Focused Regulation for AI Advancement in India

Call for Focused Approach to AI Regulation in India

India is at a pivotal juncture concerning the regulation of artificial intelligence (AI), with a pressing need for a unified regulatory framework that aligns with its robust services-based economy. This economy spans diverse sectors, including IT services, telecommunications, e-commerce, healthcare, and financial services. These factors position India as a significant data repository capable of driving the development of AI, specifically Generative AI (GenAI).

The Indian government has recognized the transformative and economic potential of AI, initiating various programs such as the IndiaAI Mission, IndiaAI Dataset Platform, and AIKosha. These initiatives aim to enhance the delivery of essential services and capitalize on AI’s growth potential.

Current Regulatory Landscape

Despite these initiatives, the national approach remains fragmented, with the government attempting to balance innovation and regulatory oversight. While there is a push for AI-driven economic growth, the regulatory framework is still evolving, struggling to keep pace with the rapid advancements in technology.

Unlike jurisdictions such as the European Union, which have established prescriptive AI-specific laws, India’s regulatory approach has been somewhat reactive. The country has yet to establish a comprehensive legal framework tailored specifically to AI governance, relying instead on existing laws that are often interpreted through various institutional lenses.

Challenges in AI Regulation

Several critical legal issues remain unresolved in the context of AI regulation:

  • AI Bias and Algorithmic Accountability: AI systems have been criticized for exhibiting bias, particularly in sectors like hiring, lending, law enforcement, and healthcare. The current legal framework lacks provisions to ensure fairness, transparency, and accountability in AI systems.
  • Data Privacy and AI Training: The Digital Personal Data Protection Act, 2023 (DPDP Act) has indirect implications for AI development, particularly concerning personal data usage. The lack of clarity regarding public data and data holders’ rights poses challenges for AI training methodologies.
  • Copyright Issues: The use of copyrighted materials for AI training raises concerns regarding derivative works and potential infringement actions. The current legal stance on the copyrightability of AI-generated content remains ambiguous, complicating matters for businesses and creators.
  • Intermediary Liability: The classification of AI models as intermediaries requires careful legal scrutiny. Current regulations may not adequately cover the realities of AI systems, necessitating updates to reflect their unique characteristics.
  • Responsibility Allocation: Determining liability in the deployment of AI systems poses significant challenges, with ambiguity surrounding the responsibilities of developers, deployers, and users.

Conclusion

India’s approach to AI regulation has made significant strides in policy development, yet it continues to grapple with uncertainty regarding definitive legislation. Although there have been discussions around regulatory challenges, concrete measures may take time to materialize. The proposed Digital India Act (DIA), aimed at regulating high-risk AI systems, reflects the government’s acknowledgment of these challenges but remains in the drafting phase.

Moving forward, a balanced and thoughtful approach to AI-specific legislation is crucial. Such measures will foster business certainty, support user rights, and enable responsible innovation in a rapidly evolving technological landscape.

More Insights

CII Advocates for Strong AI Accountability in Financial Services

The Chartered Insurance Institute (CII) has urged for clear accountability frameworks and a skills strategy for the use of artificial intelligence (AI) in financial services. They emphasize the...

Regulating AI in APAC MedTech: Current Trends and Future Directions

The regulatory landscape for AI-enabled MedTech in the Asia Pacific region is still developing, with existing frameworks primarily governing other technologies. While countries like China, Japan, and...

New York’s AI Legislation: Key Changes Employers Must Know

In early 2025, New York proposed the NY AI Act and the AI Consumer Protection Act to regulate the use of artificial intelligence, particularly addressing algorithmic discrimination in employment...

Managing AI Risks: Effective Frameworks for Safe Implementation

This article discusses the importance of AI risk management frameworks to mitigate potential risks associated with artificial intelligence systems. It highlights various types of risks, including...

Essential Insights on the EU Artificial Intelligence Act for Tech Companies

The European Union has introduced the Artificial Intelligence Act (AI Act), which aims to manage the risks and opportunities associated with AI technologies across Europe. This landmark regulation...

South Korea’s Landmark AI Basic Act: A New Era of Regulation

South Korea has established itself as a leader in AI regulation in Asia with the introduction of the AI Basic Act, which creates a comprehensive legal framework for artificial intelligence. This...

EU AI Act and DORA: Mastering Compliance in Financial Services

The EU AI Act and DORA are reshaping how financial entities manage AI risk by introducing new layers of compliance that demand transparency, accountability, and quantifiable risk assessments...

AI Governance: Bridging the Transatlantic Divide

Artificial intelligence (AI) is rapidly reshaping economies, societies, and global governance, presenting both significant opportunities and risks. This chapter examines the divergent approaches of...

EU’s Ambitious Plan to Boost AI Development

The EU Commission is launching a new strategy to reduce barriers for the deployment of artificial intelligence (AI) across Europe, aiming to enhance the region's competitiveness on a global scale. The...