Indian tech aficionados are utilizing AI to its fullest extent and in an unregulated manner, thus having a suitable framework is essential.
In the burgeoning technology landscape, Artificial Intelligence (AI) and Generative AI (Gen AI) have emerged as transformative forces, reshaping the way businesses operate and individuals interact with information.
As per Statista data of 2023, the AI market in India has surged to an impressive $4.1 billion, reflecting the growing prominence of the AI technologies.
This shift is not only a testament to technological advancements but also highlights the increasing reliance on AI-driven solutions for enhancing productivity and serving as information aggregators.
According to data from Nasscom, India currently boasts approximately 416,000 skilled professionals in the field of AI, at such scenario a regulated infrastructure for AI is imperative.
In a bid to strengthen the landscape with AI, the Indian government is gearing up to implement significant amendments to the Information Technology (IT) Act of 2021.
This initiative aims to regulate the burgeoning domain of Artificial Intelligence (AI) and Generative AI (Gen AI), setting a new precedent for technological integrity and ethical AI practices.
Union Minister Rajeev Chandrasekhar earlier in December 2023 described the government’s round-the-clock efforts to provide the infrastructure required for cutting-edge technologies like artificial intelligence (AI), which will help India’s tech sector reach a trillion dollars by 2026.
The updated regulations, which will not be prejudiced in any way, will control the platforms that use language models to teach their machines.
According to a media report, the Ministry of Electronics and Information Technology will shortly notice the adjustment, which will prohibit the use of AI algorithms or language models that are biased by nature or that are trained on datasets that provide biased results.
Why amendment to the IT Act 2021 is required?
The entire world is aiming to understand the potential of AI technology, and some have drafted framework around the technology for safer and better use of it.
Citing example- In 2023, US senators were addressing AI challenges through hearings and discussions, considering potential impacts on employees, workforce productivity, and hiring processes.
Initiatives include proposing AI regulations, licensing AI systems, establishing a federal AI agency, and implementing third-party testing and auditing regimes were raised.
Experts were consulted on AI regulation, with considerations ranging from licensing regimes to legal limits on specific uses.
Notably, OpenAI CEO Sam Altman has advocated for federal oversight, leading to the introduction of bills by Senators Michael Bennet, Josh Hawley, and Richard Blumenthal.
In October, the US President Joe Biden’s Administration released the AI Bill of Rights Blueprint. Following suit, the AI Risk Management Framework was released in January by the National Institute of Standards and Technology.
“To advance President Biden’s vision, the White House Office of Science and Technology Policy has identified five principles that should guide the design, use, and deployment of automated systems to protect the American public in the age of artificial intelligence. The Blueprint for an AI Bill of Rights is a guide for a society that protects all people from these threats—and uses technologies in ways that reinforce our highest values,” reads the White House blog.
Not just US, nations like- China, Europe Union, Britain, Japan, Italy, Australia, France, Spain, Israel, United Nations, Canada, Ireland, Brazil, UAE have regulated the AI technology.
The United Nations and the European Union are actively involved in AI regulation discussions, the evolving landscape underscores the need for comprehensive regulatory frameworks.
Drawing parallels, India should heed this global momentum and institute robust AI regulations to address potential challenges and ensure ethical AI development within its borders.
As existing Indian IT Act does not include frameworks around AI therefore, amendment of India’s IT Act signifies a pivotal shift towards a more secure and equitable digital ecosystem, both nationally and internationally.
According to Amit Jaju, Senior Managing Director of Ankura Consulting Group (India), the amendments represent a critical move towards ensuring bias-free AI model training, addressing concerns related to deepfakes, synthetic content, and algorithmic accountability.
Echoing similar sentiments, Jaspreet Bindra, Managing Director & Founder of The Tech Whisperer, highlighted despite India’s robust IT Act is, AI and GenAI present challenges beyond it- in terms of bias, plagiarism and copyright, deepfakes, data privacy, and even environmental consequences.
“Adding some balanced regulation and guidelines around some or all of these should be welcomed by consumers and industry. There is talk of a pro-innovation regulation, which will benefit the industry. Most of all, it will encourage AI and GenAI adoption by large corporates and SMEs since the cloud of uncertainty around regulation and AI safety will be lifted,” Bindra says.
Bindra further mentioned that the AI sector has other challenges including expensive building Large Language Models, the need for India-specific models, making Generative AI accessible, enhancing original R&D efforts, and acquiring India-specific datasets is crucial for maximizing AI’s potential impact on India’s growth and development.
Rise of Cyber Security Concerns
On one side everyone is talking about the potential of AI to simplify the effort and time needed to increase the efficiency and quality of deliverables. On the other side, the misuse of technology has become a serious concern today.
Recently a viral AI deepfake video featuring actress Rashmika Mandanna, amassed over 2.4 million views, underscored the concerning implications of unchecked AI advancements.
Deepfake technology’s ability to seamlessly manipulate videos and voices poses a significant threat, exemplified by the unauthorized alteration of the actress’s footage.
This case highlights the pressing necessity for stringent legal and regulatory measures in India to combat the proliferation of deceptive and harmful AI-generated content online.
It is true AI possibilities are exceptional. In recent days, people across India using this technology in full potential in an unregulated way thus, security concerns are rising.
Munab Ali Beik, Head of Compliance Advisory Practices at Core Integra Consulting Services, drew attention to – “A recent survey of the agency clarified that 40% of the professionals started using AI and Gen AI chat bots. An increase in usage also leads to a high risk involved while using the same,” Beik says.
He cautioned about the identified risks associated with cybersecurity, data security, regulatory issues, and confidentiality, stressing the urgency of rules and regulations to safeguard users and confidential data.
“The lack of rules and regulations to keep users and confidential data safe will pose a high threat to India. With increased issues related to cyber security and national safety, the AI and Gen AI are required to be monitored and penalized for the misuse of any confidential information’s shared with chat bots. Many of the users are not aware of the shared information in the chat bot used for training purposes to increase the efficiency of the tool,” says Beik.
As per Sumit Singh, CEO and Co-Founder of DashLoc mentioned AI technology is transforming various industries in India, including customer service, healthcare, fintech, agriculture, and digital marketing.
“To ensure safety when using AI tools, regular software updates, robust encryption, rigorous testing, transparent data collection protocols, continuous monitoring, user training on security best practices, and collaboration with cybersecurity experts for audits and risk assessments are essential measures. These measures help protect sensitive data, prevent biases, and maintain user privacy,” Singh adds.
Government’s actions so far
It is inevitable that the number of people with AI skills will rise in tandem with the growing need for technology. Thus, talent is one of the more fundamental challenges concerning the growth of AI.
Thus, Union Minister Chandrasekhar earlier in December 2023 at the Conclave mentioned AI master’s and PhD degrees must be granted by universities. The infrastructure issues will be fixed right away.
Prior to the Budget 2023–2024, paragraph 60 of the Budget Announcement said the following: “For realizing the vision of “Make AI in India and Make AI work for India”, three centres of excellence (CoE) for Artificial Intelligence will be set up in top educational institutions. Leading industry players will partner in conducting interdisciplinary research, develop cutting-edge applications and scalable problem solutions in the areas of agriculture, health, and sustainable cities. This will galvanize an effective AI ecosystem and nurture quality human resources in the field.”
The government has authorized the creation of three Artificial Intelligence (AI) Centers of Excellence (CoE) with a total budget of INR 990.00 crores for a five-year period, spanning from FY 2023–2024 to FY 2027–2028.
Along with government, industry should become proactive to make the AI transformation and to Make AI work for India smooth. Jaju emphasizes “This is a clarion call for companies to proactively refine their AI frameworks, ensuring their algorithms are transparent, ethical, and accountable. Firms should invest in robust sandboxing and stress testing to comply with these standards, fortifying trust in AI and protecting the digital infrastructure against future adversities. Ultimately, this move fortifies India’s position as a responsible AI steward, promoting a global dialogue on ethical AI practices that could inspire worldwide regulatory harmony.”
The experts who have shared insights with us on regulating AI are progressing towards harmony, which emphasizes the necessity for regulations is a must to match the burgeoning adaptation of the technology. This will strike a balance between fostering innovation and ensuring ethical AI practices.
Proposed amendments to the IT Act seek to create frameworks guiding the responsible deployment of AI, aligning with international standards. This alignment between evolving regulations and technological advancements will position India as a responsible agent of AI.
