In a surprising move, India’s Ministry of Electronics and IT has entered the global AI debate by issuing an advisory, requiring significant tech firms to obtain government permission before launching new models. Although the advisory is not legally binding, it marks a notable shift in India’s stance on AI regulation.
The advisory, not publicly available but reviewed by TechCrunch, urges tech firms to ensure their services or products do not permit bias, discrimination, or threaten the integrity of the electoral process. IT Deputy Minister Rajeev Chandrasekhar emphasizes that while the advisory is not mandatory, it signals the future of regulation, stating, “We are doing it as an advisory today asking you to comply with it.”
The ministry draws authority from the IT Act, 2000, and IT Rules, 2021, in the advisory. It calls for compliance with immediate effect and requests tech firms to submit an “Action Taken-cum-Status Report” within 15 days.
Surprisingly, the advisory is directed at “untested AI platforms deploying on the India internet” and excludes startups. Additionally, tech firms are asked to “appropriately” label the “possible and inherent fallibility or unreliability” of the output generated by their AI models.
This directive represents a U-turn from India’s previous hands-off approach to AI regulation, raising concerns among industry executives. Many startups and venture capitalists fear that such regulations could impede India’s competitiveness in the global AI race, where it already lags behind.
Notable figures in Silicon Valley have criticized India’s policy shift. Aravind Srinivas, CEO of Perplexity AI, labeled it a “bad move,” while Martin Casado from Andreessen Horowitz expressed disbelief, calling it a “travesty.”
The advisory comes in the wake of India’s IT Deputy Minister expressing disappointment with Google’s Gemini regarding a user query about PM Narendra Modi’s political stance. Chandrasekhar warned Google that such responses were “direct violations” of the IT Rules, 2021, and could lead to penal consequences for intermediaries or platforms and their users when identified.
The impact of this advisory on the future of AI in India remains uncertain, with concerns about stifling innovation and hindering the nation’s progress in the rapidly evolving AI landscape. Industry stakeholders await further developments and clarification on the practical implications of this unexpected policy shift.