India reverses AI stance, requires government approval for model launches

India reverses AI stance, requires government approval for model launches

India has entered the global AI conversation with an advisory that mandates "significant" tech companies to secure government approval before launching new models. While the advisory isn't legally binding, it signifies a potential shift toward future AI regulation, according to India’s IT Deputy Minister Rajeev Chandrasekhar. The guidelines also stress the importance of avoiding bias or discrimination in products and not threatening the integrity of the electoral process. The move marks a departure from India's previous hands-off approach to AI regulation, surprising many in the industry and causing concerns about potential hindrances to the nation's competitiveness in the global AI race.



Notably, the advisory follows a recent incident involving Google's Gemini, where the platform faced criticism for its response to a user query about India’s PM Narendra Modi. The response, citing unidentifiable experts, mentioned accusations of Modi implementing policies characterized as fascist. Chandrasekhar expressed disappointment, warning Google about potential violations of the IT Rules, 2021, and provisions of the Criminal Code. The advisory underscores that non-compliance with IT Act and IT Rules may lead to penal consequences for intermediaries, platforms, or users when identified.



Many industry executives, including startup founders and venture capitalists, have expressed surprise and concern over the unexpected regulatory shift. Some argue that such regulations might impede India's progress in the global AI landscape, where it's already perceived to be trailing behind. The reversal from the previous approach, which considered AI growth crucial to India’s strategic interests, has left the industry reevaluating its expectations and strategies.



The guidelines additionally recommend tech firms to appropriately label the potential fallibility or unreliability of the output generated by their AI models. This, coupled with the emphasis on avoiding bias, reflects an intention to ensure responsible and transparent AI practices. As industry players await further clarity on the implications of the advisory, there is uncertainty about its impact on ongoing and future AI projects in India.



While some industry leaders in Silicon Valley have criticized India's policy shift, others view it as a significant move in the evolving landscape of AI governance. The advisory raises questions about the future trajectory of AI regulations globally and how nations will navigate the delicate balance between fostering innovation and addressing potential risks associated with advanced technologies.