New AI Law to Be Modelled on IT Act, Pg 13.

Key Highlights:

• The government will introduce a full-fledged AI law after finalising draft deepfake and synthetic content regulations under the IT Rules, 2021.
• The law will be modelled on the IT Act, 2000, which provides the framework for digital regulation in India.
• Public consultation on draft rules closes on November 6, after which finalisation will begin.
• The proposed framework mandates that all synthetically generated or AI-altered content must be labelled or embedded with identifiable metadata stating its artificial nature.
• Large social media intermediaries (with over 5 million users) will be required to establish systems for technical verification and user declarations.
• Violations may invite penalties under a new legal framework designed specifically for AI misuse.

Detailed Insights:

• Legal Necessity:
  • Existing IT Rules, 2021, derive authority from the IT Act but do not explicitly cover AI-generated or deepfake content.
  • Experts argue that since deepfakes involve complex ethical and technological issues beyond intermediary regulation, a separate legislative framework is essential.
• Proposed Provisions:
  • Deepfake creators must clearly label or watermark AI-generated visuals and audio with non-removable identifiers.
  • Labels must cover 10% of visual frames or be clearly stated in audio files, ensuring transparency for users.
  • AI platforms and social media intermediaries must deploy proportionate safeguards to prevent dissemination of harmful synthetic content.
• Broader Implications:
  • The legislation aims to balance technological innovation and accountability, protecting citizens from misinformation, identity fraud, and reputational harm.
  • Once enacted, the law will serve as India’s foundational framework for regulating AI systems, generative models, and autonomous decision-making algorithms.
• Future Expansion:
  • Officials indicated that the AI Act can evolve dynamically, adding rules as new technologies emerge—similar to the iterative structure of the IT Act.

Scientific/Technical Concepts Involved:

• Deepfake: AI-generated synthetic media where a person’s likeness or voice is digitally altered or fabricated to create deceptive content.
• Metadata Tagging: Embedding data within digital files to identify authenticity, source, and modifications.
• AI Intermediary Regulation: Legal mechanisms to make platforms responsible for hosting, labelling, or removing harmful AI-generated content.