2024 • Bill No. XXXV of 2024
National Artificial Intelligence Technology Regulatory Authority Act, 2024
Establishing NAITRA as India’s apex regulatory body for monitoring and regulating AI technologies with comprehensive oversight powers and civil court authorities.
Overview
The National Artificial Intelligence Technology Regulatory Authority Act, 2024, establishes NAITRA (National Artificial Intelligence Technology Regulatory Authority) as India’s apex regulatory body for AI technologies. Introduced by Shri Sandosh Kumar P., this legislation addresses the urgent need for comprehensive AI governance in response to rapid technological advancement and emerging risks from deepfakes, job displacement, and unethical AI deployment.
NAITRA's Mission
To function as the apex authority for regulating and monitoring AI deployment across India, ensuring safety, security, transparency, accountability, equality, and fairness in AI technology adoption while fostering innovation and ethical development.
Why NAITRA is Essential
- Regulatory Gap: India currently lacks specific mechanisms addressing generative AI, deepfakes, and AI-related crimes
- Rapid AI Development: New sophisticated AI tools are released regularly with increasing capabilities
- Job Displacement Concerns: AI is replacing human labor at an accelerating pace
- Global Standards: EU and Canada have initiated AI regulations, requiring India to establish comparable frameworks
- Trust and Innovation: Need for balanced approach that fosters AI benefits while safeguarding against misuse
NAITRA Authority Structure
Section 3 establishes NAITRA’s organizational structure with specialized expertise across AI technology, ethics, policy, and enforcement domains.
Authority Composition
Chairperson
Expert with specialized knowledge and extensive experience in the AI landscape, appointed by Central Government for up to 4 years.
Two Members
Nominated by Central Government based on ability, integrity, and standing with extensive professional experience in AI risk assessment.
Officers & Staff
Appointed experts to assist Authority in efficient functioning, including specialists in AI, law, and enforcement.
Required Expertise for Members
- AI Risk Assessment: Understanding various risks associated with AI, machine learning, and deep learning
- Ethical Deployment: Experience in organizations involved in ethical AI deployment
- Innovation Development: Background in conceptualizing and developing ethically responsible AI projects
- IT Policy Knowledge: Understanding of State and Central Government IT policies
- Future Impact Analysis: Awareness of AI threats in replacing human jobs and societal implications
| Aspect | Details |
| Headquarters | New Delhi |
| Regional Offices | Established as deemed necessary across India |
| Term Length | Up to 4 years for Chairperson and Members |
| Appointment Authority | Central Government |
NAITRA's Functions and Powers
Section 4 outlines comprehensive functions that position NAITRA as the central authority for AI governance across all sectors in India.
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Apex Regulatory Authority
Function as the supreme authority for regulating and monitoring AI and related technologies deployment across India.
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Monitoring Framework
Design comprehensive regulatory landscape based on safety, security, transparency, accountability, equality, and fairness principles.
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Risk Identification
Identify key privacy challenges, bias issues, misinterpretation risks, employment impacts, and related concerns to minimize human risks.
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Policy Formulation
Develop comprehensive national AI policy, strategic action plans, guidelines, and monitoring frameworks for ethical AI deployment.
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Public Awareness
Implement schemes and projects for creating awareness about AI prospects and risks among the general public.
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Cross-sector Coordination
Coordinate with government departments for risk assessment, support innovators, and identify human labor displacement impacts.
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High-risk AI Management
Identify and prohibit high-risk AI applications and deepfake activities associated with unacceptable risks to society.
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Grievance Redressal
Investigate complaints about worker rights deprivation due to AI replacement and act as national-level grievance mechanism.
Civil Court Powers
Section 5 grants NAITRA extensive civil court powers for effective investigation and enforcement, ensuring the Authority can compel cooperation and gather evidence necessary for proper AI governance.
Investigation Powers
- Summons and Examination: Power to summon and enforce attendance of any person from anywhere in India and examine them under oath
- Document Production: Authority to require discovery and production of any relevant documents
- Affidavit Evidence: Capability to receive evidence through affidavits for efficient proceedings
- Public Record Access: Right to requisition public records or copies from any court or office
- Commission Issuance: Power to issue commissions for examination of witnesses and documents
- Additional Powers: Any other investigative powers as may be prescribed by regulations
⚖️ Legal Significance
These civil court powers give NAITRA substantial authority to investigate AI-related violations, gather evidence, and compel cooperation from individuals and organizations. This ensures effective enforcement of AI regulations across all sectors.
Investigation Powers
| Power | Application | Impact |
| Summons Authority | Compelling testimony from AI developers, deployers, and affected parties | Ensures comprehensive investigation of AI-related complaints and violations |
| Document Discovery | Accessing AI algorithms, training data, decision logs, and internal communications | Enables thorough examination of AI system development and deployment practices |
| Cross-jurisdictional Reach | Investigating AI implementations across state and organizational boundaries | Provides uniform enforcement capability across India's diverse AI landscape |
High-Risk AI and Prohibited Activities
NAITRA has the critical responsibility to identify and prohibit AI applications that pose unacceptable risks to society, with particular attention to deepfake technology and other harmful AI uses.
Categories of Prohibited AI
🚫 Unacceptable Risk AI Applications
NAITRA will identify and prohibit AI systems and deepfake activities that pose unacceptable risks to public safety, democratic processes, individual rights, or social stability.
Deepfake Regulation
The Act specifically addresses deepfake technology, defined as “artificial media that has been digitally altered to replace a person’s face or body or sound with that of another.” Key concerns include:
- Reputation Damage: Potential to harm reputations through falsified media
- Evidence Fabrication: Risk of creating false evidence for legal or personal purposes
- Institutional Trust Erosion: Undermining trust in authentic media and institutions
- Democratic Impact: Potential to disrupt elections and political processes
Deepfake Regulation
| Risk Level | Description | Regulatory Approach | Examples |
| Unacceptable Risk | Clear threat to safety, rights, or democratic values | Complete prohibition | Malicious deepfakes, social scoring systems |
| High Risk | Significant potential for harm in critical applications | Strict regulation and oversight | AI in healthcare, financial services, law enforcement |
| Medium Risk | Moderate potential for bias or misuse | Guidelines and monitoring | HR AI systems, content recommendation algorithms |
| Low Risk | Minimal risk to individuals or society | Basic transparency requirements | AI chatbots, game AI, productivity tools |
Government Consultation and Coordination
Section 6 mandates that appropriate governments must consult NAITRA on all AI-related policies, ensuring coordinated and informed decision-making across all levels of government.
Consultation Requirements
- Policy Development: All AI application and deployment policies must involve NAITRA consultation
- Technology Assessment: Government technology adoption decisions require NAITRA input
- Regulatory Alignment: Ensures consistency between national and state-level AI governance
- Cross-sector Coordination: Facilitates uniform AI standards across government departments
🤝 Collaborative Governance
This consultation requirement ensures that NAITRA’s expertise informs government decision-making while maintaining democratic accountability and federal cooperation in AI governance.
Financial Framework and Resources
The Act establishes a robust financial framework for NAITRA operations, ensuring adequate resources for effective AI governance across India.
Funding Sources
- Central Government Grants: Primary funding through parliamentary appropriation
- Dedicated Budget: Specific allocation for AI regulatory activities
- Infrastructure Investment: Resources for technology and monitoring systems
- Staff and Operations: Funding for specialized personnel and ongoing operations
Accountability and Transparency
Section 8 establishes comprehensive accountability mechanisms:
- Audit Requirements: Accounts audited by Comptroller and Auditor-General of India
- Annual Reports: Detailed activity reports submitted to Central Government
- Parliamentary Oversight: Reports laid before both Houses of Parliament
- State Coordination: Relevant portions shared with state governments for local action
💰 Financial Transparency
While the Act establishes funding mechanisms, actual expenditure estimates are not yet available. The financial memorandum indicates both recurring and non-recurring expenses will be involved but specific amounts require further determination.
Implementation and Compliance Strategy
Organizations and governments must prepare for NAITRA’s establishment and the comprehensive regulatory framework it will implement.
Preparation Phases for Organizations
| Phase | Timeline | Key Activities | Deliverables |
| Pre-establishment | 6 months before NAITRA | AI inventory, risk assessment, policy development | AI register, risk analysis, preliminary policies |
| Initial Compliance | NAITRA establishment | Basic compliance measures, documentation | Compliance framework, documentation systems |
| Full Implementation | 12-18 months post-establishment | Complete compliance, monitoring systems, training | Full compliance program, monitoring capabilities |
| Ongoing Compliance | Continuous | Regular reporting, audits, updates | Compliance reports, audit results, improvements |
Compliance Essentials
- AI System Inventory: Comprehensive catalog of all AI implementations
- Risk Classification: Assessment of AI systems according to NAITRA risk categories
- Documentation: Detailed records of AI development, deployment, and impact
- Monitoring Systems: Capabilities for ongoing AI performance and bias monitoring
- Incident Response: Procedures for handling AI-related issues and complaints
- Training Programs: Staff education on AI ethics and regulatory compliance
Table of Contents
Quick Facts
Bill Number:
XXXV of 2024
Introduced by:
Santosh Kumar P.
House:
Rajya Sabha
Date:
July 26, 2024
Authority Name:
NAITRA
Headquarters:
New Delhi
Term Length:
Up to 4 years
Court Powers:
Civil Court Authority