In its working paper, Economic Advisory Council to the PM (EAC-PM) has called for need to regulate artificial intelligence (AI) through a complex adaptive system (CAS) approach that will include establishing guardrails and partitions, mandating manual overrides and authorisation chokepoints, mandatory audits for transparency and accountability, laying out liability protocols and setting up of a specialist regulator for the sector.
According to the paper, more substantiated concerns have led to a growing demand for regulatory frameworks that ensure Al development and deployment are conducted safely, ethically, and transparently, safeguarding against risks like systemic breakdowns, loss of privacy, national security threats, and compromised critical infrastructure. To effectively regulate AI (algorithm, training data sets, models, and applications), the paper proposes implementing clear boundary conditions to limit undesirable Al behaviours, including creation of partition walls to prevent systemic failures.
As per the paper, predefined liability protocols will ensure that entities or individuals are held accountable for Al-related malfunctions or unintended outcomes.
EAC-PM called for a need for a dedicated, agile, and expert regulatory body for Al with a broad mandate and the ability to respond swiftly, as traditional regulatory mechanisms often lag the rapid pace of Al evolution.
Furthermore, by applying strategies similar to financial regulators in India and the US, such as partitions, transparency standards, control points, and accountability measures, Al’s development can be steered responsibly, ensuring safety and ethical deployment akin to the orderly functioning of financial markets.
