The government has announced the removal of licensing requirements for major social media subsidiaries and internet giants before launching or deploying their AI models in India.

This decision, announced by the Ministry of Electronics and IT, represents a revision of the AI ​​advisory issued on March 1. The essence of this update is that prominent internet companies are now exempt from the need to obtain government approval before launching an AI model to be obtained in India.

However, this newfound freedom comes with a limitation. Major digital platforms will be required to prominently label any AI models deemed “undertested and unreliable” to alert users to their potential limitations or shortcomings.

As per the ministry's new policy, all under-tested or unreliable AI models, basic or not, must be presented to Indian users with clear labels highlighting their inherent fallibility or unreliability.

In addition, all intermediaries and platforms must ensure that the use of AI models, whether for generative AI or other software or algorithms, does not facilitate the hosting, display, modification or distribution of unlawful content, as set out in Rule 3(1)()( b) the IT Rules or other provisions of the IT Act.

The notice highlights the possible criminal consequences, including prosecution under the IT Act and other relevant laws, for any intermediary, platform or user who violates these regulations.

The digital platforms are instructed to immediately adhere to the new AI guidelines from now on.

Furthermore, the Center has clarified that this relaxation does not extend to startups as they are not covered under the permission to launch new AI models.

The government has expressed that the aim of this advisory is to prevent untested AI platforms from entering the Indian internet landscape, underscoring its commitment to ensuring responsible and responsible use of AI technologies.