IBM has signed a memorandum of understanding (MoU) with the Gujarat government to establish an artificial intelligence (AI) cluster at the Gujarat International Finance Tec (GIFT) City. This initiative aims to leverage IBM’s GenAI platform watsonx to drive innovation and collaboration among financial institutions within GIFT City.
Under the agreement, IBM will provide financial institutions with support for proof of concept, access to AI Sandbox, AI literacy programs, and digital assistant solutions. The cloud-based platforms will enable these institutions to refine large language AI models (LLMs) in a sandbox environment, facilitating the deployment of customized LLMs tailored to their specific needs.
Additionally, IBM will develop an AI-centric curriculum for schools and universities across Gujarat and offer certification programs to upskill professionals in the state. This effort aligns with IBM’s global initiative to train 30 million people by 2030, including 2 million learners in AI by 2026.
Gujarat Chief Minister Bhupendrabhai Patel expressed optimism, stating, “This MoU with IBM will help Gujarat lead the country in adopting AI and driving digital transformation.”
Sandip Patel, Managing Director of IBM India and South Asia, emphasized the significance of the collaboration, aiming to accelerate Gujarat’s digital transformation. He noted, “By establishing this AI cluster, our aim is to make the latest AI solutions easily accessible to the vibrant and growing number of financial institutions in GIFT City.”
The establishment of the AI cluster is expected to enhance GIFT City’s prominence, coinciding with GIFT Nifty achieving its highest monthly turnover in June. This development underscores the growing adoption of AI in India’s financial services and fintech sectors to enhance efficiency, reduce costs, and improve customer service.
With GenAI solutions potentially digitizing and automating redundant manual processes, Indian startups like Gnani.ai, Slang Labs, Vitrai.AI, and Alltius are actively contributing to the burgeoning GenAI ecosystem, attracting significant investor interest. Domestic GenAI startups have raised over $600 million between 2019 and 2023, reflecting robust growth prospects.
The initiative aligns with the Centre’s efforts to position GIFT City as a global financial hub and a virtual offshore destination, attracting both global and domestic investors. Earlier initiatives include Chennai-based Unifi Capital launching new funds at IFSCA and a $23 million loan agreement between the Union Government and the Asian Development Bank (ADB) to boost fintech research and innovation at GIFT City.
