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Rajeev Chandrasekhar Clarifies: AI Launch Advisory Excludes Startups Amid Industry Backlash


In response to widespread industry concern, Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, has clarified that the recent government advisory on AI product launches does not apply to startups. The advisory, issued by the Ministry of Electronics and Information Technology on March 1, had initially directed AI platforms to seek permission before launching their products.

Chandrasekhar took to social media platform X, formerly Twitter, to address the issue. In a tweet, he stated, “Recent advisory of @GoI_MeitY needs to be understood. Advisory is aimed at the Significant platforms, and permission seeking from Meity is only for large platforms and will not apply to startups.”

He reiterated this stance in another post, emphasizing, “So the best way to protect yourself is to use labeling and explicit consent, and if you’re a major platform, take permission from the government before you deploy error-prone platforms.”

The advisory also recommended that AI-generated content should be labeled or embedded with an identifier to trace the origin of any misinformation or deepfake. Platforms were instructed to submit an action taken-cum-status report to the ministry within 15 days.

Startup leaders from the AI ecosystem expressed criticism following the issuance of the advisory. Aravind Srinivas, CEO of Perplexity AI, labeled it a “bad move,” while Bindu Reddy, CEO of Abacus AI, warned of bureaucratic hurdles, stating, “This is how monopolies thrive, countries decay, and consumers suffer!”

Pratik Desai, CEO of Kissan AI, shared his disappointment, saying, “I was such a fool thinking I will work bringing GenAI to Indian Agriculture from SF. This is terrible and demotivating after working 4yrs full time bringing AI to this domain in India.”

In his clarification, Chandrasekhar suggested that platforms can use the permission, labeling, and consent as an “insurance policy” against potential consumer lawsuits. He stated, “Process of seeking permission, labeling & consent-based disclosure to the user about untested platforms is insurance policy to platforms who can otherwise be sued by consumers. Safety & Trust of India’s Internet is a shared and common goal for Govt, users, and Platforms (sic).”

The advisory from the IT ministry followed controversies surrounding Google’s Gemini model and Ola’s Krutrim generative AI platform. Chandrasekhar had previously highlighted these incidents as direct violations of Intermediary Rules of the IT act and various provisions of the Criminal code.

 

bharat bannaer

 

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