Artificial Intelligence & Emerging Technologies
Artificial intelligence, blockchain, the Internet of Things (IoT), and other emerging technologies are reshaping industries and creating new legal questions that existing frameworks were not designed to address. The legal landscape for these technologies is rapidly evolving in India and globally.
Artificial Intelligence: The Regulatory Landscape
India
India does not yet have a comprehensive AI-specific statute. The approach has been sector-specific and guidance-based. The Ministry of Electronics and Information Technology (MeitY) has published frameworks and policy documents on responsible AI. The DPDP Act, 2023 is relevant to AI systems that process personal data. The Bureau of Indian Standards (BIS) has been working on AI standards. SEBI, RBI, and IRDAI have issued sector-specific guidelines touching on the use of AI and algorithmic systems in financial services.
European Union
The EU AI Act, which entered into force in 2024, is the world’s first comprehensive AI regulation. It adopts a risk-based approach, classifying AI systems as unacceptable risk (prohibited), high risk (subject to conformity assessment and registration), limited risk (subject to transparency obligations), or minimal risk (largely unregulated). Indian companies deploying AI systems in or targeting the EU market must assess their obligations under the EU AI Act.
Key Areas of Practice
AI Compliance and Risk Assessment
Advising on the legal risks associated with AI deployment, including discrimination and bias liability, data protection obligations in AI training and inference, explainability requirements, and sector-specific regulatory obligations. Assisting organisations in conducting AI risk assessments and building governance frameworks.
AI Contracts
Drafting and reviewing agreements for AI development, procurement, and deployment, including provisions on data ownership, model ownership, licence to training data, accuracy and performance warranties, and allocation of liability for AI-related harms.
Intellectual Property and AI
Advising on IP ownership questions arising from AI-generated content. Under current Indian law, copyright subsists in works with human authorship — works generated autonomously by AI without human creative input may not qualify for copyright protection. Trade secret protection for AI models and training datasets is an important alternative protection strategy.
Blockchain and Distributed Ledger Technology
Advising on the legal status of smart contracts under Indian law, regulatory compliance for blockchain-based financial products, and intellectual property considerations for blockchain protocols. The legal treatment of cryptocurrencies and digital assets in India continues to evolve.
Fintech and Regulatory Technology
Advising fintech companies on applicable regulatory frameworks including the Payment and Settlement Systems Act, RBI guidelines on payment aggregators and gateways, account aggregator frameworks, and applicable DPDP Act obligations.
Frequently Asked Questions
Who is liable when an AI system causes harm?
Indian tort law and the IT Act may both be relevant depending on the nature of the harm. Liability may fall on the developer, deployer, or operator of the AI system depending on the facts. Contractual allocation of liability between AI developers and deployers is therefore critical. This is an area where the law is still developing in India.
Can AI-generated works be protected by copyright in India?
The Copyright Act, 1957 protects original literary, artistic, dramatic, and musical works that are the result of human skill and judgment. Current jurisprudence and scholarly consensus suggest that works generated autonomously by AI — without sufficient human creative input — may not qualify for copyright protection in India. The position may differ where a human author exercises significant creative choices in prompting or curating AI outputs.
Is a smart contract legally enforceable in India?
A smart contract is a computer programme that automatically executes pre-defined actions when specified conditions are met. Whether a smart contract constitutes a legally enforceable contract under the Indian Contract Act, 1872 depends on whether the essential elements of a contract (offer, acceptance, consideration, free consent, lawful object) are present. Self-executing code can satisfy offer and acceptance requirements if the parties intend to be bound. However, questions around dispute resolution, applicable law, and identity of contracting parties require careful legal structuring.