Why [Generative] AI Is Repeating Digital Transformation's Biggest Mistakes

The Ministry of Electronics and Information Technology (MeitY) has introduced new AI governance guidelines aimed at balancing innovation with accountability.
These guidelines serve as a blueprint for AI regulation in India, focusing on promoting responsible AI while ensuring growth and safety.

What the guidelines say

The report’s key recommendations are organised around six pillars: infrastructure, capacity building, policy & regulation, risk mitigation, accountability, and institutions.

Infrastructure: The report calls for expanding access to data and compute resources, including subsidised graphics processing units (GPUs) and India-specific datasets through platforms like AIKosh. It urges integration of AI with Digital Public Infrastructure (DPI) such as Aadhaar and Unified Payments Interface (UPI). It also urges the government to incentivise private investment and adoption by MSMEs, with tax rebates and AI-linked loans.

Regulation: India’s approach will be agile and sector-specific, applying existing laws (like the IT Act and the Digital Personal Data Protection Act) while plugging gaps through targeted amendments. The report rules out an immediate need for a standalone AI law, but calls for updates on classification, liability, and copyright, including consideration of a “text and data mining” exception. It also urges frameworks for content authentication to counter deepfakes and for international cooperation on AI standards.

S Krishnan, Secretary, MeitY, said at the launch, “Our focus remains on using existing legislation wherever possible. At the heart of it all is human centricity, ensuring AI serves humanity and benefits people’s lives while addressing potential harms.”

Risk mitigation: As stated earlier, the report proposes an India-specific risk assessment framework to reflect local realities, along with the use of voluntary frameworks and techno-legal measures.

Accountability: A graded liability regime is proposed, with responsibility tied to function and risk level. Organisations must adopt grievance redressal systems, transparency reporting, and self-certification mechanisms.

Institutions: The framework envisions a whole-of-government approach, led by an AI Governance Group (AIGG), supported by a Technology & Policy Expert Committee (TPEC), and technically backed by the AI Safety Institute (AISI).

Capacity building: The guidelines emphasise AI literacy and training for citizens, public servants, and law enforcement. They recommend scaling up existing skilling programs to bridge gaps in smaller cities and enhance technical capacity across government institutions.

How guidelines were prepared

The guidelines were drafted by a high-level committee consisting of policy experts under the chairmanship of Prof. Balaraman Ravindran, IIT Madras.

According to Abhishek Singh, Additional Secretary, MeitY, and CEO IndiaAI, “The committee went through extensive deliberations and prepared a draft report, which was opened for public consultation. The inputs received is a clear sign of strong engagement across sectors. As AI continues to evolve rapidly, a second committee was formed to review these inputs and refine the final guidelines.”

Concerns and Red Flags

  • Internal debates within government circles focus on data privacy and misuse of official data by AI systems.
  • Questions arise over how foreign AI tools might analyze government queries, track user behavior, or infer strategic data.
  • Discussions are ongoing on protecting official systems from foreign AI services.

Proposed AI Content Labelling

Under proposed IT Rules amendments, platforms like YouTube or Instagram must:

  • Label AI-generated content, verified through automated tools.
  • Risk losing legal immunity if they fail to ensure accurate disclosure of synthetic media.
  • This step aims to combat deepfakes and misinformation.

UPSC Relevance

Paper: GS Paper II & III
Themes:

  • Governance & Technology | Data Privacy | AI Regulation | Digital India | Cybersecurity
    Key Angles:
  • Ethical use of emerging technologies
  • Role of government in regulating AI
  • Balancing innovation and accountability
  • India’s model of adaptive, flexible AI governance