Gujarat, IBM, and IAIRO Partner to Launch Industrial AI Centre of Excellence as a 'Living Lab'

The Government of Gujarat, through its Department of Science and Technology, has joined hands with the Indian AI Research Organisation (IAIRO) and IBM to establish an Industrial Artificial Intelligence Centre of Excellence (Industrial AI CoE) in Gujarat . The announcement was made on June 29, 2026, marking a significant step in advancing India's AI capabilities in the industrial sector .

Industrial AI refers to the application of AI technologies across asset-intensive sectors such as manufacturing, energy, utilities, and supply chains to enhance efficiency, safety, resilience, and quality within real-world constraints . The initiative aims to position Gujarat as a leading destination for Industrial AI leveraging sovereign AI technologies .

A 'Living Lab' for Real-World AI Innovation

The Industrial AI CoE is envisioned as a Living Lab—a collaborative space where companies, researchers, and government agencies can jointly develop, test, and pilot AI applications in real-world industrial settings before they are deployed at scale . This approach moves beyond traditional research centers by enabling practical, hands-on experimentation with AI technologies.

The Centre will focus on:

• Technology innovation and demonstrations through pilot programs that leverage and advance sovereign AI technologies 
• Collaboration and knowledge exchange among industry, academia, startups, researchers, and government through workshops, conferences, technical sessions, and stakeholder engagements 
• Skill development and capacity building through academic partnerships, research initiatives, hackathons, and training programs in emerging AI technologies 

Strategic Advisors and Ecosystem Builders

As part of the collaboration, IBM and IAIRO will serve as technical and strategic advisors to the Gujarat government's Department of Science and Technology . Their role includes providing expertise in:

• Industrial AI technologies
• Sovereign AI technologies
• Enterprise asset management platforms
• Best practices to scale AI adoption across industrial sectors 

Sriram Raghavan, General Manager of IBM Software India and Software Innovation Lab, emphasized the strategic importance of the initiative: "Scaling the application of AI is rapidly emerging as a strategic imperative for manufacturing and industrial organizations aiming to enhance operational resilience and unlock new productivity gains" .

Industrial AI: A Strategic Imperative

According to the IBM IBV India AI study, 60% of executives already identify manufacturing and industrial development as India's largest growth opportunity by 2030 . With Gujarat contributing nearly 16% of the country's industrial production, the state is uniquely positioned to lead this transformation .

Dr. Amit Sheth, Founding Director of IAIRO, highlighted the importance of the initiative: "The next generation of industrial systems will require AI that combines learning with domain knowledge, human expertise, and trust. Translating these capabilities into real-world impact requires an ecosystem where research, policy, and enterprise innovation evolve together" .

Workforce Development and Skill Building

A major focus of the Industrial AI CoE will be skilling and talent development. The partners plan to work with academic institutions to organize research programs, hackathons, and specialized training in emerging AI technologies to create industry-ready talent .

The initiative aims to:

• Build a pipeline of AI-skilled professionals
• Equip the existing workforce with the expertise required for AI-driven industrial environments
• Foster a sustainable ecosystem that continuously feeds into the state's economic expansion 

Sovereign AI and Indigenous Innovation

A key element of the collaboration is the emphasis on sovereign AI technologies—AI systems developed and deployed with national security, data sovereignty, and indigenous innovation at their core . The CoE aims to advance indigenous innovation and strengthen India's leadership in trustworthy Industrial AI .

The initiative also plans to contribute to the development of AI frameworks, reference architectures, standards, and best practices to enable responsible and scalable AI adoption across industries .

Gujarat's Growing AI Ecosystem

The announcement builds on Gujarat's existing investments in AI infrastructure and innovation ecosystems . The state has previously launched three AI Centers of Excellence focused on sustainable cities, healthcare, and agriculture . The new Industrial AI CoE adds a manufacturing and industrial dimension to Gujarat's AI ambitions, positioning the state as a comprehensive AI hub .