Navigating Responsible Artificial Intelligence Regulation In India: A Path To Economic Growth

The government’s recent announcement of intentions to add an AI layer to the India Stack indicates the government’s realisation of how AI may revolutionise several areas, such as healthcare, agriculture, transportation, and governance, and enable faster economic growth and prosperity. Intelligence derived from the world’s greatest reservoir of jurisdiction-specific dynamic data could help iron out India’s inherent physical, social, and cultural flaws and have a transformative influence. India can greatly benefit from the use of AI-based tools by predicting children’s height and weight to eliminate malnutrition, enabling early disease detection, optimising crop yields, enabling efficient management of depleting agricultural resources to address food security challenges, enhancing public service delivery, and so on. However, until the domestic AI ecosystem and infrastructure mature, India will have to rely on international collaboration. The decision not to control AI development in India is a positive step that should aid in the development of AI research, start-up ecosystems, and trained workers.

AI is crucial for India. Harnessing the potential of AI is necessary for the country’s technology sector to thrive and contribute to its overall economic development, since AI may be one of the most important drivers of economic growth and would also be critical for any firm’s or country’s competitiveness. Over the last few years, the Indian government has laid the groundwork for the development of the AI ecosystem, including the launch of the National Strategy on AI, the establishment of a centre of excellence in AI, MEITY developing a portal to showcase India’s AI capabilities (IndiaAI), joining the Global Partnership for AI (GPAI), and now funding AI initiatives. However, most of these activities will take time to build AI products and solutions and will necessitate significant dedicated efforts, resources, and time from all stakeholders. In addition to accelerating AI-related R&D in India, Indian policymakers must be aware of the following and take action to guarantee that Indian enterprises and users are not left behind.

The access problem

Even in an open market situation, only a few countries will have the means or ability to build and develop powerful AI technology on their own. AI development and deployment, like aeroplanes or nuclear technology, necessitate enormous investments, research, and technological capabilities. However, there is a concerted and coordinated campaign happening in which the leaders in AI technology, the United States and China, are both pushing for international legislation that would govern or limit access to AI technologies. This raises severe issues regarding access to AI technology and exacerbates the technological divide. The Indian government and commercial sector should create dedicated research programmes to develop indigenous AI capabilities focused on Indian applications.

Retraining the Workforce

A critical part of AI adoption is ensuring that the workforce has the appropriate skills to use and profit from AI technologies. The government’s plan should prioritise reskilling efforts. This will not only support economic growth by allowing a rise up the value chain with more high-quality labour, but it will also help reduce the work prospects that LLMs may lose, particularly basic entry-level coding and testing work.

That is largely projected to become increasingly automated in the AI era. MEITY, in conjunction with NASSCOM, has established the Future Skills platform to assist in the training of the workforce in AI skills. CBSE has made coding and artificial intelligence (AI) part of the school curriculum.

AI Regulation and Responsible Use

Responsible use of AI technology should be prioritised in global initiatives since it is vital to solving issues such as bias, privacy, security, and responsibility. To ensure justice, transparency, and inclusivity in AI algorithms and applications, guidelines and frameworks must be defined. The White House communiqué issued following the Biden Administration’s meeting with major AI CEOs discusses responsible AI policy. However, there are concerns about the US government’s intent and interpretation of responsible regulation, given that it gave its companies free rein for years and argued against regulation until AI solutions pioneered by US companies gained global traction, and no alternative other than China appears likely soon. India has proposed responsible AI principles as well, but given the global nature of the issue, countries must collaborate on platforms such as the International Standards Organisation.

Regulation’s How: Ethics, Transparency, and Accountability

Regulation can occur at various levels. Given that AI has numerous applications and can range from a platform to an intermediary to end-consumer use, regulating it becomes difficult. Instead of a blanket regulation like the one proposed by the European Union, it could be better to take a sector-based strategy in which regulations are tailored to a specific industry where autonomous decision-making utilising AI will be used, as in the case of the Boeing 737 Max and autonomous cars. Developing procedures for independent audits, establishing ethical review boards, and encouraging openness in the decision-making processes of AI systems are critical steps towards developing public trust and ensuring fair and equitable outcomes.

As it embarks on its AI governance journey, India should utilise its GPAI, ISO, and other AI collaborations to learn from worldwide best practises. It will ensure that a balance is maintained and that there is no future of AI haves and have-nots. Participating in knowledge-sharing platforms, attending international seminars, and forming alliances can all contribute useful insights into effective AI regulation. India may benefit from the experiences of countries such as Canada, Singapore, and the European Union, which have also been developing AI governance approaches through international organisations such as the G20 or GPAI.

India must embrace AI while carefully regulating its use in order to pursue economic growth and technical innovation. It is critical to have a robust regulatory framework that addresses major concerns such as data privacy, algorithmic bias, and accountability. Simultaneously, reskilling projects should be undertaken to provide the workforce with the essential AI capabilities while striking the proper balance between innovation and regulation.