The exponential rise of the use and economic potential of artificial intelligence has made it a subject of front-rank legal importance. In a world driven by information and a growing awareness among consumers that they need to demand more control over their information, there is a strong need for legal reform and regulation in this space.

It is evident that the digitisation of modern trade and communications allows for, and indeed may require the large-scale processing of data by organisations and governments. Many countries, including India, are tying development and economic progress to greater digitisation and integration of online systems. Regulators in India have taken notice of this and are making efforts to control AI in a sympathetic way while at the same time preserving consumer privacy.

Although not yet in effect, the Digital Personal Data Protection Act, 2023 (DPDPA), is expected to come into force in a phased manner in the second half of 2024. While the DPDPA does not explicitly regulate AI, it will impose obligations on organisations that use personal data. These obligations are broad and extend to companies that employ personal data in conjunction with AI. Such entities may, for instance, train their AI models, personalise product offerings, carry out targeted advertising or identify trends in consumer behaviour. Consequently, market players will undoubtedly have to factor in compliance with the new law when it comes into force if they wish to continue to use and explore AI models.