In 1985, Rick Briggs, a NASA employee and Sanskrit (over)enthusiast, wrote an article in AI magazine [1] pointing out that for knowledge representation, one could use the Navya-Nyaya language (which in his article he called "Shastric Sanskrit"). As this (highly artificial) language (or "dialect of Sanskrit"?) had been created by the Navya Nyaya school precisely for knowledge representation (in some sense), this is not very surprising. A good description of this language is given by Ganeri ([2][3]). I think it's good to publish such articles to show "related work" across cultures (and centuries). There are no clear advantages to using this Navya-Nyaya language over some other formal language though.
In popular culture, the awareness of the existence of this paper morphed from "a particular formal dialect of Sanskrit devised by logicians for knowledge representation happens to be good at knowledge representation which we need in AI" into "Sanskrit is useful for AI" into "Sanskrit is great for computers".
[1]: https://www.aaai.org/ojs/index.php/aimagazine/article/view/4...
[2]: http://www.columbia.edu/itc/mealac/pollock/sks/papers/Ganeri...
[3]: http://www.academia.edu/download/30301777/Logic_Navya-Nyaya_...