INTRODUCTION
In this day and era of Artificial Intelligence (AI), India is tackling with the regulatory concerns for developing a robust system that encourages safe use of AI activities through various industries such as research and education, industrial applications, customer support and healthcare, automation and other areas.
From the conventional point there are concerns regarding the legal and ethical challenges that AI technologies introduce.
At present India does not have any dedicated regulatory framework for AI. However, the India government has recognised the need for regulatory measures and guidelines to ensure that AI development aligns with national interests, particularly in areas such as privacy, data protection, and security.
As per the statistics, the global AI market is expected to reach a value of USD 305.9 billion in 2024, expanding at a compounded annual growth rate (CAGR) of 15.83% until 2030. In India, the AI market is projected to achieve a CAGR of 17.94% through to 2030 and surpass USD 5.47 billion in 2024.
The Indian start-ups are betting heavy on the development of AI, from leveraging the technology for detection of diseases to building human-like conversational platforms, the world’s third largest startup ecosystem is witnessing it all.
Consequently, India has spawned the rise of more than 200 GenAI startups that have raised more than USD 1.2 billion since 2020.
LEGALLY SPEAKING
Unlike the European Union that recently published their first-ever comprehensive law on AI called as the AI Act (Regulation (EU) 2024/1689 laying down harmonised rules on artificial intelligence ). India has also issued a series of advisories related to AI, but presently are no specific laws regulating AI in India. However Existing legislation like the Information Technology Act, 2000, the Digital Personal Data Protection Act, 2023, and the Information Technology Rules, 2021 play a significant role in overseeing AI activities.
The Information Technology Act makes provisions for compensation in the event of breach of data privacy due to negligent handling of sensitive personal data. AI systems are required to comply with strict personal data protection. Similarly, AI-driven deepfakes and other AI-generated fraudulent content are penalized for cheating by impersonation.
The Digital Personal Data Protection Act, 2023, also makes provision for obtaining user consent before processing personal data. The Act makes it compulsory for Companies deploying AI to report data breaches to regulatory authorities within a specific timeframe, further ensuring accountability.
Lastly, IT Rules that regulate intermediaries make it obligatory for the AI system to ensure that their platforms do not host, display, or transmit unlawful content, making it relevant for AI systems generating content, such as deepfakes or automated media.
The government of India through its apex public policy think tank called as the NITI Aayog has released the National Strategy for Artificial Intelligence #AIForAll, strategy, which featured AI research and development guidelines focused on healthcare, agriculture, education, “smart” cities and infrastructure, and smart mobility and transformation.
The NITI Aayog also released Principles for Responsible AI in 2021 in two phases. The document establishes guidelines for AI governance covering principal such as decision-making transparency, accountability, and inclusivity, with focus on AI’s impact on job creation and the automation of industries.
The government of India through its Ministry of Electronics and Information Technology (MeitY) has also created committees on AI that have submitted reports on the development, safety, and ethical issues related to AI.
THE FUTURE
Additionally, India is a member of the Global Partnership on Artificial Intelligence (GPAI) which aims to promote responsible AI development globally. Recently, the GPAI summit held focused on responsible AI, data governance, and the future of work. These discussions reinforced India’s commitment to implementing ethical AI practices that align with global standards, such as the OECD AI Principles.
The Indian government is actively investing in the artificial intelligence sector. Recently the government has sanctioned an investment worth INR 103 billion (approximately USD 1.25 billion) for AI projects over a period of five years.
The purpose of the investment is to allocate it for diverse objectives, such as the development of computing infrastructure, large language models, and supporting AI startups.
The government intends to establish a National Data Management Office that will coordinate with various government departments and ministries to improve the quality of data and make them available for AI development and deployment. These investments aim to foster the creation of AI applications for the public sector.
CONCLUSION
As AI continues to be prevalent among various countries, India too is in the process to formulate a comprehensive law that aims to strike a balance between promoting innovation and ensuring responsible, ethical AI practices.