New Delhi, Mar 4 (KNN) The government's directive mandating “explicit permission of the government” for the deployment of artificial intelligence (AI) and large language models (LLMs) on the Indian internet has stirred significant controversy, particularly among startups.

Many view this directive as regressive, hindering innovation and progress in the field, reported ET.

Several industry players, including venture capitalists and experts, have expressed concerns that such stringent regulations could stifle startups striving to innovate in this rapidly evolving domain, where India already lags behind.

They argue that these measures would disproportionately favour large corporations with ample resources for testing and obtaining government approval, thereby limiting competition and hindering the growth of smaller players.

On March 2, the government announced that all AI models, large language models (LLMs), software utilising generative AI, or any algorithms currently in beta development or deemed unreliable must obtain explicit permission from the government of India before being deployed for users on the Indian internet.

Pratik Desai, Founder, KissanAI, which developed the agriculture LLM Dhenu, highlighted the detrimental impact of these regulations on startups, particularly if they extend to all types of LLMs and their applications. He questioned the feasibility of evaluation criteria and warns that such regulations could create a scenario akin to the restrictive policies of License Raj 2.0, benefiting only a select few.

Ashish K Singh, managing partner of Capstone Legal, cautioned that overly restrictive regulations may compel IT companies to develop AI-based products overseas to circumvent Indian rules. He emphasised the complexity of regulating AI under the Information Technology Act, noting the challenges in evaluating every new product developed in India.

(KNN Bureau)