Navigating responsible AI regulation in India: A path to economic growth

The recent announcement of the Government of plans to add a layer of AI to the India Stack is reflects Governments’ recognition how AI can revolutionize various sectors, including healthcare, agriculture, transportation, and governance, and enable expedited economic growth and prosperity. Intelligence generated from arguably the largest pool of jurisdiction specific dynamic data could help iron out India’s inherent physical, social, and cultural imperfections, and achieve a transformative impact. India can benefit enormously from use of AI-based tools by predicting the height/weight of children to eradicate malnutrition, enabling early disease detection, optimizing crop yields, enabling efficient management of depleting agricultural resources to address food security challenges, enhancing public service delivery, etc. However, till the domestic AI ecosystem and infrastructure mature, India would need to depend on international partnerships. The decision not to regulate AI development in India is welcome and should help develop AI research, start-up ecosystem and skilled professionals.

AI is critical to India: Harnessing the power of AI is crucial for the country's technology sector to continue thriving and contribute to its overall economic development, as AI may one of the biggest drivers of economic growth and would also be critical for the competitiveness of any business or country. Over the few years, the Indian Government laid the foundational moves towards the development of the AI ecosystem that included the launch of the National Strategy on AI, setting up a center of excellence in AI, MEITY coming up with a portal to showcase India’s AI capabilities - IndiaAI, joining the Global Partnership for AI(GPAI), and now supporting the AI initiatives with a dedicated budget. However, most these initiatives will take time for AI products and solutions to develop and require considerable dedicated efforts, resources and time of all stakeholders. Besides, expediting the AI related R&D in India, the Indian policymakers need to be cognisant of the following and act to ensure Indian companies and users are not in the lurch.

The Access Dilemma

It is inevitable that even in open market scenario, only a few countries would possess the resources or expertise to build and develop advanced AI technologies independently. Just as with airplanes or nuclear technology, the development and deployment of AI require significant investments, research, and technical capabilities. However, there is a concentrated and synchronized effort underway, wherein the leaders in AI technology, US and China, are both pushing for international regulations to emerge that would control or limit access to AI technologies. This raises serious concerns about access to AI technologies and exacerbates the technology divide. The Indian government and the private sector should develop dedicated research programs to build indigenous AI capabilities focusing on applications specific to the country.

Reskilling the Workforce

A key aspect of AI adoption is ensuring the workforce is equipped with the necessary skills to utilize and benefit from AI technologies. Reskilling initiatives should be a top priority on the government's agenda. This will not only be important from aid economic growth, enabling a move up the value chain with more high-quality work but also help mitigate the work opportunities that may be lost to LLMs, especially basic entry-level coding and testing work

that is widely expected to get automated in the AI era increasingly. MEITY in collaboration with NASSCOM has launched the Future Skills platform which would help in skilling the workforce in AI skills. CBSE has introduced coding and AI as part of the curriculum at the school level.

Responsible AI Use and Regulation

The responsible use of AI technology should be at the forefront of global efforts as it is critical to address concerns such as bias, privacy, security, and accountability. Guidelines and frameworks must be established to promote fairness, transparency, and inclusivity in AI algorithms and applications. The communique from the White House following the meeting of the Biden Administration with leading AI CEO’s, talks of responsible AI regulation. However, there are question marks on the US Government’s intent and interpretation of responsible regulation, considering it gave its companies a free run for years and argued against regulation until AI solutions pioneered by US companies found global traction, and no alternative other than China seems likely soon. India too has proposed Responsible AI principles; however, considering the global nature, countries need to collaborate on platforms like International Standards Organization.

The How of Regulation - Ethics, Transparency, and Accountability

Regulation can be at multiple levels. Given that AI transcends multiple applications and can vary from a platform to an intermediary to an end consumer use, it becomes a complex case for regulating it. It might be best to adopt a sector-based approach, where the regulations are made specific to a particular sector where autonomous decision-making using AI will operate as in the case of Boeing 737 Max and autonomous cars, instead of a blanket regulation like the one proposed by European Union. Creating mechanisms for independent audits, establishing ethical review boards, and promoting transparency in AI systems' decision-making processes are crucial steps toward building public trust and ensuring fair and equitable outcomes.

India should leverage its GPAI, ISO, and other AI collaborations to learn from global best practices as it embarks on its AI governance journey. It will ensure a balance can be maintained, and we don’t see a future of AI haves and have-nots. Engaging in knowledge-sharing platforms, participating in international forums, and forging partnerships can provide valuable insights into effective AI regulation. Through international platforms like G20 or GPAI, India can leverage the experiences of countries such as Canada, Singapore, and the European Union, which have also been developing AI governance approaches.

In pursuing economic growth and technological advancement, India must embrace AI while responsibly regulating its usage. A comprehensive regulatory framework that addresses key concerns such as data privacy, algorithmic bias, and accountability is essential. Concurrently, reskilling initiatives should be implemented to equip the workforce with the necessary AI skills, by striking the right balance between innovation and regulation.

Avik Sarkar is associated with Data Science Institute, Indian School of Business and Rahul Gossain works at intersection of communications, policy, law, and ESG