This note, the third of a multi-part series on investing in the Indian artificial intelligence (“AI”) sector, discusses a set of advisories (“AI Advisories”) with respect to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“Intermediary Guidelines”), focusing on intermediary liability.
The definition of ‘intermediaries’ under the Information Technology Act, 2000 (which is likely to be replaced soon by the “Digital India Act”) may include a wide variety of entities, including telecommunications and network service providers, search engines, online payment sites and marketplaces, as well as social media, online gaming and e-commerce platforms. The Indian government has been actively considering the advisability of issuing a dedicated regulation with respect to AI, including via specific provisions of the Digital India Act. Until the rollout of a bespoke legal framework, the Intermediary Guidelines may be further amended in connection with AI.
At present, the language of the AI Advisories is broad enough to cover all kinds of AI tools and AI-generated content. Such broad-based application could have significant consequences for all types of players in the AI space since the standards of due diligence that relevant intermediaries need to abide by with respect to AI technologies appear to be high.