Artificial Intelligence and Indian Law: Bridging the Regulatory Gap for Responsible Innovation

Artificial Intelligence (AI) has emerged as a transformative force across industries, offering opportunities for efficiency, innovation, and economic growth. India is witnessing rapid adoption, with high consumer usage and integration in sectors such as banking, healthcare, education, agriculture, and public administration. However, this expansion exposes critical regulatory gaps in accountability, transparency, liability, and data protection. Existing laws, including the Information Technology Act, 2000 and the Digital Personal Data Protection Act, 2023, provide partial oversight but do not address AI-specific challenges such as algorithmic bias, explainability, and cross-border data governance. This review critically examines the intersection of AI and Indian law, evaluates global regulatory approaches (EU AI Act, U.S. sectoral model, China’s algorithm governance), and identifies India’s policy challenges. The paper proposes a risk-based regulatory framework for India, emphasizing clear liability allocation, mandatory transparency, ethical safeguards, and the creation of an independent AI regulatory authority. By balancing innovation with accountability, India can ensure citizen protection and establish itself as a global leader in responsible AI governance.