Regulating Artificial Intelligence in India: Balancing Innovation, Accountability, and Fundamental Rights

The rapid integration of Artificial Intelligence (AI) into governance, commerce, and public decision-making has generated significant legal and constitutional challenges. While AI enhances efficiency and innovation, it simultaneously raises concerns regarding privacy, equality, and accountability. In India, the absence of a comprehensive AI-specific legislation has resulted in a fragmented regulatory landscape, primarily dependent on data protection laws and policy guidelines lacking enforceability. This paper critically evaluates the adequacy of India’s existing legal framework in addressing AI-related harms, particularly algorithmic bias, lack of transparency, and liability issues. Through a doctrinal and comparative analysis, it examines global regulatory approaches, including the European Union’s risk-based model and the United States’ sectoral framework. The paper argues that India’s reliance on soft law mechanisms is insufficient to safeguard constitutional rights. It proposes a hybrid regulatory framework incorporating risk-based classification, mandatory audits, and enforceable transparency obligations. The study concludes that India must adopt a comprehensive and adaptive AI regulatory regime aligned with constitutional principles to balance innovation with accountability.