Regulating The AI In Indian Corporates: Insights From The EU Artificial Intelligence Act
- IJLLR Journal
- 3 days ago
- 2 min read
Pratima Pawar, School of Law, Christ (Deemed to be University), Bengaluru
ABSTRACT
Indian companies are rapidly adopting Artificial Intelligence (AI) across their operational processes in various sectors including finance, compliance, decision making, logistics and supply chains and customer interactions. However, since India has no specific laws or regulations for AI, it is difficult for businesses to understand how to manage the associated risks and ensure that they operate ethically and accountably. In this paper, the researcher will explore the current regulatory frameworks in India for governing AI through other legislation, such as the IT Act, Companies Act 2013, Digital Personal Data Protection Act 2023 and sector-specific rules from regulators such as RBI and SEBI. Here the researcher will also draw upon the EU's Artificial Intelligence Act (EU AI Act) which is a risk based framework and is the first comprehensive piece of legislation addressing the governance of AI. This study uses a doctrinal research methodology, therefore conducting a comparative legal analysis between the Indian and EU approaches to AI regulation. As indicated previously, there has been considerable academic interest in AI ethics and data protection issues, there appears to be a dearth of studies focusing on the regulation of AI from the corporate governance perspective. Therefore, the identified gap provides a significant basis for this study. Findings of this study show that at present, India is taking an open, innovation friendly approach to the regulation of AI. However, there are insufficient, mandatory, audit requirements, risk classification models, and sufficient corporate accountability standards, compared with the structured framework of the EU's regulation. The researcher believes that India could derive benefits from selectively adopting some aspects of the EU's regulatory model, namely a graduated risk assessment regime, obligation of transparency and compliance responsibilities for boards of directors. The study recommends a balanced AI regulatory framework in India, which will allow for continued innovation, while promoting corporate governance and responsible business practices. Ultimately, future AI regulation in India should create a climate of trust, accountability and investor confidence, while still allowing for the rapid technological growth and development.
Keywords: Artificial Intelligence, European Union Artificial Intelligence Act, Indian Corporate Governance, Risk based approach and Comparative Regulatory Framework.
