India's governance model is evolving with a focus on integrating Artificial Intelligence (AI) to enhance public systems at the grassroots level, particularly in the panchayat framework. With 264,211 gram panchayats and significant financial transfers through Direct Benefit Transfer systems, the potential for AI to create more responsive governance is substantial. NITI Aayog's national AI strategy highlights priority sectors such as healthcare, agriculture, and education, projecting that AI could contribute $500–600 billion to India's economy by 2035. Recent initiatives, like the SabhaSaar tool, convert meeting audio into structured minutes, showcasing how AI can streamline local governance. However, the success of AI in governance hinges on its alignment with local realities and the involvement of grassroots organizations, ensuring that data reflects actual community needs. As India lays the groundwork for intelligent governance, the focus will be on enhancing the quality and effectiveness of last-mile service delivery.