Indian Startups exempt from govt approval to launch GenAI models, advisory only for large platforms

Minister of State for Electronics and IT, Rajeev Chandrasekhar, clarified that the recent advisory from the IT Ministry regarding generative artificial intelligence (AI) systems applies solely to large technology companies, not startups.

He emphasized that seeking permission from the Ministry of Electronics and Information Technology (MeitY) is only necessary for significant platforms and will not affect smaller businesses.

“Advisory is aimed at significant platforms and permission seeking from MeitY is only for large platforms and will not apply to startups… is aimed at untested AI platforms deploying on the Indian Internet,” Chandrasekhar said in a post on social media platform X.

Chandrasekhar explained on the social media platform X that the advisory aims to regulate untested AI platforms deployed on the Indian internet, particularly to mitigate potential risks during the upcoming Lok Sabha elections.

However, why startups are exempt remains to be seen, considering their systems may produce profoundly flawed and inaccurate information.

Chandrasekhar noted that the process of seeking permission, labeling platforms under testing, and obtaining consent from users serves as an “insurance policy” for platforms, protecting them from consumer lawsuits.

Ahead of the Lok Sabha election announcement, the IT Ministry issued an advisory to generative AI companies like Google and OpenAI, urging compliance with Indian laws and safeguarding electoral integrity. Platforms offering under-testing or unreliable AI systems to Indian users must obtain permission from the government and clearly label potential inaccuracies in generated content.

Furthermore, the government requires these platforms to implement traceability measures, ensuring content can be traced back to the source of misinformation or deepfakes. Google’s AI platform, Gemini, faced scrutiny from MeitY for its responses regarding Prime Minister Narendra Modi.

Outputs from such platforms are influenced by various factors, including training data and algorithmic filters, leading to occasional errors known as hallucinations. The advisory mandates that platforms facilitating the creation or modification of potentially misleading information must embed identifiable markers to trace the user responsible.

In essence, the advisory aims to regulate AI platforms to prevent the dissemination of misinformation or deepfakes, particularly in the context of crucial events like elections.