India Shifts AI Policy: Mandates Government Approval for New AI Models
In a significant policy reversal, India has introduced new guidelines requiring major tech companies to obtain government approval before launching AI models. The move signals a stricter regulatory approach to artificial intelligence, diverging from the nation’s previously hands-off stance.
Key Details of the New AI Advisory
- Issued by: India’s Ministry of Electronics and IT (MeitY)
- Effective immediately: Companies must comply and submit status reports within 15 days
- Scope: Applies to “significant” tech firms, excluding startups (as clarified by IT Deputy Minister Rajeev Chandrasekhar)
- Legal basis: IT Act, 2000 and IT Rules, 2021
Core Requirements for AI Companies
- Pre-launch approval: Government clearance required for new AI models
- Content safeguards: Must prevent bias, discrimination, and threats to electoral integrity
- Transparency measures: Mandatory labeling of AI outputs’ potential unreliability
A Dramatic Policy Shift
Less than a year ago, India had opted against AI regulation, viewing the sector as crucial to national strategic interests. This abrupt change has surprised industry leaders and investors alike.
Deputy Minister Chandrasekhar described the advisory as “signaling the future of regulation,” emphasizing its focus on “untested AI platforms on the Indian internet.”
Industry Backlash and Concerns
The policy shift has drawn sharp criticism from both domestic and international tech communities:
- Pratik Desai (Kisan AI founder): Called the move “terrible and demotivating” for his agricultural AI work
- Aravind Srinivas (Perplexity AI CEO): Described it as a “bad move by India”
- Martin Casado (Andreessen Horowitz): Reacted strongly, calling it a “travesty”
Many fear the regulations will hinder India’s ability to compete in the global AI race, where it’s already perceived as lagging behind.
What Triggered the Policy Change?
The advisory follows a controversial incident involving Google’s Gemini (formerly Bard) AI. When asked about Prime Minister Narendra Modi, Gemini cited unverified claims about fascism, prompting Chandrasekhar to warn Google about violations of IT Rules and criminal codes.
Compliance and Consequences
While currently an advisory, non-compliance could lead to:
- Penal consequences for platforms
- Legal action against intermediaries or users
The government emphasizes this as a first step toward more formal AI regulation in India’s rapidly evolving digital landscape.
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