India Poised to be Next Big AI Regulator

From ChatGPT’s game-changing approach on college essay-writing to Midjourney’s controversial victory in the art world, AI has sparked both excitement and concerns. Hype aside, the AI boom has brought automation to the masses, dominating public discourse and shaping the future of work. With this, one thing is clear: the need for informed governance is more critical than ever before, and India could be the next big regulator for AI.

As per the Union Budget 2023, India has identified AI as one of its focal points for the upcoming year. Regulators have created wide-ranging initiatives to push for further research on AI – ‘Make AI In India and Make AI Work for India,’ laying the groundwork for the country becoming a future AI leader. Away from home, India has also taken the chair position on the Global Partnership on Artificial Intelligence, a multinational initiative focused on regulating AI. 

Considering the current regulatory outlook, it seems that India has not only sensed the disruptive threat that AI may pose in the future, but has also taken the initiative to regulate for a tech-focused future. The relationship between regulation and innovation is well-documented, with multiple studies illustrating the importance of regulation in building safe innovations for societies.

How India is Tackling AI Regulation Head-On

The Indian government’s approach on AI regulation is encapsulated in a statement by Rajeev Chandrashekar, the Minister of State for Electronics and Information Technology. “There is not just the use of AI from the point of view of escaping scrutiny and accountability, but there is also an overreach of AI. There is the whole issue of harm and misuse of AI. So, those are all the boundaries that we want to build without really coming in the way of innovation,” he said.

As seen by this comment, Indian regulators have taken a more holistic approach to riding the AI wave. For instance, one of the highlights of the Budget was the announcement of three specialised AI centres at top educational institutions to build India’s AI talent pool. This move accurately captures the right way forward for regulators — taking control of the talent pool and promoting fair research while leaving measured execution to companies, alongside the localisation of AI. 

Goldilocks Approach to Regulation

This sentiment of Indian regulators is echoed by some of the top minds in AI. In a blog, co-authored with Michelle Rempel Garner, AI researcher extraordinaire Gary Marcus details the two approaches currently being taken towards AI regulation: 

• The first option is to allow companies to continue doing what they were doing, leaving the market to decide what works and what doesn’t. 
• The second is heavy-handed regulation that will make it very difficult for companies to even research AI applications, stopping the field in its tracks. 

As seen by the current state of affairs (like Bing Chat running rampant), allowing companies to take the final call in releasing powerful AI models is not the right approach. Neither is the second option, as this will take away the multiple positive benefits AI can have on our society. This is why Marcus proposes a third option — the Goldilocks choice.

In this approach, regulators must treat AI as they would any other technology with potential for misuse — through liberal use of red tape. In the authors’ words, “It’s time for governments to consider frameworks that allow for AI research under a set of rules that provide ethical standards and safety, while considering a pause on the widespread public dissemination of potentially risky new AI technologies.”

India is primed to be one of the countries to adopt this approach in AI regulation. A study by Stanford University shows that India is leading the race when it comes to AI skill penetration, boasting thrice the global average. The study also found that 65% of Indian organisations have adopted AI in some form, showing the quick-to-adopt nature of Indian companies. 

The country seems to be ready to adopt AI, with the only missing piece being an incentive to research, which will be remedied by the forward-looking regulation detailed in the Budget. Apart from regulatory moves, India is poised to become one of the biggest talent pools for AI and ML in the world. Companies like Accenture, Bosch, Intel, Wipro, NVIDIA, Microsoft, etc have dedicated resources for creating AI labs and research centres in Indian educational institutions. 

With the chair position on GPAI, a huge talent pool, willingness to adapt, and futuristic regulation to spur innovation, India seems to be in the best position to take on the top regulator role when it comes to AI. With the current regulatory atmosphere, it is clear that AI and technology will be one of the main drivers of India becoming a developed nation by 2047.