Name: Harishkumar .R
Country: India

Year: 2026
Volume: Vol-16, issue-1, Year-2026 (JUNE special issue ) Special Issue: Ai, Ethics and Human Values : Shaping the Future of Higher Education
Page Number: 19-31
DOI: https://doi.org/10.5281/zenodo.21489997

ABSTRACT
Artificial Intelligence (AI) has emerged as a transformative force reshaping the global digital economy through automation, predictive analytics, machine learning, robotics, cloud computing, and data-driven decision-making. In India, Karnataka occupies a strategic position in this transformation due to its strong information technology ecosystem, startup culture, innovation networks, skilled human capital, and globally connected service sector. This study examines the impact of AI on the digital economy and broader economic transformation of Karnataka State, with particular emphasis on productivity, employment, industrial modernization, governance, digital inclusion, and regional development. Karnataka, with Bengaluru as its technology capital, contributes significantly to India’s software exports and hosts a large share of the country’s startups, Global Capability Centres (GCCs), and AI talent pool. Karnataka’s Gross State Domestic Product (GSDP) was estimated at nearly ₹30.