Chanakya Policy & Research Foundation

Critical emerging technologies (CET) perform dual-use functions, meaning they can be used for constructive as well as destructive purposes. Moreover, geopolitical tensions around the world are growing, and most countries increasingly view Critical emerging technologies as central to national security, which increases the potential misuse of these emerging technologies.
Globalisation and economic integration have even amplified technological proliferation, which not merely disrupts market forces but also brings unique legal and regulatory framework challenges. Artificial Intelligence is one of the most significant CETs of decades. Although its development dates back to 1955 when John McCarthy said that “machines behave in ways that would be called intelligent if a human were so behaving”, it is considered the next space race between countries. The current architecture of AI development, characterised by an oligopolistic structure, means a small number of powerful multilateral cooperations, as well as developed countries, have a monopoly over technology. This article assesses the global AI governance framework and brings unique recommendations to India to develop a comprehensive AI governance framework.
Artificial Intelligence governance framework refers to the processes and standards that ensure AI systems and tools are safe and ethical. It works as oversight mechanism that addresses risks such as bias, privacy infringement as well as inherent flaws arising from the human element in AI creation and maintenance. Currently, India has been practicing informal governance mechanisms such as policy documents or committees to manage AI development in nation. and generated a wealth of non-binding Al principles and ethical frameworks in the past five years, but there is an urgent need to bring relevant law for the oversight process of Artificial Intelligence.
Indian policymakers need to adopt centralised governance framework that establishes key definitions, standards, and regulatory approaches, similar to the European Union’s Al Act. EU’s risk-based approach significantly helps to assess the different levels of harm; AI can be regulated efficiently withouthindering innovation. For example, the Indian regulatory structure can give greater freedom in lower-risk areas like chatbots, productivity tools, etc., while introducing additional mechanisms in high-risk areas, such as critical infrastructures, biometric Identification, etc., to avoid harm. A centralised riskbased governance framework is crucial for better Al innovation across sectors. Additionally, in November 2024, under Brazil’s presidency, G20 countries developed an AI governance framework. Countries pledged to use AI technology for sustainable development and reduction of national inequality. India can incorporate human-centric sustainable AI design to regulate AI harms against humans. Overall, above recommendations can be used as compliance frameworks when testing Al systems prior to deployment and during their operations of AI in india. To supplement centralised AI regulatory framework, Indian policymakers must establish a comprehensive data protection framework to safeguard individual privacy and encourage safe and secure collection, storage, and use of data. India has enacted the Digital Personal Data Protection Act (DPDPA) 2023, but it faces challenges to secure individual privacy comprehensively as it gives broader exemptions to government agencies and undermines the balance between individual privacy and state interests. Additionally, there has been no extraterritorial provision similar to the EU’s General Data Protection Regulation (GDPR) within our legal framework. Big data is a key component in Al as it will be generated at great volume from various sources. Therefore, a comprehensive data governance standard is needed of the hour. It will provide a safe and secure environment to support the life cycle of big data across sectors, which will also contribute to the acceleration of Al’s deployment and innovation. India can adopt UNESCO’s – ‘Digital Common framework’ to create a secure space for the private and public to share the data they have collected. It can also used as raw input for research and further advancement of AI innovation.
The principle of transparency was commonly adopted as an ethical standard across all world’s AI governance frameworks. Indian policymakers must adopt this approach, specifically in high-risk Al sectors. It can foster greater public confidence in AI and fast-track the wider adoption of the emerging technology. Along with transparency mechanism, policymakers need to establish an independent oversight body with proper legislative backing. It will act as a regulatory watchdog for overall AI development and ensure that powerful AI should be aligned with human values. AI has the ability to self-improve and enhance its algorithms, which makes it vulnerable to incorporating real-world human bias into the algorithm so continuous monitoring will be crucial to maintaining consistently safe outcomes and detecting any anomaly as early as possible.
As an emerging leader of the Global South, India needs to push for global AI alliances across various international platforms. By bringing diverse expertise together, global alliances can help to accelerate Al innovation and eliminate the risk of an AI race. It will also significantly address the global south’s challenges, such as technological advancement, climate change, affordable clean energy, and greater access to quality education. India can put forward demand of Global South i.e. adoption of open-source technology and democratisation of AI technology at WTO, UN and G20 summit. Emerging technologies have evolving markets, and there is no unilateral governance framework specifically for AI. For example, the United States has adopted the Market-led governance framework, which emphasises sector specific regulation and voluntary guidelines to promote flexibility, innovation and private sector development. On the other hand, China has a State-Directed approach under its New Generation Artificial Intelligence Development Plan (2017). It emphasises strong government oversight and authoritative allocation of resources to make China a global leader in AI by 2030. From the Indian perspective, it has NITI Ayog’s policy document – ‘AI for ALL’, for responsible use of AI, and India’s AI mission is to build critical infrastructure for AI. However, India lacks a formal, comprehensive mechanism to regulate AI development and governance. It can adopt a balanced Regulatory Approach that combines elements of market-driven innovation with appropriate oversight. To counter the concentration of wealth and power produced by Al, Indian policymakers must implement redistributive policies to rebalance the scale and ensure that the benefits and risks generated by Al are distributed equitably. For example, Facebook is currently being sued by the U.S. government for having become a social media monopoly. It will eventually help to reduce growing wealth inequality across the country, especially after the distortion of the labour market due to the adoption of AI.
According to the Expert Group report of IndiaAI 2023, Artificial Intelligence has the potential to contribute USD 967 billion to the Indian economy by 2035, and it can advance the nation’s USD 5 trillion GDP goal. Overall, India can learn from global experience and develop a unique framework that promotes sustainability and responsible use of Artificial Intelligence.

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