AI regulation: As the development of artificial intelligence continues to pick up pace, the Union government is working to regulate its rapid expansion. A comprehensive set of standards for artificial intelligence-related applications is expected soon. The Bureau of Indian Standards has been tasked with developing these standards, collaborating with various ministries, including consumer affairs, IT, and education, as well as with industry, to formulate comprehensive regulations.
The urgency for uniform standards in the artificial intelligence sector arises with the explosive growth in AI applications across fields such as healthcare, education, and customer service. However, this expansion has also sparked concerns about the ethics and trustworthiness of these applications, highlighting the need for a reliable and future-proof regulatory framework to ensure responsible use.
READ | Fed pivot: Implications of a US rate cut for emerging markets
AI regulation and BIS standards
The Union government has been contemplating artificial intelligence regulation for some time. The BIS standards represent the latest effort in a structured approach to regulate artificial intelligence, encompassing all stages of AI applications—from development to deployment and their broader impact. In the absence of clear regulations, developers have exploited loopholes, and the ultimate goal of these umbrella norms is to protect users and stakeholders from potential risks. The introduction of BIS standards will bring much-needed uniformity to the sector, establishing consistency throughout the industry.
With advancements in AI, controversies have also emerged. For instance, companies like ChatGPT have faced lawsuits for allegedly using online articles without permission to train their chatbots. AI chipmaker Nvidia was sued by three authors for using copyrighted works to train its NeMo AI platform. Artificial intelligence platforms have also been accused of racial biases. However, it remains unclear how these new standards will effectively regulate an ever-evolving landscape. India’s main challenge lies in crafting a clear and adaptable framework that can keep pace with the rapid evolution of generative artificial intelligence.
AI regulation vs innovation
Previously, the government had decreed that companies would need official permission to deploy any artificial intelligence models on the Indian internet. This decision followed the controversial response of the Gemini AI model about Prime Minister Narendra Modi. The fallout included PM Modi’s speeches on the dangers posed by AI-generated deepfakes and misinformation. Modi used a keynote speech at the G-20 summit to call for common standards for artificial intelligence-driven content.
Following criticism that the advisory was ambiguous and vague, Rajeev Chandrasekhar, the then minister of state for electronics and information technology, clarified that the government’s AI advisory would only apply to significant platforms and large platforms. Startups would not be required to seek permission from the ministry of electronics and information technology. Moreover, the advisory specifically targeted untested artificial intelligence platforms deployed on the Indian internet. Nevertheless, the damage was done, cementing the impression that the government might not be reliable when it comes to fostering innovation.
The government is engaged in a longer-term struggle with big tech companies, particularly those based in the US. Indian officials argue that companies like Google embed American values and regulatory principles in their products while attempting to evade India’s more restrictive regulations. By forcing foreign tech platforms to adhere to local rules, the government risks deterring such companies. Even Indian companies were reminded of the state’s history of using heavy-handed regulatory tools and past missteps in curbing innovation.
For India, which aspires to be a global leader in artificial intelligence, creating a robust legal framework is a crucial first step toward achieving its ambitions. The country boasts a thriving ecosystem of information technology companies, from startups to continent-spanning giants. However, stifling innovation in the name of protection is a path the government must avoid. Policymakers and activists must ensure that the development of BIS standards does not hinder innovation.
Currently, India is shaping its own approach to regulating generative artificial intelligence, which aligns more closely with the United States’ hands-off approach than with the European Union’s stringent Artificial Intelligence Act. While the EU’s act imposes significant liabilities on the artificial intelligence industry, potentially hindering growth in Europe, India appears to be pursuing a more balanced strategy. It remains to be seen whether the country can successfully strike a middle ground between these two major economic powers.