AI : Legal Implications In India


The legal implications of Artificial Intelligence (AI) and its impact on India are profound, shaping various sectors globally. AI is driving global technological progress, profoundly impacting various sectors worldwide, including healthcare, finance, and governance, with significant implications for India. However, alongside its transformative potential, AI presents complex legal considerations. This Article delves into the multifaceted legal implications of Artificial Intelligence (AI) within the Indian context. As technological advancements reshape industries and societies, it becomes imperative to explore the evolving legal landscape surrounding AI governance. Intellectual property rights protection, data privacy, and security are crucial aspects to consider. Employment laws, regulatory challenges, and accountability for AI-generated images add further layers of complexity. Through an in-depth analysis of relevant laws, landmark judgments, and contemporary frameworks, this article provides insights into navigating AI in India. It offers recommendations for policymakers, legal practitioners, and industry stakeholders to foster responsible innovation. Upholding legal and ethical principles is essential in the development and deployment of AI technologies.


In India, the legal landscape concerning AI is multifaceted, covering liability, accountability, privacy, and intellectual property rights. With AI systems gaining autonomy, questions arise about accountability, particularly in cases of errors or harm. Establishing clear guidelines for liability allocation is crucial for ensuring fairness and justice in an AI-driven society. Furthermore, ethical AI use intersects with legal frameworks, especially concerning data privacy. India’s evolving data protection laws, like the Digital Personal Data Protection Act,2023 and Information Technology Act, 2000 aim to safeguard individual rights while fostering innovation. Balancing innovation with privacy rights requires ongoing legislative scrutiny.

The Digital Personal Data Protection Act, 2023

The Digital Personal Data Protection Act of 2023 holds relevance for automated processing of personal data, including AI-based processing, within India. Entities overseeing AI usage, termed data fiduciaries, are obligated to ensure adherence to various requirements. These encompass maintaining robust security practices, obtaining explicit consent, delineating data usage, and upholding individual rights, along with promptly reporting breaches.

However, it’s crucial to note that publicly accessible personal data falls outside the Act’s purview. This exclusion raises apprehensions regarding AI utilization and the potential creation of deepfakes without consent. Moreover, profiling or user behavior data is classified as personal data, triggering specific obligations and rights, particularly for entities delivering personalized services.

To streamline user consent across platforms, the Act introduces consent managers, which could evolve into vital repositories of consent preferences, potentially harnessing AI capabilities. Furthermore, the government retains the authority to designate certain data fiduciaries as Significant Data Fiduciaries (SDFs). This designation imposes additional obligations such as appointing officers, conducting audits, and assessments. Such a designation could significantly impact prominent AI-based enterprises operating within the Indian landscape.

Impact of AI in India

AI technology revolutionizes digital content manipulation, creating hyper-realistic media that can deceive viewers. Recent incidents involving videos purportedly depicting public figures highlight the potential risks of AI algorithms being maliciously exploited. India must address legal implications of AI-generated content and develop strategies to mitigate negative effects. AI-generated content, including deepfakes, poses privacy and security challenges, altering online authenticity. Recent deepfake incidents, like Rashmika Mandanna’s video, highlights AI’s deceptive potential.

AI and its legal implication in India

Legal Void in India?

India’s current legal framework lacks tailored legislation to address the intricate nuances of AI-generated content. Although the Information Technology Act, 2000 addresses cybercrimes and data protection, it falls short in adequately handling the challenges posed by AI-generated images.

While specific legislation targeting AI offenses is absent, existing laws provide provisions to tackle such incidents. For example, Section 66E of the IT Act prohibits unauthorized capture, publication, or transmission of individuals’ images, with penalties. Offenders could be prosecuted under Section 66E for unauthorized image use.

The proliferation of AI-generated images, including deepfakes and manipulated media, presents unprecedented challenges for accountability and trust. Upholding the principles of truth and authenticity, stringent legal measures must be enacted to hold creators of AI-generated images accountable for visual content misuse.

Data Privacy: Legal Implication in India

The rapid expansion of AI and automation heightens concerns over data privacy and security. The landmark judgment of Justice K.S. Puttaswamy (Retd.) v. Union of India established the right to privacy as a fundamental right under the Indian Constitution. Leveraging provisions from the Personal Data Protection Act, 2023, and the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011.

Employment and Labor Laws:

AI and automation have significant implications for the workforce, necessitating a reevaluation of labor laws and policies. As observed in the judgment of People’s Union for Democratic Rights v. Union of India (PUDR v. Union of India) 1982– the right to livelihood is integral to the right to life guaranteed under Article 21. Formulating adaptive labor laws and reskilling initiatives is imperative to address concerns over job displacement and ensure equitable opportunities in the AI era.

Advisory On AI Regulation

On March 15, 2024, the Ministry of Electronics and Information Technology (MeitY), issued a revised advisory, replacing the previous one dated March 01, 2024, concerning the regulation of Artificial Intelligence (AI) models, software, or algorithms utilized by intermediaries or platforms. Notably, the new advisory eliminates the prerequisite for explicit government authorization prior to deploying “under-tested” or “unreliable” AI models in India and abolishes the obligation for intermediaries to submit unnecessary reports to MeitY.

This recent advisory underscores the failure of intermediaries or platforms to fulfill their due diligence obligations as stipulated in the Information Technology Rules. It underscores the importance of adhering to Rule 3(1)(b) of the The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. This rule mandates intermediaries to communicate their privacy policy, and user agreement in the user’s preferred language and to prevent users from sharing prohibited content.

However, it’s imperative to note that while the advisory offers guidance, its legal standing is subject to interpretation, as it lacks a specific statutory foundation. Indian courts have previously observed that such advisories do not hold legal binding unless issued under statutory authority.


The legal implications of AI in India and automation require action from stakeholders. Addressing legal aspects of AI governance, data privacy, employment, and accountability is crucial. Fostering innovation within a legal framework ensures equitable AI deployment. Collaboration shapes a legal framework that fosters innovation, protects rights, and ensures accountability.

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AI : Legal Implications In India

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