Government Shifts AI Regulation Focus: Labels Over Permits in Policy Reversal

In response to growing scrutiny, the Modi government has made a significant policy reversal regarding the regulation of artificial intelligence (AI) in India. Previously, the government had issued an advisory mandating intermediaries and platforms to seek governmental approval before deploying “under-tested” or “unreliable” AI models and tools in the country. However, in a recent development, the government has rescinded this requirement, opting instead for a revised approach.

In the latest advisory released yesterday, the government has introduced a new directive that shifts the focus towards transparency and user awareness. Instead of requiring prior government permission, firms are now instructed to label under-tested and unreliable AI models. This labeling aims to inform users about the potential shortcomings or uncertainties associated with such models. The decision to pivot from a permit-based system to a labeling system reflects the government’s recognition of the need for greater transparency and accountability in AI deployment.

This change in policy comes amidst concerns regarding the adequacy of due diligence measures undertaken by intermediaries and platforms, as mandated by the existing IT Rules. The government’s advisory acknowledges the importance of ensuring responsible AI usage while also addressing potential risks associated with misinformation and deepfake technology.

Moreover, the new advisory emphasizes the need for intermediaries to take proactive steps in safeguarding against the spread of unlawful content. Platforms are instructed to deploy AI models capable of identifying and preventing the dissemination of illegal or harmful content. Additionally, special attention is given to content susceptible to deepfake manipulation, with platforms required to label such AI-generated content accordingly.

Furthermore, the government underscores the importance of neutrality and impartiality in AI algorithms, particularly in the context of electoral processes. Platforms are urged to deploy AI models that refrain from bias and interference in electoral activities.

In light of these developments, the government’s advisory serves as a reminder of the evolving regulatory landscape surrounding AI technology in India. By prioritizing transparency, user awareness, and responsible AI deployment, the government aims to strike a balance between innovation and regulation in the rapidly advancing field of artificial intelligence.