India Cancels Requirement for Approval of AI Model Launches: What It Means for Developers and Innovation

India has recently revised its AI advisory following backlash from local and global entrepreneurs and investors. The Ministry of Electronics and IT presented an updated AI advisory to industry stakeholders on Friday, removing the previous requirement for government approval before launching or deploying AI models in the South Asian market.

The new guidelines instead suggest that companies label any AI models that are under-tested or unreliable, ensuring users are aware of their potential shortcomings. This change comes after the IT ministry faced significant criticism earlier this month, with notable voices like Martin Casado, a partner at Andreessen Horowitz, describing India's initial proposal as "a travesty."

The revised advisory represents a shift in India’s approach to AI regulation, contrasting with its earlier hands-off stance. Less than a year ago, the ministry opted against imposing restrictions on AI development, recognizing the sector as essential for India's strategic growth.

Although the new advisory has not been officially published online, a copy has been reviewed. The ministry clarified that, while the advisory is not legally binding, it indicates the government's intent for future regulations and underscores the importance of compliance.

Key points of the advisory emphasize that AI models must not be used to disseminate unlawful content under Indian law and must not facilitate bias, discrimination, or jeopardize the integrity of the electoral process. Intermediaries are encouraged to implement “consent popups” or similar notifications to make users aware of potential unreliability in AI-generated outputs.

Moreover, the advisory maintains a focus on making deepfakes and misinformation easily recognizable, advising intermediaries to label or embed content with distinctive metadata. However, it has dropped the previous requirement for companies to trace the “originator” of specific messages.

In summary, India’s updated AI advisory reflects a more balanced approach to regulation, prioritizing user awareness and content integrity while encouraging innovation.