India to Unveil Draft AI Regulatory Framework in June-July: Minister

The Indian government is set to release a draft regulatory framework for artificial intelligence (AI) by June or July this year, aiming to harness the technology's potential for economic growth while addressing potential risks and harms. The announcement was made by Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, during the opening session of the two-day Nasscom leadership summit in Mumbai.

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Harnessing AI for Economic Growth

Chandrasekhar emphasized the government's commitment to exploiting the full potential of AI across various sectors, including agriculture, healthcare, and manufacturing. He highlighted the need to establish guardrails to prevent the misuse of AI and ensure its responsible deployment. India's AI market is projected to reach USD 17 billion by 2027, driven by factors such as increasing enterprise tech spending, a growing AI talent base, and significant investments in AI.

Global Governance Framework for AI

Given the global and boundary-agnostic nature of the Internet and AI, Chandrasekhar stressed the importance of a global governance framework that addresses safety and trust in AI. He acknowledged the need for clear guidelines for platforms to address issues like bias and misuse during model training.

India's AI Talent and Investments

India possesses the second-highest installed talent base in AI, with 420,000 employees working in AI job functions. The country also has the highest skills penetration, with three times more AI-skilled talent than other nations. The demand for AI talent in India is expected to grow at a 15% CAGR till 2027, driven by the tech industry's increasing focus on AI and ML.

Upskilling and Reskilling for AI

Recognizing the significance of human capital in the AI journey, leading firms are investing heavily in upskilling and reskilling their workforce in AI and related technologies. Some organizations have allocated USD 1 billion over the next three years dedicated to upskilling.

The government's upcoming AI regulatory framework aims to strike a balance between fostering innovation and addressing potential risks associated with AI. As India's AI market continues to grow, the development of a skilled workforce and responsible AI practices will be crucial for harnessing the technology's full potential for economic growth and societal progress.