THE LEGAL CHALLENGES OF ARTIFICIAL INTELLIGENCE IN INDIA


Author: J. Jerom Stuward, Government Law College, Salem


To the Point


Artificial Intelligence (AI) has rapidly evolved from being a niche technological advancement to a transformative force in governance, healthcare, law, and education. Although Artificial Intelligence holds vast potential to drive innovation and improve efficiency in India, it simultaneously raises significant ethical dilemmas and legal uncertainties. Issues such as data privacy, algorithmic bias, lack of transparency, and absence of accountability mechanisms raise questions about how existing laws can address these new challenges. With no specific legislation dedicated to AI yet, India faces a regulatory vacuum. This article explores the urgent need for a comprehensive legal framework to manage AI’s growth responsibly and safeguard constitutional rights.


Abstract


Artificial Intelligence is reshaping India’s technological landscape, yet the legal system remains unequipped to handle its complex implications. From concerns about personal data privacy and algorithmic discrimination to questions of accountability and liability, AI poses unprecedented legal challenges. India currently lacks a dedicated legal framework to regulate the development and deployment of AI systems. This article highlights the urgent need for comprehensive legislation that addresses these gaps, ensuring ethical use of AI while protecting individual rights. Comparative insights from global approaches are also examined to propose a balanced and forward-looking legal response for India.


Use of Legal Jargon


The regulation of Artificial Intelligence (AI) intersects with various legal doctrines, yet existing Indian laws offer limited clarity. The Information Technology Act, 2000 remains the primary legislation, but it lacks specific provisions for autonomous systems or algorithmic liability. Concepts like mens rea (criminal intent), vicarious liability, and strict liability become complex when applied to AI, especially in cases involving automated decision-making without human intervention. Additionally, the absence of a dedicated data protection law in India leaves AI-based data processing unchecked, raising serious concerns under the right to privacy, as upheld in Justice K.S. Puttaswamy v. Union of India. Further, terms such as “intelligent agents,” “automated profiling,” and “bias detection” now demand statutory recognition. The legal vacuum in defining AI’s status, responsibility, and regulatory boundaries points to the urgent need for nuanced legal reforms to ensure both innovation and accountability in the Indian legal landscape.


The Proof


India currently lacks a standalone legislation to regulate Artificial Intelligence, leaving a legal vacuum in addressing its implications. The Information Technology Act, 2000, although widely applied in digital contexts, does not define or regulate AI-specific risks such as automated profiling, autonomous liability, or algorithmic accountability. The Personal Data Protection Bill, 2019 yet to be enacted proposes safeguards for data use but falls short of addressing AI’s ethical concerns and real-time decision-making models. The National Strategy for Artificial Intelligence released by NITI Aayog in 2018 emphasizes AI’s potential in sectors like healthcare, agriculture, and education, but it remains a policy document without binding legal force. In comparison, countries like the EU are progressing with the Artificial Intelligence Act, offering a rights-based and risk-based framework. India must develop statutory mechanisms to integrate transparency, accountability, and ethical standards into AI development, ensuring harmony with constitutional mandates and global best practices.


Case Laws


Justice K.S. Puttaswamy v. Union of India
The Supreme Court, through this historic verdict, affirmed that the Right to Privacy is an intrinsic part of the Right to Life and Personal Liberty guaranteed under Article 21 of the Constitution. This case holds immense relevance in AI governance, particularly regarding data-driven AI systems that use personal information for profiling and decision-making. It underscores the need for lawful, transparent, and consent-based data processing in AI technologies.


Shreya Singhal v. Union of India
By invalidating Section 66A of the IT Act, 2000, the Court highlighted the critical need to safeguard freedom of speech and expression from arbitrary and overly broad digital regulations. It highlights the need for AI regulations that are precise, non-arbitrary, and constitutionally compliant, especially when AI is used for surveillance or censorship.
Thaler v. Hirshfeld.


In this U.S. case, the court held that an AI system (DABUS) could not be recognized as an inventor under existing patent laws. Though not Indian, it signals the global legal consensus on human authorship/inventorship and the gap in legal recognition of autonomous AI.

Conclusion


Artificial Intelligence is reshaping how societies function, offering immense benefits in sectors like healthcare, education, governance, and law. However, its unregulated growth in India raises serious legal, ethical, and constitutional concerns. The absence of specific legislation to govern AI applications creates a regulatory vacuum that may lead to violations of privacy, biased decision-making, lack of accountability, and infringement of fundamental rights. While policy initiatives like the National Strategy for AI provide a visionary roadmap, they lack enforceability and legal precision.
Existing laws such as the Information Technology Act, 2000, are outdated and insufficient to address the complexities posed by autonomous systems. As AI systems become more integrated into public life, questions of liability, authorship, data protection, and algorithmic fairness cannot be ignored. Comparative developments like the EU’s Artificial Intelligence Act highlight the global momentum toward responsible regulation.
India must act proactively to draft and implement comprehensive AI legislation that balances innovation with accountability. Legal reforms should incorporate principles of transparency, fairness, and human-centric development. A robust legal framework will not only protect individual rights but also position India as a global leader in ethical and lawful AI deployment.

FAQS


What is Artificial Intelligence (AI) in the legal context?
Artificial Intelligence describes machines or systems designed to replicate human cognitive abilities, including reasoning, analysing data, and making informed decisions. In law, it includes tools for legal research, predictive justice, surveillance, and administrative automation.
Why does India need AI-specific legislation?
Current Indian laws like the IT Act, 2000, do not adequately cover challenges like autonomous decision-making, algorithmic bias, or liability for AI actions. A dedicated law would ensure ethical use, accountability, and rights protection.

How does AI affect privacy rights in India?
AI systems often process large volumes of personal data for training and decision-making, risking privacy breaches. Without strong data protection laws, individuals are vulnerable to profiling and misuse of their personal information.

Can AI be held legally liable?
Current legal frameworks recognize liability only for human individuals, and as AI systems are not considered legal entities, determining accountability for their actions remains ambiguous and unresolved.

What global models can India learn from?
The European Union’s AI Act offers a strong framework based on risk assessment, transparency, and human oversight. India can adapt similar models to its legal and social context.

References

BIBLIOGRAPHY

Sharma, R. (2020). Cyber Laws in India. LexisNexis.
Srikrishna Committee Report (2018). Report on Data Protection Framework for India.

JOURNALS / ARTICLES

Mohanty, S. (2022). “Artificial Intelligence and Indian Legal Framework: A Critical Review,” Indian Journal of Law and Technology, Vol. 18(2).
Aggarwal, R. (2021). “Data, Algorithms, and Accountability: The Legal Challenges of AI in India,” NLU Delhi Law Review, Vol. 7.
Kapoor, P. (2020). “Liability in AI Systems: The Need for Statutory Clarity,” Indian Bar Review, Vol. 47(1).

WEBLIOGRAPHY

NITI Aayog (2018). National Strategy for Artificial Intelligence.
https://www.niti.gov.in/national-strategy-artificial-intelligence

Ministry of Electronics & Information Technology (MeitY). Draft National Data Governance Framework Policy (2022). https://www.meity.gov.in

European Commission. The Artificial Intelligence Act – Proposal 2021.
https://digital-strategy.ec.europa.eu/en/policies/european-approach-artificial-intelligencel

The Hindu (2024). “India’s AI push and the legal roadblocks ahead.” https://www.thehindu.com

PRS Legislative Research. Overview of the Personal Data Protection Bill, 2019. https://prsindia.org

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