New AI law may focus on graded, risk-based rules

A proposed new law on artificial intelligence (AI) may focus on classifying modern AI systems and frame graded risk-based regulation, an official told ET. This may result in minimal regulation for low-risk AI such as chatbots, productivity tools, recommendation systems, while ensuring stricter obligations for high-risk AI used critical sectors such as banking, finance, health and critical infrastructure.

“A new law may allow the government to mandatorily order and set the parameters for safety testing of AI models and systems, as well as issue sector-specific rules over time,” the official said. It will also provide an overarching framework under which sectoral regulations from bodies such as Reserve Bank of India,