Authored By: Aarti
Shree Guru Gobind Singh Tricentenary University
Abstract
Artificial Intelligence (AI) is rapidly transforming industries and societal norms, thus bringing new challenges and complexities to the legal systems across the globe. The gradual acceptance of AI technologies in areas such as health, finance, transport, and governance in India has set forth major legal questions pertaining to matters such as accountability, liability, transparency, and bias in algorithmic decision-making. Hence, this fast-paced technological change has equally tested the Indian legal framework in keeping up with it. There is no enactment in India addressing AI as such, but existing legal statutes relating to various sectors are applied to address the concerns brought about by AI. This article tries to explore the areas where AI and Indian law meet, touching upon some of the primary legal challenges of accountability of algorithms, ethical concerns, and regulation of AI-driven systems. It throws light on the existing gaps in the current Indian legal framework and stresses the urgency of designing new, robust regulatory frameworks that work on the twin goals of promoting innovation and protecting individual rights.
Introduction
The fast pace of developments in Artificial Intelligence (AI) has given rise to a new wave of technological innovations that transformed industries and economies in their wake. AI systems are involved in decision-making from recommending certain products in e-commerce, to tenure of credit for financial services, diagnosing diseases, and even shaping public policy through predictive analytics. However, the adoption of AI in India has been relatively fast in the healthcare, transportation, finance, and governance sectors. AI, on the one hand, presents so many unprecedented opportunities, but also on the other, there are many legal challenges, especially in matters of accountability, transparency, bias, and human rights.
The growth accounting of Artificial Intelligence in various spheres has been overriding the opportunity of creating legal frameworks to govern its existence; thus, Indian laws, drafted specifically for the pre-digital era, do not stand when confronting the unique problems posed by Artificial Intelligence. On the one hand, AI systems are increasingly becoming self-autonomous and are capable of performing acts and making decisions without a human intervening and, on the other, when something goes wrong, then the question that arises is, who is responsible? Are the makers of AI, the users, or is it the AI itself? Algorithmic accountability or the accountability for the results of decisions made by algorithms, is one of the major legal concerns in the Indian context. The said article seeks to explain these legal challenges from the angle of liability and accountability within the Indian legal system and provides a way forward for meaningful AI regulation.
Indian Legal Challenges of AI Systems
Algorithmic accountability and liability
Perhaps explaining one of the most important questions an AI system brings along is different accountability. Who is responsible for damages in the case an algorithm denies a loan for the deserving or makes a wrongful diagnosis? Traditional legal systems are in place to address issues concerning human agents’ liability-they are not ready to address those toward AI systems. Automated decision procedures of AI, being foregoing transparency, lead to another perplexing issue: attributing responsibility.
Under Indian laws, a tort and contract perspective on liability arising when any creator, operator, or user is guilty of injury is unclear. If, for example, an autonomous car is involved in an accident, is the manufacturer of the car liable, or the developer of its software, or the owner of the car? Rajendra Singh v. State of Rajasthan (2014) held that in matters of tort regulation, the law laid on the person who causes the operation of a vehicle. While the said case is certainly not an AI case, it does highlight the ambiguity that exists as far as attributing responsibility for decisions made by machine-based technologies. The absence of a clear framework concerning AI accountability sets the law in problematic territory. With increasing autonomy being granted to AI systems, it may finally come into question in courts whether the operator, the developer, or even the AI itself should bear responsibility for any decisions taken by or acts committed through the algorithm. The existing laws are insufficient to address the nuances that pertain to AI accountability, and thus the relevance and composition of those provisions must be reviewed and, if necessary, altered.
Ethical Concerns and Bias in AI
Another critical aspect is the bias that may plague AI algorithms. AI systems, if trained unfairly, will present biased outcomes; if data are inculcated with societal bias, the AI will get down to work reproducing and, in fact, amplifying such biases. This becomes especially problematic in adjudication processes concerning hiring, credit scoring, policing, and judicial decision-making, where algorithmic bias becomes a discriminating force against already marginalized or at-risk populations. In India, caste, religion, and gender biases prevail in many sectors, and therefore, the ethical issues surrounding bias in AI become quite serious. Facial appearance analysis is an area where racial and gender bias are surprisingly rampant. In 2018, an NCRB facial recognition system was set up to help in crimes detection, but many concerns were raised about the possible misuse of the system and the bias inherent in it. There are as yet no laws passed by the Indian government that deal with algorithmic bias; however, the PDPB briefly touches on some aspects of data protection but does not deal adequately with bias in AI systems.
In the landmark judgment of National Legal Services Authority v. Union of India (2014), the Supreme Court of India pointed out the need to ensure equality and non-discrimination under Articles 14, 15, and 16 of the Constitution. Yet, the question of enforcing these constitutional principles on AI systems remains hardly touched upon. A growing need is emerging for legislation that guarantees fairness, transparency, and non-discrimination within AI decision-making as these systems are increasingly deployed.
Concerns for Data Protection and Security
Using an AI system normally means gathering, processing, and analyzing huge quantities of personal data. On the Indian side, the legal framework for data protection is still an evolving phenomenon-with the absence of any concrete data privacy law-the risk taken is quite high. Of course, the IT Act, 2000, and the Personal Data Protection Bill, 2019, have tried to address data privacy issues, yet to the extent their application varies, no single law explicitly tackles data protection concerns relating to an AI technology.
In K.S. Puttaswamy v. Union of India (2017), it was held by the Court that privacy is a fundamental right, protected by Article 21 of the Indian Constitution. This pinnacle-precedent has since been instrumental for stronger data protection safeguards; though, AI-specific privacy issues were undiscussed. AI in conjunction with big data and machine learning models often entails the processing of sensitive personal data that, if not adequately protected, may infringe upon the privacy and, hence, in the absence of any dedicated regulation around AI, record the most concerning cases of potential misuse of personal data against a party.
While comprehensive in several respects, the Personal Data Protection Bill, 2019, does not entirely cover specific challenges posed by AI. For instance, it includes provisions for data localization and consent but does not provide clear provisions regarding AI systems’ accountability for data use, processing, and security.
The Need for Legal Frameworks for AI in India
With the rapid growth of AI technologies, it has become imperative that India develops a legal framework addressing issues specific to algorithmic accountability, transparency, ethical concerns, and privacy. Such a framework should include:
Clear Guidelines for Accountability and Liability: There must be a legal provision that explicitly lays down accountability for decisions taken by AI in case damages are caused by AI systems. The liability should therefore extend to Algorithm inventors, operators, and users as per the quantum of their involvement with the decision-making process.
Regulation of Algorithmic Bias: To shore against bias creeping into AI systems, there must be regulations laid by the government of India that require AI developers to ensure their AI systems are fair, non-discriminatory, and transparent. Such regulations could make bias testing and algorithm audits mandatory.
Data Privacy and Security: Given the unique nature of privacy issues posed by AI, India needs to have in place an overarching regulatory framework. This framework should include, inter alia, provisions regarding responsible use of personal data by AI systems and guidelines concerning data protection and security.
Establishing Guidelines for Ethics: As AI is developed, it should continuously be subjected to ethical concepts of fairness, transparency, accountability, and human rights. The government should set up regulatory bodies tasked with overseeing AI ethics and advising on the best practices.
Conclusion
The rise of Artificial Intelligence opens up unprecedented opportunities but raises critical legal, ethical, and societal challenges. The absence of a well-solidified legal framework in India for AI is creating uncertainty and legal lacunae in important areas such as accountabilities, transparency, data privacy, and bias. While some protections are available from the existing laws, they fall short of adequately addressing the unique complexities of AI systems.
To protect the rights of individuals and to create an ecosystem of responsible AI, India should put in place laws specific to the legal issues encountered through AI technologies. These laws should strike a balance between encouraging innovation and strictly guarding against AI’s misuse. It will be of utmost importance for the Indian legal system to keep pace with the rapid advancements in AI to ensure that the use of technology is ethical, transparent, and responsible.
Reference(S)
K.S. Puttaswamy v. Union of India, (2017) 10 SCC 1
National Legal Services Authority v. Union of India, (2014) 5 SCC 438
Rajendra Singh v. State of Rajasthan, 2014 SCC OnLine Raj 4174
Information Technology Act, 2000 – India’s primary law addressing cyber activities; limited in dealing with AI-specific scenarios.
The Personal Data Protection Bill, 2019 (PDPB) – Proposed to regulate data privacy, yet not fully equipped to deal with AI challenges like algorithmic decision-making and automated processing.
NITI Aayog’s Discussion Paper on National Strategy for Artificial Intelligence (2018) – Outlines ethical and regulatory concerns related to AI in India.
World Economic Forum (WEF) – “Artificial Intelligence Governance: A Holistic Approach to Implement Ethics into AI” (2020) – International perspective on regulatory mechanisms and ethical principles.
