January 9, 2024 | Posted in News
This year, India is likely to introduce measures to control artificial intelligence (AI). The government is reportedly said to amend the Information Technology (IT) Rules of 2021 and propose mandatory AI regulations for companies harnessing this advanced technology. The amendments are soon to be notified by the Ministry of Electronics and Information Technology (Meity).
The New Rule
The modified rules will not only safeguard the biased usage of AI, but will also control deepfake and synthetic content, especially securing financial platforms such as loan applications.
Currently, the parameters under biased use of AI are mainly centred around caste, religion, community and national security, among others. Obliging to these set variables the new guidelines will be focused on expanding safer internet.
The Spurred Discussion
Prateek Shukla, Co-Founder and CEO of Masai School said, “The proposed amendments to the Indian IT Act signal a critical move in addressing the pitfalls of biased AI usage, a concern that has gained prominence with the exponential rise of artificial intelligence.”
Shukla stressed that beyond the realm of traditional biases, the amendments will specifically target the rising threats posed by deepfakes and synthetic content, issues that have witnessed an alarming 30 per cent increase in reported cases over the last year.
The regulations, with explicit instructions, aim to fortify financial platforms, particularly in securing loan applications, given the 25 per cent rise in fraudulent activities in the financial sector attributed to AI manipulation, the Masai CEO added.
According to the State of Deepfakes report by Home Security Heroes, a US-based organisation the proliferation of online deepfake videos has surged by 550 per cent, reaching a staggering 95,820, as revealed in 2023. The report ranked India at the sixth position as the most susceptible country to this emerging threat.
Weighing on this report Rouble Chhabra, a Corporate Litigating Attorney said that the potential amendments are against the growing AI threats and to transform the realms of consumerism and capitalism. However, the ultimate consequences, whether positive or negative, remain uncertain.
The Expected Change
While the proposed amendments are meant to foster fairness and accountability in AI systems. Abhinav Jain, Co-Founder & CEO of Almonds AI underscored that “The guidelines should also incorporate sufficient flexibility for ongoing innovation while embedding mandatory impact assessments and documentation of development processes.”
Similarly, Munab Ali Beik, the Head of Compliance Advisory Practices, highlighted the importance of the new regulations in safeguarding users’ data and their trust in AI tools. To address any potential breaches or deceptive practices regarding information and data security, the rule is anticipated to enforce a substantial penalty to ensure the protection of both users and the nation, Beik added.
The primary objective of regulation should be to achieve a harmonious equilibrium between innovation and safeguarding the interests of users. The amendments should consider industry experts’ opinions with policymakers to define and empower the implementation standard for industry-specific regulations, shared Arnab Dutta, Head of Product, Apna AI and Director of Digital and AI, Invenics.
In a similar vein, Jaspreet Bindra, the Managing Director and Founder of The Tech Whisperer stressed collaborative endeavours that bring together legal experts, technologists and policymakers are important for establishing a legal framework amidst the chaos caused by artificial intelligence.
Amit Prasad, Founder and CEO, SatNav Technologies suggested that instead of attempting to safeguard numerous aspects that can be exploited, it is crucial to prioritise the effective utilisation of resources to enhance the lives of citizens, streamline business operations and improve the efficiency of students, professionals, businessmen and others. This approach will have a direct impact on the entire ecosystem, ultimately contributing to the growth of the overall economy and GDP.
While experts are stressing modified rules, a report by Consultancy.in, highlighted that by 2035, AI has the potential to double the annual growth rate in terms of its added gross value, which is expected to grow by USD 7.1 billion. These findings once again raise concerns about the need for stringent AI regulations.
Digital India Bill
There has been speculation that similar provisions are also likely to be introduced in the upcoming Digital India Bill, seeking to empower users’ algorithmic accountability from internet intermediaries and social media companies.
Commenting on the probability Edul Patel, CEO of Mudrex, a Global Crypto Investment Platform said, “The anticipated inclusion of provisions in the Digital India Bill shows a commitment to user empowerment and data privacy. It is also focused on tackling deepfake and synthetic content, along with stringent guidelines for loan apps, demonstrating a comprehensive approach to addressing evolving challenges in the digital landscape.”
Additionally, Dr Mayura Nagar, Asst Professor – Data Science & Technology, K J Somaiya Institute of Management (KJSIM), urged the Centre to adopt laws and regulations that could comprehensively address issues associated with cutting-edge technologies. The professor said flexibility is of utmost importance in the AI age today.