The Unwritten Code: Understanding the Legal Foundations of AI in India

The Unwritten Code: Understanding the Legal Foundations of AI in India

The boardroom was filled with tension as industry leaders, policymakers, and legal experts gathered for a high-stakes discussion. The agenda? The future of Artificial Intelligence in India.

At the center of the room, Mr. Iyer, a seasoned technology lawyer, adjusted his tie and addressed the audience. “We are at a turning point,” he began. “AI is no longer just a tool—it is shaping economies, influencing justice, and even making decisions that affect human lives. But with great power comes an even greater responsibility. How do we ensure that AI serves society without overstepping ethical boundaries?”

A young entrepreneur in the room raised his hand. “Sir, is there a legal roadmap for AI in India? I mean, beyond the global frameworks?”

Mr. Iyer smiled. “Indeed, there is. While we don’t yet have a dedicated AI law, India has been laying the groundwork for responsible AI governance. Let’s break it down.”

The National AI Strategy: A Vision for Ethical AI

He picked up a printed document titled National Strategy for AI, 2018, released by NITI Aayog. “This,” he said, “was our first structured attempt to outline a strategy for AI development. It focused on using AI for social good—healthcare, education, agriculture, and smart governance. But here’s the catch: while it provided a broad vision, it lacked specific laws to hold AI developers accountable. It was a guiding light, but not a legal shield.”

A professor of law in the audience leaned forward. “So, it set the direction but didn’t impose enforceable regulations?”

“Precisely,” Iyer responded. “Think of it as a moral compass rather than a rulebook. It urged responsible AI development but didn’t create binding obligations. That’s where later policies stepped in.”

The Draft National Data Governance Framework Policy, 2022: A Step Towards AI Accountability

He flipped to another document—the Draft National Data Governance Framework Policy, 2022. “Now, this is where things started getting serious,” he continued. “This policy wasn’t just about AI—it was about data, the very fuel that drives AI systems.”

A corporate compliance officer in the room nodded. “Data governance… so this regulates how AI systems handle personal data?”

“Exactly,” Iyer confirmed. “It emphasizes transparency, consent, and data-sharing norms to prevent AI from becoming a black box of unchecked decision-making. It also proposes a mechanism to manage anonymized data responsibly, ensuring that AI models don’t misuse personal information.”

The Future: A National AI Regulation Framework in the Making

The room was now fully engaged. “So, what’s next?” asked an AI ethics researcher.

Iyer placed both hands on the table. “That’s the big question. The government is working on a National AI Regulation Framework—a law that will likely define AI liability, fairness, and accountability. We don’t have the final version yet, but it’s expected to cover AI bias, decision-making transparency, and penalties for unethical AI practices.”

The room fell silent for a moment. A policy analyst finally spoke up. “So, we are moving from guidance to governance, from vision to enforcement.”

Iyer nodded. “Yes. And when that framework arrives, it will mark India’s transition from being an AI innovator to an AI regulator.”

Lessons to Take Away

As the meeting wrapped up, Mr. Iyer summarized the key learning points:

  1. Ethical AI is a priority – The National AI Strategy promotes AI for social good but lacks legal teeth.
  2. Data governance is fundamental – AI laws must align with data protection principles to ensure privacy and fairness.
  3. Regulation is inevitable – India is on the verge of introducing specific AI laws, ensuring accountability for developers and users.
  4. AI cannot be a lawless entity – Just as businesses follow corporate laws, AI must operate within a legal framework to prevent misuse.

As the attendees dispersed, one thing was clear—AI’s legal future in India was being written, not just in codes and algorithms, but in laws that would shape its destiny.

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