Sanjiv Sanyal calls for SEBI-style AI regulatory framework

• ByStartupStory     |    November 24, 2023

Sanjiv Sanyal, a member of the Prime Minister’s Economic Advisory Council (PMEAC), advocated the need for an AI regulatory framework akin to SEBI, emphasizing the necessity for a system with manual overrides similar to financial market circuit breakers. He addressed the inadequacy of self-regulation and bureaucratic oversight in the AI space, proposing a regulator well-versed in technology evolution.

Sanyal suggested India should contemplate establishing a regulator for AI, akin to SEBI, comprehending the technology’s nuances and focusing on its dynamic evolution rather than predicting its trajectory. Speaking at the ‘DATE with Tech’ event, he stressed the significance of a regulator with a profound understanding of AI’s development.

“For regulating the AI, a system has to be put in place, you need manual overrides just like circuit breakers in the financial market,” Sanyal reiterated.

He emphasized the importance of accountability and proactive measures, likening it to the accountability boards in companies and calling for pre-emptive accountability measures for AI, including regular audits and enforceable standards of explainability.

Drawing parallels to the financial world, Sanyal suggested applying similar frameworks to regulate AI’s evolution effectively. When questioned about the timeline for implementing regulations, he expressed confidence in the evolution of regulatory norms, anticipating a reasonably swift implementation.

Sanyal talked about the global consensus on the need for AI regulation, acknowledging diverse approaches adopted by countries like the US, China, and Europe, ranging from self-regulation to state-controlled and top-down regulatory models, respectively. He emphasized the necessity for a well-thought-out protocol for developing AI regulation, aligning with India’s growing capacity to manage this domain sensibly.

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