Indic Pacific Legal Research

Chapter III: INDIAN ARTIFICIAL INTELLIGENCE COUNCIL

Section 10 - Composition and Functions of the Council

(1)   With effect from the date notified by the Central Government, there shall be established the Indian Artificial Intelligence Council (IAIC), a statutory body for the purposes of this Act.

(2)   The IAIC shall be an autonomous body corporate with perpetual succession, a common seal, and the power to acquire, hold and transfer property, both movable and immovable, and to contract and be contracted, and sue or be sued by its name.

(3)   The IAIC shall coordinate and oversee the development, deployment, and governance of artificial intelligence systems across all government bodies, ministries, departments, and regulatory authorities, adopting a whole-of-government approach.

(4)   The headquarters of the IAIC shall be located at the place notified by the Central Government.

(5)   The IAIC shall consist of a Chairperson and such number of other Members, not exceeding [X], as the Central Government may notify.

(6)   The Chairperson and Members shall be appointed by the Central Government through a transparent and merit-based selection process, as may be prescribed.

(7)   The Chairperson and Members shall be individuals of eminence, integrity and standing, possessing specialized knowledge or practical experience in fields relevant to the IAIC’s functions, including but not limited to:

(i)    Data and artificial intelligence governance, policy and regulation;

(ii)   Administration or implementation of laws related to consumer protection, digital rights and artificial intelligence and other emerging technologies;

(iii) Dispute resolution, particularly technology and data-related disputes;

(iv)  Information and communication technology, digital economy and disruptive technologies;

(v)   Law, regulation or techno-regulation focused on artificial intelligence, data protection and related domains;

(vi)  Any other relevant field deemed beneficial by the Central Government.

(8)   At least three Members shall be experts in law with demonstrated understanding of legal and regulatory frameworks related to artificial intelligence, data protection and emerging technologies.

(9)   The IAIC shall have the following functions:

(i)          Develop and implement policies, guidelines and standards for responsible development, deployment and governance of AI systems in India;

(ii)        Coordinate and collaborate with relevant ministries, regulatory bodies and stakeholders to ensure harmonised AI governance across sectors;

(iii)       Establish and maintain the National Registry of AI Use Cases as per Section 12;

(iv)       Administer the certification scheme for AI systems as specified in Section 11;

(v)         Develop and promote the National AI Ethics Code as outlined in Section 13;

(vi)       Facilitate stakeholder consultations, public discourse and awareness on societal implications of AI;

(vii)      Promote research, development and innovation in AI with a focus on responsibility and ethics;

(viii)    Engage with international AI regulatory bodies, standard-setting organizations, and global AI safety initiatives to promote knowledge exchange and align India’s AI governance framework with global best practices. This includes:

(a)   Developing bilateral and multilateral agreements to support collaborative research, data sharing, and risk management.

(b)   Participating in international AI safety and ethics dialogues to shape global AI norms.

(c)    Coordinating on cross-border data flow standards and AI certification criteria to ensure seamless compliance for international AI applications in India.

(ix)       Take regulatory actions to ensure compliance with the policies, standards, and guidelines issued by the IAIC under this Act, which may include:

(a)   Issuing show-cause notices requiring non-compliant entities to explain the reasons for non-compliance and outline corrective measures within a specified timeline;

(b)   Imposing monetary penalties based on the severity of non-compliance, the risk level involved, and the potential impact on individuals, businesses, or society, with penalties being commensurate with the financial capacity of the non-compliant entity;

(c)    Suspending or revoking certifications, registrations, or approvals related to non-compliant AI systems, preventing their further development, deployment, or operation until compliance is achieved;

(d)   Mandating independent audits of the non-compliant entity’s processes at their own cost, with audit reports to be submitted to the IAIC for review and further action;

(e)    Issuing directives to non-compliant entities to implement specific remedial measures within a defined timeline, such as enhancing data quality controls, improving governance frameworks, or strengthening decision-making procedures;

(f)    In cases of persistent or egregious non-compliance, recommending the temporary or permanent suspension of the non-compliant entity’s AI-related operations, subject to due process and the principles of natural justice;

(g)   Taking any other regulatory action deemed necessary and proportionate to ensure compliance with the prescribed standards and to safeguard the responsible development, deployment, and use of AI systems.

(x)   Advise the Central Government on matters related to AI policy, regulation and governance, and recommend legislative or regulatory changes as necessary;

(xi)  Perform any other functions necessary to achieve the objectives of this Act or as assigned by the Central Government.

(10)The IAIC may constitute advisory committees, expert groups or task forces as deemed necessary to assist in its functions.

(11)The IAIC shall endeavour to function as a digital office to the extent practicable, conducting proceedings, filings, hearings and pronouncements through digital means as per applicable laws.

CHAPTER III-A: INDIAN ARTIFICIAL INTELLIGENCE SAFETY INSTITUTE

Section 10-A – Composition and Functions of the Institute

(1)   With effect from the date notified by the Central Government, there shall be established the Indian Artificial Intelligence Safety Institute (AISI), a statutory body for the purposes of this Act.

(2)   The Indian Artificial Intelligence Safety Institute (AISI) shall be established as an autonomous body corporate with perpetual succession, a common seal, and the power to acquire, hold and transfer property, both movable and immovable, and to contract and be contracted, and sue or be sued by its name.

(3)   The Governing Body of the Indian Artificial Intelligence Safety Institute shall consist of the following members:

(i)    A Director General of AI Safety, with at least 15 years of experience in artificial intelligence research, who shall serve as the Chief Executive Officer of AISI.

(ii)   One representative from the Ministry of Electronics and Information Technology (MeitY), not below the rank of Joint Secretary.

(iii) One representative from the Ministry of Science and Technology (DST), not below the rank of Joint Secretary.

(iv)  One representative from the Ministry of Defence, not below the rank of Joint Secretary.

(v)   One representative from the Ministry of Communications, not below the rank of Joint Secretary.

(vi)  One representative from NITI Aayog, not below the rank of Joint Secretary.

(vii)One representative from the Committee for AI Centers of Excellence (CoEs) as an ex-officio member

(viii)               One Representative from the Committee for Technical Institutions in Critical AI Research as an ex-officio member

(ix) One Representative from the Committee on AI Ethics and Safety as an ex-officio member

(4)   In addition to the Governing Body, AISI shall include the following ex-officio members:

(i)    The Principal Scientific Advisor to the Government of India, or their nominee.

(ii)   One member from the Prime Minister’s Economic Advisory Council.

(iii) One representative, being a government official or expert appointed by the Central Government, responsible for coordinating with global AI safety institutes to ensure knowledge exchange and collaboration on emerging risks and best practices.

(5)   The AISI shall establish specialized committees as deemed necessary for fulfilling its mandate. These committees shall include but are not limited to:

(i)    Committee for AI Centers of Excellence (CoEs): This committee shall represent all AI-related Centers of Excellence across India.

(ii)   Committee for Technical Institutions in Critical AI Research: This committee shall coordinate with technical institutions engaged in critical research on AI systems.

(iii) Committee on AI Ethics and Safety: This committee shall guide AISI on ethical principles governing AI systems.

(6)   The AISI shall undertake the following functions under this Act:

(i)    Develop protocols for risk assessment, monitoring, and mitigation concerning high-risk AI applications, particularly in strategic sectors such as healthcare, defence, finance, and public administration.

(ii)   Formulate and establish safety standards for high-risk AI applications for the IAIC. These standards shall be aligned with national security priorities and international norms governing AI safety.

(iii) Conduct annual audits of high-risk AI systems deployed across various sectors. The findings from these audits shall be reported to IAIC for further action or policy formulation.

(iv)  Undertake research initiatives focused on identifying emerging risks associated with new developments in artificial intelligence. Such research shall be conducted in partnership with IAIC, academic institutions, technical bodies and centres of excellence (CoEs), and international organizations dedicated to AI safety.

(v)   Submit an annual report to the Central Government and IAIC, detailing safety incidents, audit findings, and research advancements.

(7)   AISI may engage in international partnerships and dialogues, contributing to India’s leadership in responsible AI governance.