New Delhi: After the Union Minister for Electronics and Information Technology, Ashwini Vaishnaw announced the government’s openness to introducing a new law for artificial intelligence (AI), Bhaswati Guha Majumder of CXO News and APAC News Network gathered perspectives from leading experts.
Vaishnaw highlighted the importance of balancing challenges like fake news and misinformation with the preservation of freedom of speech. His announcement has sparked widespread debate on the potential implications of such a legal framework for India’s growing AI ecosystem.
The experts’ discussions were focused on the need for innovation-friendly regulations that ensure ethical and accountable AI governance while addressing India’s unique socio-economic challenges.
Legal Framework Must Align with Indian Realities
Abhivardhan, Founder of Indic Pacific Legal Research and Chairperson of the Indian Society of Artificial Intelligence and Law, believes that AI regulation in India must address its unique socio-economic context.
“AI legislations should address questions of last-mile implementing value, whether they can be applicable to the larger organised and unorganised streams of the Indian tech ecosystem,” he said. Highlighting the underdeveloped state of India’s legal framework for AI and digital technologies outside of cyber and information security, he noted that foundational principles like explainability, accountability, and sectoral data protection must guide any new law.
Abhivardhan, who has privately proposed India’s first AI regulation through aiact.in, emphasized specific steps to balance innovation and governance:
- Strategic Innovation: “It’s better to acknowledge the role of knowledge assets and knowledge management from an interoperability angle in AI and IP law, which could be specifically applied for AI infrastructure and solutions in strategic sectors like telecom and energy.”
- AI Safety: He suggested creating an AI Safety Institute to promote research tailored to Indian realities. “The government should promote standardising incident response protocols out of risks arising from AI use by private and governmental institutions,” he added.
Abhivardhan also stressed the need for regulations to prioritize technical inputs and align incident response practices with India’s technology ecosystem.
Framework for Innovation and Trust
Ankit Sahni, Partner at Ajay Sahni & Associates, sees the proposed law as an opportunity to foster responsible AI development while building trust among stakeholders.
“A well-crafted AI law can create a structured framework for innovation, encouraging responsible AI development while ensuring trust among stakeholders,” Sahni remarked.
He outlined several provisions that such a law should include:
- Incentives for Innovation: Research and development funding, sandboxes for experimentation, and targeted support for AI startups can drive innovation.
- Ethical Usage: Guidelines to address algorithmic bias, transparency, and societal impact. Provisions must ensure that AI technologies uphold societal values and avoid harm.
- Privacy Protections: Robust frameworks to govern data collection, storage, and usage.
- Global Alignment: Harmonization with international AI regulations can make Indian AI solutions globally competitive.
- Grievance Mechanisms: Accessible pathways for users to report misuse or concerns about AI technologies.
While optimistic, Sahni warned against over-regulation, stating that “over-regulation could stifle experimentation and adoption, especially for startups and smaller innovators”.
Balancing Innovation with Regulation
Rishi Agrawal, CEO and Co-Founder of TeamLease Regtech, observed that India’s current approach to AI regulation remains in its infancy. Existing laws like the Information Technology Act, 2000, and the Digital Personal Data Protection Act, 2023, indirectly address AI, but a dedicated AI framework could provide much-needed clarity.
“A new act like the Digital India Act, which will likely replace the IT Act, 2000 in the future, will talk about AI at length compared to its predecessors. The proposed act is expected to address key issues such as online safety, trust, accountability, open internet and the regulation of other emerging technologies such as blockchain,” Agrawal noted.
He added: “The idea of a completely new law regulating AI does not sit very well with the industry, given the creation of additional mandates. However, a well-crafted law can mandate ethical guidelines for AI, ensuring that systems are built with fairness, accountability, and transparency, giving more credibility to developing and deploying AI systems, and establishing public trust.”
Agrawal suggested a regulatory sandbox approach to balance innovation and risk management. “It would help minimize risks, ensure compliance with ethical and legal standards, and maximize creativity,” he stated.
He also advocated for sector-specific provisions, particularly for sensitive areas like healthcare. “The healthcare sector could experience stricter regulations due to the sensitivity of patient care outcomes,” Agrawal emphasized.
Key recommendations from Agrawal include:
- Risk-Based Regulation: A framework similar to the EU’s AI Act, categorizing risks as unacceptable, high, limited, or minimal, would be effective.
- Responsible AI Systems: Provisions addressing algorithmic bias and discriminatory outcomes.
- Data Security: Public datasets should be made available by the government to encourage innovation without compromising personal data.
- Adaptive Laws: The framework should evolve with technological advancements to stay relevant.
- Sector-Specific Rules: Tailored guidelines for industries with varying risk levels.
Challenges and Opportunities Ahead
Vaishnaw’s proposal to debate a new AI legal framework marks a significant step in India’s digital policy evolution. Experts agree that such a framework must strike a delicate balance between fostering innovation and ensuring ethical, accountable, and safe AI use.
While there is optimism about the government’s willingness to engage in a consensus-driven process, the diverse perspectives underscore the complexity of AI governance in India. By addressing these challenges thoughtfully, India can position itself as a global leader in AI, leveraging its unique strengths while mitigating risks.
