy recommends ethical principles promoting responsible AI while addressing issues associated with bias, privacy concerns, transparency, and accountability. In addition, the policy emphasizes strengthening data governance and cybersecurity frameworks while ensuring compliance with the country’s Digital Personal Data Protection Act, 2023 [1]. The Odisha AI Policy-2025 will be implemented with the help of the Odisha AI Mission and an institutional two-tier framework consisting of an AI Taskforce and an AI Cell [1][4].

To ensure accountability, AI software, especially in critical fields such as health, social welfare, policing, and disaster response, should be routinely audited for their algorithms and have clear responsibility mechanisms. Moreover, human oversight should be required for all essential decisions, while citizens have the right to question or complain about the outcomes produced by artificial intelligence systems. The Operational Guidelines for the Odisha Artificial Intelligence Policy-2025 were published on 30 March 2026, giving a procedure for implementing the given policy [5].

Performance

As Odisha’s AI policy is relatively new, performance assessment should focus on the establishment of institutional frameworks, budget allocation, and initial implementation rather than short-term outcomes. First, the policy has so far created the institutional framework needed to facilitate cross-sectoral coordination and decision-making on AI. The Odisha AI Mission will be responsible for driving the state’s AI agenda, with the AI Cell providing technical and managerial support to meet the needs of different government departments [1][4].

Second, the policy provides for budgetary allocation for AI capacity building, with ₹20 crore allocated to the Odisha AI Mission under the 2025–26 budget [2]. Third, the State Economic Survey 2025–26 shows that Odisha has progressed beyond policy design and is now focused on building an ecosystem around AI [3].However, these developments should be understood primarily as indicators of institutional and ecosystem-building progress rather than evidence of policy impact. The establishment of institutions, budgetary allocations, and proposed initiatives demonstrates progress in implementation, but it does not by itself establish whether AI adoption has improved public services, productivity, employment, or citizen outcomes. This includes the envisaged creation of an AI and Machine Learning Centre of Excellence in Bhubaneswar, Emerging Technology Centre initiatives, start-up incubation, innovation challenges, and the AI Mission institutional framework [3].

The policy’s performance can also be measured using the targets it has set for infrastructure, education, and skills. The proposed increase in computing infrastructure from 5 MW to 10 MW and then to 45 MW by 2036 is a useful metric for the policy’s implementation [1]. The plan to establish seven AI innovation centers, expand AI education, and skill 8,000 people in AI annually can also be used to measure the policy’s performance [1][3].

A more comprehensive assessment would require both output and outcome indicators. Output indicators could include computing capacity created, citizens and officials trained, innovation centres established, and AI applications deployed. Outcome indicators could include employment and placement outcomes, the number of government services using AI, citizen uptake of AI-enabled services, improvements in service delivery, and the extent to which AI solutions reach rural and underserved communities.

However, the impact of the policy on service delivery, employment generation, productivity, and citizen welfare remains to be seen. There is a need to distinguish between policy formulation, implementation, and impact assessment in the years to come.

Impact

The Odisha AI Policy-2025 could have several positive effects on the state’s economy and public services. First, AI could enable the State government to analyse large volumes of data, identify patterns, and support more informed decision-making. Second, the policy could facilitate citizen-centric services through voice-based and multilingual AI models, which may improve accessibility and inclusiveness for populations with lower levels of digital literacy [1].

Moreover, the policy could support the adoption of AI in critical areas such as agriculture, healthcare, and disaster management. AI-based tools may contribute to precision farming and smart agriculture solutions, while potentially supporting diagnostic capabilities and patient care in healthcare [1]. Similarly, the adoption of AI in disaster management could complement Odisha’s existing experience in cyclone management and strengthen disaster prediction and response mechanisms [1]. Education and skilling may also benefit from the policy’s focus on creating awareness about AI at the school level and enhancing AI-related knowledge among learners and government workers [1]. Additionally, AI-enabled public services could become more accessible and efficient and may support greater citizen engagement if implemented effectively [1]. The development of datasets and AI models in Odia and tribal languages could further improve the inclusiveness and accessibility of AI solutions in the state [1].

However, these potential benefits have yet to be fully demonstrated, as the policy was notified in 2025 and its Operational Guidelines were published in 2026. Therefore, the current impact assessment is largely limited to the anticipated benefits of the policy rather than demonstrated outcomes. There is a need for concrete evidence to assess the effectiveness of AI in improving service delivery, employment, productivity, and citizen well-being. Future assessments should therefore examine measurable outcomes of AI investments and implementation across different sectors. If implemented effectively and monitored through appropriate outcome indicators, the Odisha AI Policy could provide a foundation for promoting sustainable, responsible, and inclusive AI applications across the state.

Emerging Issues

Data Governance and Privacy

The implementation of AI systems will require access to high-quality and reliable datasets. This also brings important concerns related to data governance and privacy. Data protection, confidentiality, informed consent, and accountability will need to be ensured in the collection and use of data [1].

Responsible and Accountable AI

The use of AI in critical areas such as healthcare, social welfare, law enforcement, and disaster response may raise ethical and social concerns. These may include algorithmic discrimination, privacy risks, and limited transparency in AI-assisted decision-making. Appropriate human oversight and clear accountability mechanisms will be necessary to support responsible AI deployment [1].

Institutional Coordination

Effective implementation of the policy will depend on coordination among the Odisha AI Mission, AI Taskforce, AI Cell, government departments, educational institutions, industry, and other stakeholders. Differences in institutional responsibilities or weak coordination could delay the implementation of AI initiatives. Clearly defined roles, reporting mechanisms, and regular coordination will help translate the policy framework into programmes and measurable outcomes [1].

Procurement and Vendor Dependence

The adoption of AI solutions may involve greater reliance on private technology providers and external vendors. Excessive dependence on a limited number of vendors could create concerns related to costs, interoperability, data security, and long-term control over AI systems. Transparent procurement processes, appropriate technical standards, and safeguards for data and system portability will become increasingly important as AI applications expand.

Regional and Digital Inequalities

Unequal access to AI technologies could deepen existing social and digital inequalities in Odisha. Extending AI applications beyond urban centres and ensuring their accessibility in Tier II and Tier III regions will remain an important implementation challenge [1].

Employment and Workforce Disruption

The growing use of AI may affect employment patterns, particularly in occupations involving routine or repetitive tasks. While AI could create new opportunities in technology and related sectors, some existing roles may also change as the demand for different skills increases. Reskilling and upskilling programmes can help workers adapt to these changing requirements and ensure that the benefits of AI adoption are more widely shared.

Measuring Policy Outcomes

The performance of the Odisha AI Policy-2025 will need to be assessed through clear and measurable indicators. These could include the number of AI initiatives launched by government entities, citizens and officials trained, AI applications deployed, and employment or reskilling outcomes. Tracking the number of citizens benefiting from AI-enabled services would also help assess the policy’s effectiveness and impact over time.

Way Forward

The next phase of the Odisha AI Policy-2025 should focus on translating its broad targets into practical and measurable steps. During the first year, the Odisha AI Mission, AI Cell, and AI Taskforce should work with individual departments to prepare their AI action plans, clearly assign responsibilities, and put in place a common system for monitoring progress. This could be tracked through indicators such as the number of departments with approved action plans, AI initiatives taken up, and implementation reviews completed [1][5].

Over the following two to three years, attention should shift towards building the infrastructure, skills, and practical applications needed to support wider AI adoption. The Odisha AI Mission, together with relevant government departments, educational institutions, and industry partners, should review progress annually against the policy’s targets of 5 MW of computing capacity, training 8,000 citizens each year, and training 75 percent of government officials by 2029. Measures such as additional computing capacity, the number of people trained or certified, AI applications put into use, and the number of departments adopting AI-based solutions can provide a clearer picture of progress [1].Financial monitoring should also form part of this assessment, including tracking expenditure against major AI initiatives and identifying whether additional resources are required as implementation expands.

The development of AI should also be accompanied by safeguards for its responsible use. Within the first two years, the AI Taskforce and AI Cell should put in place arrangements for algorithmic audits, human oversight, grievance redressal, data protection, and vendor accountability, particularly where AI is used in high-impact public services. Their implementation could be reviewed through indicators such as the number of high-risk AI systems audited, grievances received and resolved, and compliance with relevant data-protection and cybersecurity requirements [1][5].

By 2029, the state should assess its progress towards the policy’s target of using renewable energy for 50 percent of AI infrastructure. This assessment should also consider the growing energy and resource requirements of expanding computing facilities, with relevant departments and infrastructure operators reporting annually on renewable-energy use and resource efficiency [1]. At the same time, the state should examine whether AI-related training is leading to meaningful employment and reskilling opportunities by tracking certifications, placement outcomes, participation in reskilling programmes, and retention of trained professionals.

A broader review should be undertaken by 2036 to assess progress towards the policy’s long-term targets of 45 MW of computing capacity, 100 percent AI-trained government officials, and 65 percent renewable-energy use for AI infrastructure [1]. The review should go beyond target achievement and examine whether AI adoption has contributed to improvements in public service delivery, employment, inclusion, and citizen welfare.

The policy provides Odisha with opportunities to expand its AI infrastructure, strengthen public services, build skills, and encourage innovation. However, achieving these outcomes will depend on sustained investment, effective coordination, and safeguards that keep AI deployment responsible and inclusive. A transparent and time-bound monitoring system should therefore remain a key priority, allowing the state to assess progress through measurable outcomes and make adjustments based on implementation experience.

Selected References and Important Links

1. Government of Odisha, Electronics & Information Technology Department. (2025). Odisha Artificial Intelligence Policy-2025 . Resolution No. 3227/E&IT, dated 18 June 2025. https://dowr.odisha.gov.in/sites/default/files/2025-07/Odisha%20AI%20Policy-2025.pdf

2. Government of Odisha, Finance Department. (2025). Annual Budget 2025–26: Budget Highlights. Government of Odisha. https://finance.odisha.gov.in/sites/default/files/2025-03/Annual%20Budget%202025-26%20Highlights%20English%20Final_17.02.2025.pdf

3. Government of Odisha, Planning & Convergence Department. (2026). Odisha Economic Survey 2025–26 . Government of Odisha. https://des.odisha.gov.in/en/pages/publication

4. Government of Odisha, Electronics & Information Technology Department. (2025). Odisha Artificial Intelligence Policy-2025: Governance and Odisha AI Mission framework.https://dowr.odisha.gov.in/sites/default/files/2025-07/Odisha%20AI%20Policy-2025.pdf

5. Government of Odisha, e-Gazette. (2026). Operational Guidelines for Odisha Artificial Intelligence Policy-2025, dated 30 March 2026.

https://egazette.odisha.gov.in/extraordinary_archival_dept/72/1

6. Chief Minister’s Office, Government of Odisha. (2026). Closing Ceremony of Odisha Skill Competition.9January2026. https://cm.odisha.gov.in/en/latest-news/closing-ceremony-odisha-skill-competition

7. Press Information Bureau, Government of India. (2025). Bhubaneswar Prepares to Host the Regional AI Impact Conference. Ministry of Electronics & Information Technology, 17 December 2025. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2205412&reg=48&lang=2

8. Government of Odisha / Odisha Computer Application Centre. (2026). RFP for Selection of System Integrator for Implementation, Operation & Maintenance of AI Based Solutions for Delivery of Various G2C Services of Government of Odisha. https://www.odisha.gov.in/sites/default/files/2026-04/RFP-26023_Vol-II-Terms%20of%20Reference.pdf

About the Contributor

Shailja Singh is a third-year B.A. (Hons.) Political Science student at the University of Delhi. Her academic interests include public policy, governance, digital governance, and international relations. She is particularly interested in understanding policy processes, institutional frameworks, and emerging governance challenges. As a Policy Research Intern at IMPRI, she is developing her research and analytical skills while contributing to work on contemporary policy issues.

Acknowledgement

The author sincerely thanks the IMPRI team for their guidance and support throughout the preparation of this Policy Update. The author also acknowledges the valuable feedback and constructive suggestions provided by the reviewers, which helped improve the clarity, structure, and analytical depth of the article.

Reviewers

PRAGYA AND SHRUTI CHANDRA

Disclaimer

This article is intended for academic purposes only. The views expressed are those of the author and do not necessarily reflect the views of IMPRI or any government.