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The 21st century has seen multiple daily efficiency Artificial intelligence (AI) technologies, including Roomba (2002), a robotic vacuum; Microsoft Kinect (2010), a motion-sensing gaming device; and Siri (2011), Apple’s voice assistant that revolutionised human-computer interaction. And today, ChatGPT! Further, the recent launch of DeepSeek by China has garnered the world’s attention.

While these developments enhanced convenience, they also came along with concerns of misinformation, copyright violations and job market disruptions, leading to varied regulatory responses around the globe. 

In this evolving landscape, India finds itself in a testing spot, like many other countries across the globe. India’s current legislative framework on cybersecurity and data privacy is pertinent even though there are no particular laws that specifically address DeepSeek. The Information Technology Act, 2000 (IT Act) and the Digital Personal Data Protection Act, 2023 (DPDP Act) offer a robust framework for cybersecurity and data protection. These regulations would be essential in regulating the application of AI tools such as ChatGPT and DeepSeek, guaranteeing that they adhere to Indian legal norms.

Where Does Our Legal Framework Stand?

India currently prioritizes fostering innovation and technological development, believing that excessive regulation could disincentivize foreign investments. While this approach attracts foreign capital, it may also leave significant regulatory gaps to be addressed in the future. AI, in all its forms, must be regulated – whether it functions as a lawyer, accountant, or facilitator. While AI is currently subject to the country’s existing data privacy, cybersecurity, and copyright laws, it is equally important to understand how these regulations can be effectively implemented in practice and how the responsibility will fall on the creator. 

Pertinently, Section 4 under the DPDP Act mandates that personal data can be processed only under the provisions of the Act and only for a lawful purpose, thus implying that AI systems must exercise caution in handling data. Further, under section 11, the Data Principal shall have the right to access information about her/his personal data from the Data Fiduciary to whom she/he has previously given consent. Further, section12 ensures that the right to correction and erasure of personal data of any Data Principal stand protected.

Additionally, Section 43A under the IT Act, imposes penalties on companies for negligent data handling, which can also be extended to AI systems.

Apart from this, the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 impose due diligence obligations on platforms. In this regard, the Ministry of Electronics and Information Technology (MeitY) has issued advisories requiring AI models to be clearly labelled if they are in a trial phase or deemed unreliable and to secure government approval before deploying certain models. Additionally, AI-generated content must comply with all applicable laws, not just the IT Act.

EU’s AI Act Serving as a Global Lighthouse      

The EU has taken the front stage in AI regulation. The AI Act launched by the EU in 2024 is the world’s first comprehensive AI law. This centralised law adopts a risk-based approach, the higher the harm posed by an AI application, the stricter the compliance requirements. The Act applies across all sectors and industries mandating transparency, technical documentation, human oversight, and data quality. 

Pertinently, the EU AI Act applies extra-territorially in the manner that even if an AI system is placed by a foreign entity in the EU market, the AI Act will apply. Just as the EU’s General Data Protection Regulation (GDPR) has influenced national data protection regimes worldwide, including the DPDP Act, the EU AI Act may serve as a global template for AI regulation.

India Taking Small Steps Forward

India has taken some active measures in this regard. The policy think tank, NITI Aayog has been tasked with the regulated use of AI. In 2018, the body launched the National Strategy for Artificial Intelligence #AIForAll initiative featuring AI-driven developments in the key areas of smart cities, healthcare, agriculture, education, etc. 

It further launched a two-part framework on responsible use of AI – first, Principles for Responsible AI (2021) outlining considerations such as inclusivity, accountability, and societal impact; and second, Operationalizing Principles for Responsible AI (2021) providing feasible steps for the public and private sectors to implement responsible AI practices in partnership with research institutes.

AI Governance: Role of Sectoral Regulators

Sectoral regulators also play a crucial role in AI governance by introducing dedicated compliance requirements. Further, ministry advisories can help tackle misinformation, deepfakes, and other unethical practices. It is reported that the government is also considering introducing specific provisions for AI regulation in the proposed Digital India Act. In particular, AI deployment in critical sectors such as healthcare, aviation, and banking is expected to be regulated through quality-testing frameworks, threat and vulnerability assessments, and content moderation mechanisms.

India’s Playing Its Part on International Fora

India has been actively involved in global AI governance. Recently it signed “Inclusive and Sustainable Artificial Intelligence (AI) for People and the Planet” at the Paris AI Action Summit along with 57 other nations. As a member of the Global Partnership on Artificial Intelligence (GPAI) and the Organization for Economic Co-operation and Development (OECD), India collaborates with international stakeholders to promote ethical AI practices. The New Delhi AI Meeting and the Global IndiaAI Summit (July 2024) further highlight India’s commitment to shaping global AI policies. These summits focus on AI research, computational capacity, startup funding, and AI safety, aligning with India’s broader AI development strategy.

India’s regulatory environment needs to find a strategic balance between encouraging innovation and defending the interests of society as AI develops further. Through the integration of worldwide best practices and the implementation of methodical domestic regulations, India can create a strong framework for AI governance that guarantees ethical and responsible AI development.

Future of AI in India

With sustained government support, an expanding startup ecosystem, and a rise in research and development initiatives, AI in India appears to have a bright future. The nation is in a strong position to lead the world in artificial intelligence, advancing both technology and society. The World Economic Forum has released an article titled “Why AI for India 2030 is a blueprint for inclusive growth,” which offers insightful information about the development of AI in India going forward.