Patna: The Bihar cabinet on Wednesday approved the Bihar Artificial Intelligence Policy 2026, aimed at attracting AI companies, promoting innovation, creating skilled employment opportunities and expanding the use of artificial intelligence across governance and key economic sectors.
According to a press note issued by the state’s Information Technology Department, the policy seeks to establish Bihar as a leader in AI-driven governance, innovation and the digital economy.
The government plans to promote research, accelerate the adoption of AI across industries, develop a large pool of AI-skilled workers and build an ecosystem to support inclusive economic growth and sustainable development.
Financial incentives for AI companies
The policy proposes a range of financial incentives to attract AI-focused companies, startups, digital enterprises, Global Capability Centres (GCCs) and other businesses to Bihar.
The proposed incentives include capital investment subsidies, interest subvention, cloud infrastructure usage incentives, lease rental subsidies and power tariff subsidies.
Businesses may also receive employment generation subsidies, including support for contributions to the Employees’ State Insurance (ESI) and Employees’ Provident Fund (EPF) schemes. Other incentives listed in the policy include certification reimbursement, AI model development incentives, export incentives and additional support.
The government has also proposed tailor-made incentive packages for eligible units. The press note does not specify the incentive rates, eligibility criteria or financial limits.
Support for AI startups and research
The policy aims to support AI startups through incubation facilities, financial assistance, mentoring, innovation challenges and market access.
It also proposes establishing Centres of Excellence, strengthening collaboration between industry and academic institutions, and facilitating the development and commercialisation of intellectual property.
The government intends to encourage AI solution providers, system integrators and data service firms to invest in AI-based business activities in the state.
To support this ecosystem, the policy envisages infrastructure such as innovation hubs, data and computing facilities, IT parks and plug-and-play facilities.
You may like to read this article as well:
Bihar Government Pushes AI-Driven Growth Agenda, Seeks Expert Input on Draft Policy 2026
AI adoption in agriculture, healthcare and education
The policy identifies governance and several priority sectors for greater adoption of artificial intelligence, including agriculture, healthcare, education, manufacturing and urban services.
According to the department, the use of AI in these areas is intended to improve operational efficiency, transparency and service delivery.
The government also aims to develop a workforce equipped with AI-related skills to meet the needs of emerging businesses and industries.
The policy’s broader objective is to attract investment, promote research and innovation, and generate high-value employment opportunities while strengthening Bihar’s digital economy.
