India and AI Governance

Global Context

• Over the past year, AI regulation has become a global policy priority.
• Many nations have shifted focus from social inclusion and ethics to innovation and economic advantage.
• Legally binding AI regulations exist in:
  • China, European Union, Canada, South Korea, Peru, and the U.S. (Note: U.S. President Trump has revoked President Biden’s AI Executive Order).
• Countries with draft AI legislation: U.K., Japan, Brazil, Costa Rica, Colombia, Pakistan.
• 85+ nations, including the African Union, have released national AI strategy documents outlining developmental and ethical goals.

India’s Current Approach to AI Policy

• India does not yet have a formal law or endorsed national AI strategy.
• The 2018 NITI Aayog report on AI remains unofficial and unfunded.
• The IndiaAI Mission aims to create a robust AI ecosystem through seven thematic pillars, including:
  • Foundational model development
  • Skilling
  • Innovation hubs
  • Data platforms
• An expert advisory group is drafting governance recommendations, but these remain non-binding.

Pros and Cons of India’s Flexible Approach

• Advantages:
  • Allows adaptability to evolving technologies and global trends.
  • Offers policy flexibility amid geopolitical and economic shifts.
• Disadvantages:
  • Absence of a clear roadmap undermines strategic direction.
  • No defined milestones, budget, accountability mechanisms, or enforcement structure.
  • Policies may become reactive or dependent on individual leadership agendas.

Urgent Need for Guardrails

• India’s AI adoption is rising swiftly, yet regulatory and ethical oversight remains weak.
• Most AI deployments in sectors like healthcare, finance, education, public administration lack:
  • Algorithmic transparency
  • Efficacy metrics
  • Evaluation protocols
• Voluntary compliance dominates, posing risks of:
  • Discrimination
  • Privacy breaches
  • Cybersecurity threats
  • Labour displacement
  • Social unrest from AI-generated misinformation

Global Lessons: Data Regulation as a Blueprint

• India’s Digital Personal Data Protection (DPDP) Act, 2023 takes a centralised, cross-sectoral approach, like:
  • EU’s GDPR
  • China’s PIPL
• The U.S. model is sector-specific and decentralised.
• China leads with specific laws for generative AI and deep synthesis.
• India could pursue a hybrid governance model, building on the DPDP Act to develop sectoral AI regulations.

The Case for an Official AI Policy

• An official AI policy (not legislation) is an actionable short-term goal.
• Benefits include:
  • Piloting enforcement mechanisms
  • Outlining India’s AI vision, implementation strategy, and ethical use cases
  • Designating responsible authorities
  • Identifying priority sectors for AI-driven growth

Initiating Public Discourse on AI Ethics and Impact

• The Indian government must lead public discussions on AI’s societal implications, including:
  • Bias and fairness
  • Labour market disruptions
  • Data provenance
  • Algorithmic accountability
• Ignoring these aspects may exacerbate existing inequalities and undermine citizen trust.

Policy Recommendations

• Draft and release a National AI Policy that details:
  • India’s vision and goals
  • Implementation frameworks
  • Ethical guardrails
  • Sector-specific opportunities and risks
• Foster public and stakeholder discourse on AI development, ensuring democratic oversight and inclusivity.
• Leverage lessons from global regulatory models while aligning with India’s socio-political and economic context.