Artificial Intelligence and Law in India
Artificial Intelligence is transforming India, but what are the legal rules governing AI? Here’s what you need to know about AI and law.
What Is Artificial Intelligence (AI)?
Simple Definition
Computer systems that can perform tasks typically requiring human intelligence:
- Learning from data
- Making decisions
- Recognizing patterns
- Understanding language
- Creating content
Examples You Use
- ChatGPT and AI chatbots
- Face unlock on phones
- Netflix and YouTube recommendations
- Google search predictions
- Spam email filters
- Virtual assistants (Siri, Alexa)
- AI photo editing
AI Is Everywhere – But Laws Are Catching Up
Current Legal Framework for AI in India
No Dedicated AI Law Yet
India does not have a specific “AI Act” like the European Union. Instead, existing laws apply.
Key Laws Applicable to AI
| Law | Scope |
|---|---|
| IT Act, 2000 | Governs digital activities, cybersecurity, and data protection provisions |
| Digital Personal Data Protection Act, 2023 | Governs personal data and applies to AI systems using personal data |
| Copyright Act, 1957 | Intellectual property rights and AI-generated content issues |
| Consumer Protection Act, 2019 | Product liability and deficiency in AI services |
| Indian Penal Code / Bharatiya Nyaya Sanhita | AI-enabled crimes such as deepfakes, fraud, and defamation |
| Motor Vehicles Act | Autonomous vehicles |
Sector-Specific Regulations
- RBI for fintech AI
- SEBI for stock market AI
- IRDAI for insurance AI
- Medical Council for healthcare AI
Key Legal Issues With AI
1. Data Privacy and AI
The Problem
AI systems need massive amounts of data to learn and function. This raises privacy concerns.
Your Personal Data Used By
- Social media algorithms
- Shopping recommendations
- Credit scoring systems
- Hiring algorithms
- Healthcare AI
- Surveillance systems
Legal Protection: Digital Personal Data Protection Act, 2023
Key Provisions
- Consent required for data collection
- Must know how data will be used
- Right to access your data
- Right to correct wrong data
- Right to erase data
- Purpose limitation (data used only for stated purpose)
Applies to AI Systems
- Must get consent before training on personal data
- Transparent about data use
- Secure storage
- Cannot discriminate
Your Rights
- Know what data is collected
- Withdraw consent
- Get data deleted
- Complain to Data Protection Board
- Compensation if data is misused
What You Should Do
- Read privacy policies
- Limit permissions to apps
- Use privacy settings
- Be careful what you share online
- Check if AI tools store your data
2. AI-Generated Content and Copyright
The Problem
If AI creates content such as text, images, music, or code, who owns it?
Current Legal Status in India
Copyright Act Requires
- Human authorship
- Original creative expression
AI-Generated Content
- No human author
- Created by algorithm
- Trained on others’ copyrighted works
Legal Gray Area
Questions Arising
Q1: Can AI-generated content be copyrighted?
Indian law is unclear. Copyright requires human authorship. Likely outcome: no copyright protection (public domain). Some argue the person who prompted AI should own it. Others say training data owners have rights.
Q2: Is it legal to train AI on copyrighted works?
Ongoing debate: fair use for research and learning versus copyright infringement. Courts will decide.
Q3: Who is liable if AI copies someone’s work?
AI company, user who prompted it, or original copyright holder. No clear answers yet.
Practical Implications
For Content Creators
- Watermark your work
- Protect against AI scraping
- Claim ownership explicitly
- Monitor for AI copies
For AI Users
- Verify if output is original
- Do not claim AI output as your creation
- Credit the AI tool used
- Be cautious with commercial use
International Developments
- US courts: Some AI art denied copyright
- EU: Discussing AI-specific rules
- India: Cases likely coming soon
3. AI Bias and Discrimination
The Problem
AI systems can be biased, leading to discrimination.
How Bias Happens
- Training data reflects societal biases
- Developers’ unconscious biases
- Inadequate testing
- Lack of diverse datasets
Real Examples
Hiring AI
- Rejecting women candidates
- Bias against certain names or regions
- Preferring specific educational backgrounds
Credit Scoring
- Denying loans to certain communities
- Using proxies for caste or religion
- Unfair creditworthiness assessment
Law Enforcement
- Facial recognition failing for dark skin
- Predictive policing targeting minorities
- Biased risk assessment
Healthcare AI
- Misdiagnosis for underrepresented groups
- Treatment recommendations biased
Legal Protections in India
- Article 14: Right to Equality
- Article 15: Prohibition of discrimination
- Article 21: Right to life and dignity
These constitutional protections apply to AI too.
If AI Discriminates Against You
- Consumer Forum
- Service deficiency
- Unfair trade practice
- Seek compensation
- Equality Commissions
- National Human Rights Commission
- SC/ST Commission
- Women’s Commission
- Disability Commission
- Court
- Writ petition
- Challenge discriminatory AI
- Demand explanation of algorithm
What Regulators Should Do
- Mandate fairness testing
- Require diverse datasets
- Regular audits
- Explainable AI
- Accountability mechanisms
4. AI Liability – Who Is Responsible?
The Problem
When AI causes harm, who is liable?
Scenarios
- Self-driving car accident
- Medical AI misdiagnosis
- Financial AI giving wrong advice
Legal Framework
- Product Liability (Consumer Protection Act) – Manufacturer liable for defective AI products
- Negligence (Tort Law) – Duty of care violated causing harm
- Contract Law – Service provider liable for breach of terms
- Criminal Liability – Creator or user can be prosecuted if AI is used for crime
Current Approach
- Developers: Liable if defect in design
- Deployers: Liable if improper use
- Users: Liable if intentional misuse
Challenges
- Autonomous AI decisions
- Black box algorithms
- Difficulty proving causation
- Multiple parties involved
Proposed Solutions
- Strict liability for high-risk AI
- Mandatory insurance
- AI audit trails
- Explainability requirements
5. Deepfakes and AI-Generated Misinformation
The Problem
AI can create realistic fake videos, images, and audio known as deepfakes.
Dangers
- Fake news spread
- Reputation damage
- Political manipulation
- Financial fraud
- Revenge porn
- Identity theft
Legal Position in India
Criminal Laws Apply
IT Act
- Section 66D: Cheating by impersonation
- Section 66E: Privacy violation
- Section 67: Obscene content
IPC / BNS
- Defamation
- Cheating
- Criminal intimidation
- Forgery
Specific Issues
Deepfake Pornography
- Violates dignity
- Sexual harassment
- IT Act 67, 67A (obscene content)
- Can file FIR
Political Deepfakes
- Election manipulation
- False statements
- Model Code of Conduct violation
- Election Commission can act
Financial Fraud
- Fake CEO videos
- Voice cloning for scams
- Cheating charges apply
What You Can Do
If You’re Victim
- Screenshot / Record: Evidence of deepfake
- Report Platform: YouTube, Facebook, Twitter
- File Cyber Complaint: cybercrime.gov.in
- Legal Notice: To creator / distributor
- FIR: For criminal charges
- Civil Suit: For defamation / damages
To Protect Yourself
- Limit personal media online
- Privacy settings on social media
- Watermark important videos
- Monitor for misuse
- Educate family / friends
Government Actions
2023–24 Developments
- MeitY advisory on deepfakes
- Platforms must remove within 24–36 hours
- Penalties for non-compliance
- Considering specific deepfake law
6. Surveillance and AI
The Problem
AI enables mass surveillance – facial recognition, behavior tracking, data analysis.
Concerns
- Privacy invasion
- Chilling effect on freedom
- Misuse by authorities
- Function creep (expanding use beyond original purpose)
In India
Facial Recognition Systems
- Police use for criminal identification
- Airport security
- Aadhaar authentication
- Private companies (offices, housing societies)
Legal Issues
- No specific law regulating facial recognition
Constitutional Concerns
- Right to Privacy (Puttaswamy judgment)
Need For
- Legal backing
- Legitimate purpose
- Proportionality
- Safeguards
Current Status
- Government using FRS
- No data protection
- Accuracy issues
- Disproportionate impact on minorities
Public Interest Litigations Filed
- Challenging use without law
- Demanding regulation
- Seeking transparency
What Citizens Can Do
- Object to unauthorized facial recognition
- Demand legal basis
- File PIL if rights violated
- Support privacy legislation
7. AI in Employment
The Problem
AI used in hiring, performance evaluation, and termination.
How AI Is Used
- Resume screening
- Video interview analysis
- Personality assessment
- Performance monitoring
- Promotion decisions
Legal Issues
- Discrimination: If AI has bias (gender, caste, religion)
- Violates labor laws
- Equal opportunity principles
- Privacy: Employee data collection
- Continuous monitoring
- Behavioral analysis
Rights of Employees
- Know if AI is used
- Understand how decisions are made
- Challenge unfair AI decisions
- Data protection rights
What Employees Can Do
- Ask for explanation of AI decision
- Request human review
- File complaint if discriminated
- Demand transparency
8. AI in Healthcare
Opportunities
- Diagnosis assistance
- Drug discovery
- Personalized treatment
- Patient monitoring
Legal Issues
- Medical negligence
- If AI misdiagnoses
- Who is liable – doctor or AI?
- Data privacy
- Sensitive health data
- Consent requirements
- Secure storage
Regulation
- Medical devices need approval
- AI diagnostic tools = medical devices
- Need licensing
Doctor’s Responsibility
- Cannot blindly rely on AI
- Must apply professional judgment
- Liable for treatment decisions
9. Autonomous Vehicles
The Problem
Self-driving cars raise unique legal questions.
Legal Issues
- Accident liability
- Who is responsible?
- Car owner, manufacturer, AI developer?
- Insurance challenges
- Existing motor insurance adequacy
- Traffic laws designed for human drivers
- Need amendments
- Criminal liability
- Can AI be prosecuted?
- Intent requirement in criminal law
Current Status in India
- Testing autonomous vehicles
- Motor Vehicles Act amendments discussed
- No clear framework yet
10. AI Regulation – What’s Coming?
Government Initiatives
NITI Aayog
- National AI Strategy
- Responsible AI guidelines
- Sectoral approach
MeitY (Ministry of Electronics & IT)
- AI standards
- Digital India initiatives
- Platform regulation
Proposed Regulations
| Area | Key Points |
|---|---|
| High-Risk AI Systems | Banking, healthcare, law enforcement, mandatory audits, human oversight |
| Transparency | Disclosure of AI use, explanation, human decision-maker |
| Data Governance | Quality data, bias testing, regular updates |
| Accountability | Clear liability rules, compensation, penalties |
| Ethics and Fairness | Ethical AI principles, non-discrimination |
International Influence
- EU AI Act (world’s first comprehensive AI law)
- India likely to adopt similar principles
- Balancing innovation and regulation
Your Rights in the AI Age
- ✅ Right to Know
- ✅ Right to Explanation
- ✅ Right to Human Review
- ✅ Right to Privacy
- ✅ Right to Non-Discrimination
- ✅ Right to Consent
- ✅ Right to Correction
- ✅ Right to Deletion
- ✅ Right to Compensation
- ✅ Right to Complain
Practical Tips
For Individuals
- Read AI tool terms and conditions
- Limit personal data shared
- Use privacy settings
- Verify AI-generated information
- Report deepfakes promptly
- Question AI decisions affecting you
- Stay informed about AI regulations
For Businesses Using AI
- Conduct bias testing
- Ensure data privacy compliance
- Be transparent about AI use
- Human oversight mechanisms
- Regular audits
- Clear liability policies
- Employee training
- Ethical AI principles
