A nearly two-decade-old software and BPO project in east Bengaluru has been restructured into a medical college proposal after promoters cited artificial intelligence disruption and slowdown in the IT sector.
The Karnataka government has reportedly approved diversion of around nine acres of previously allotted land for the new healthcare education project.
IT project approved in 2006
Mysore IT Solutions Pvt Ltd had received approval in 2006 for a software development and business process outsourcing centre at Kadubeesanahalli in Varthur.
The land was acquired by the Karnataka Industrial Areas Development Board in phases.
However, prolonged litigation over land acquisition delayed implementation for several years.
Company cites AI impact
According to filings, the company informed authorities that market dynamics had changed significantly.
It reportedly said rapid advances in automation and artificial intelligence were disrupting traditional IT and BPO operations, reducing demand for fresh infrastructure.
The filing also referred to hiring slowdown and job losses across major technology firms.
Medical college gets nod
Following the change request, the government has approved development of a state-of-the-art medical sciences and research centre along with a multidisciplinary technology institute.
The proposed investment has reportedly increased sharply from about ₹44.97 crore for the original software project to ₹410 crore for the revised plan.
Sign of changing economy
The move is being seen as another sign of how AI and automation are reshaping investment priorities, real estate demand and employment patterns in the technology sector..