‘Need of the hour: AI with safeguards’, say experts at IIMB-USC Mini Conference on AI, Data & Technology Policy

They call for leveraging non-personal data, enabling AI-driven innovation, and balancing regulation with flexibility to foster inclusive growth and ensure strategic autonomy in technology policy

IIM Bangalore hosted the IIMB-USC Mini Conference on ‘AI, Data, and Technology Policy: Lessons from India’, on 9th December 2024, where changing socioeconomic and policy implications of artificial intelligence (AI) in India were examined and discussed.

Leading academics, business professionals, and policymakers gathered at the event, which was co-hosted by the USC Marshall School of Business and the Centre for Digital Public Goods (CDPG) at IIMB.

Opening remarks

In his remarks, Prof. Shantanu Dutta of USC Marshall emphasized the conference’s primary objective: to foster a discourse that inspires new research questions (RQs) and paves the way for innovative academic and industry initiatives. Prof. Dutta highlighted the role of such interdisciplinary forums in generating actionable insights and shaping future AI policies and frameworks.

Prof. Srinivasan R of IIMB introduced the mission and vision of the CDPG, underlining its focus on becoming a global repository for research on digital public goods. He outlined the centre’s future plans to strengthen its contributions to policy research and AI-enabled strategies for addressing India’s unique challenges.

Session 1: Possibilities and boundaries of AI

The first session, moderated by Prof. Shantanu Dutta, delved into the possibilities and limitations of AI, particularly in the context of India. Prof. Dutta framed the discussion by highlighting a significant global debate: the contrast between human cognitive abilities and AI capabilities. He cited research by a child psychologist in the United States, demonstrating that infants could identify nuances better than generative AI systems, showcasing the inherent complexities of human intelligence. Against this backdrop, he emphasized the opportunities AI presents for India, particularly in addressing consumer-centric challenges and enabling enterprises to innovate.

Industry perspective on AI

Dr. Shubhashis Sengupta of Accenture provided an industrial perspective on AI, categorizing its applications into consumer AI, interface AI (enterprise-focused), industrial AI, sovereign AI, and scientific AI. He observed that while consumer AI, such as chatbots and recommendation systems, has seen widespread adoption, enterprise and industrial AI are emerging as critical areas for innovation. Sovereign AI, which addresses national-scale challenges, and scientific AI, which accelerates research and discovery, were identified as particularly promising domains.

Dr. Sengupta emphasized India’s position as one of the largest data marketplaces globally, highlighting the country’s potential for developing localized AI solutions. He also listed the key challenges, including data quality, linguistic diversity, and the absence of robust AI policy frameworks. India’s linguistic diversity, in particular, complicates the development of language models, with multinational firms like Google and Microsoft actively working to address these challenges through language-based mass-market solutions.

Discussing global trends, Dr. Sengupta referred to the European Union’s AI Act, which prioritizes the development of critical AI systems with safeguards to prevent adverse consequences. He argued that similar policy frameworks in India could facilitate AI adoption while ensuring ethical use. Despite these challenges, he remained optimistic, asserting that the opportunities presented by AI far outweigh the hurdles.

Consumer-facing applications and societal impact

Prof. Nikhil Malik of USC elaborated on AI’s role in enhancing consumer-facing applications across sectors such as finance, housing, healthcare, and education. He highlighted how AI can improve customer experiences, such as by enabling personalized predictions and facilitating digitized transactions in housing markets. However, he cautioned against unregulated AI deployment in sensitive sectors like healthcare and education, where ethical considerations and infrastructural barriers remain critical.

Using the example of sports analytics, Prof. Malik illustrated AI’s ability to generate novel insights from historical data, offering fresh perspectives and transforming how decisions are made. Nonetheless, he pointed to external barriers, including limited digitization, insufficient data, and the need for innovative financing mechanisms, as significant obstacles to expanding AI applications in underserved areas.

Predictive and generative AI in Indian industry

Prof. Rahul De' of IIMB offered a nuanced view of AI’s adoption within Indian industries, distinguishing between predictive classification AI and generative AI. He explained that predictive AI, which focuses on classification tasks such as quality control in manufacturing or image analysis in healthcare, remains dominant in India. Generative AI, while promising, is being adopted cautiously due to concerns about scalability and reliability.

He cited examples from Tata Steel and healthcare startups such as Niramai, which use AI for breast cancer imaging, to illustrate the transformative potential of predictive AI. Government initiatives also leverage analytics and AI for policy-making, although challenges persist in ensuring the accuracy and ethical use of these technologies. Prof. De’ highlighted the importance of human oversight in AI decision-making, referencing the evolving definitions of intelligence and the need to adapt to these shifts.

Session 2: Data governance & policy

The second session of the IIMB-USC Mini Conference on AI, Data, and Technology Policy delved into the challenges and opportunities surrounding data governance in India. Moderated by Prof. Jitamitra Desai from IIMB, the session brought together thought leaders from academia, industry, and public policy, each offering distinct perspectives on the governance frameworks needed to leverage data as a public good.

Challenges in fragmented data ecosystems

Gaurav Aggarwal, anchor-volunteer at iSPIRT Foundation, opened the discussion by highlighting iSPIRT’s pivotal role in developing the India Stack, a digital public goods ecosystem that underpins India’s rapid strides in digital infrastructure. He emphasized the fragmented nature of India’s data landscape, which is largely dominated by private data giants such as Google and Meta. Despite this fragmentation, Indian citizens often exhibit a high degree of trust in the country’s digital systems and data privacy frameworks, contrasting sharply with consumers in the West, who are more informed about their data rights but display scepticism toward digital governance systems.

Aggarwal underscored the urgent need for a comprehensive governance framework to ensure that India’s data, a critical national resource, is managed effectively and ethically. He stressed the importance of balancing innovation with consumer rights, advocating for systems that empower citizens while protecting their data privacy.

Data exchange technology and its applications

Dr. Jyotirmoy Dutta, Principal Scientist and Program Manager at the Centre of Data for Public Good (CDPG)—FSID, IISc, offered an insightful presentation on data exchange platforms and the associated governance challenges. He shared the centre’s work on the India Urban Data Exchange (IUDX) and the Agriculture Data Exchange (ADeX), technology stacks developed to facilitate seamless data sharing. These frameworks are rooted in principles such as interoperability, modularity, consent-based access, compliance, and privacy by design. Dr. Dutta contextualized such data exchange Platforms within the broader India Stack, demonstrating its applicability in solving real-world challenges. He provided examples, such as:
•Solid Waste Management Optimization: An application which uses real-time data on solid waste pickup vehicle positions, positions of the smart bins waste and other datasets to optimize the routes of these vehicles for efficient solid waste management.

•Green Corridors for Emergency Response: An application which uses the location data and the Adaptive Traffic controller Systems to create green corridors for ambulances shortening the response times for critical care.

He also spoke about how consent architectures within these systems allow the use of Personally Identifiable Information (PII) for applications such as Credit Assessment of farmers to help a quick disbursement of credit.
He emphasized that these use cases showcase how public and private sectors can collaborate in to create impactful solutions. However, he cautioned that such initiatives must be underpinned by robust governance frameworks to balance accessibility with accountability.

Localization and strategic autonomy in data governance

Mahashweta Ray, an IIMB alumna from the Business Analytics and Intelligence program, contributed a nuanced perspective on the complexities of data localization and governance. She highlighted the dual-edged nature of data localization: while it is essential for ensuring strategic autonomy and sovereignty, it can also pose challenges for businesses operating across geographies.

Drawing from practical examples, Ray outlined the need for clear delineations between the business use of data and the privacy rights of consumers. She stressed that consent mechanisms should be robust enough to empower citizens to decide what aspects of their data can be monetized. Further, she advocated for incorporating ‘privacy by design and ethics by design’ principles into AI products, suggesting that these elements should be explicitly outlined in governing frameworks to ensure accountability.

Ray concluded by calling for a techno-legal framework that balances innovation with ethical responsibility, ensuring that data governance supports both strategic objectives and citizen-centric outcomes.

Data governance in healthcare and cross-border collaboration

Speaking virtually from Geneva, Sameer Pujari, WHO’s AI Lead, provided a global perspective on data governance in healthcare, particularly in the context of India and the Global South. He emphasized the critical role of data localization in healthcare systems, citing examples from countries in the Global South where localized data governance models have significantly improved health outcomes.

Pujari argued that while localization is essential, it must be accompanied by contextualization. Countries replicating governance models from others must adapt them to local realities to ensure robust implementation and impact. He highlighted the concept of “cross-pollination” of data and knowledge at a global scale, advocating for international collaborations that allow data to flow across borders while maintaining safeguards.

The speaker also stressed the importance of country-level government collaborations to create governance models that respect sovereignty while enabling data sharing for public health and research purposes. He concluded by urging stakeholders to prioritize customization and inclusivity in their data governance frameworks, ensuring that they address the unique needs of their populations.

Session 3: Evolution in Indian technology policy

The third session of the IIMB-USC Mini Conference on AI, Data, and Technology Policy centred on the evolution of Indian technology policy and its critical intersections with governance, innovation, and citizen-centricity. The fireside chat featured panellists, Prof. S. Sadagopan, Prof. R. Srinivasan, and Prof. Shantanu Dutta, who shared their insights on the historical trajectory, current challenges, and future pathways for Indian technology policy.

Trajectory of Indian technology policy

Prof. Sadagopan opened the discussion by tracing the development of Indian technology policy from its nascent stages to its current pivotal role in transforming India’s digital landscape. He highlighted the intricate process of aligning legislation and policy across 17 ministries in the early days of India’s technology services industry. This foundational work, he argued, laid the groundwork for transformative initiatives such as the JAM trinity—comprising Jan Dhan (financial inclusion), Aadhaar (unique identification), and mobile penetration.

The JAM trinity, combined with direct benefit transfer (DBT) mechanisms and policies like UPI (Unified Payments Interface), marked a watershed moment in India’s digital evolution. By linking mobile phones and bank accounts, these initiatives not only revolutionized financial inclusion but also enabled the efficient and transparent transfer of subsidies and benefits.

Shifting focus to AI, Prof. Sadagopan noted that AI as a concept has been evolving since 1959, but its mainstream visibility surged with tools like ChatGPT, whose maturity and readiness captured global attention. However, he cautioned that the rapid pace of technological evolution necessitates a proactive approach to ethics and privacy, emphasizing the need for policies that integrate ‘privacy by design and ethics by design’.

On the topic of adapting global frameworks like the General Data Protection Regulation (GDPR) in India, Prof. Sadagopan critically argued against uncontextualized adoption. While GDPR serves as a valuable reference, he suggested that India has the potential to go beyond such frameworks, avoiding the constraints that could stifle innovation. He advocated for policies tailored to India’s unique challenges and opportunities, particularly in areas like agriculture, where satellite data is accessed without adequate consent mechanisms. He stressed the importance of financial literacy and transparency in ensuring equitable benefits from such technologies.

Prof. Sadagopan also shared his experience in the development of India’s first IT Act, emphasizing the importance of interdisciplinary collaboration between policymakers and legal experts.

Balancing regulation and innovation

Prof. R Srinivasan provided a complementary perspective, focusing on the need to strike a balance between regulation and innovation in technology policy. Drawing on the example of an Italian vendor constrained by GDPR, he illustrated how overly rigid frameworks can inadvertently hinder business and innovation. While acknowledging the importance of guidelines to protect privacy and data rights, he argued for more flexible and adaptive policies that cater to diverse economic and cultural contexts.

A strong proponent of leveraging non-personal data, Prof. Srinivasan called for a nuanced understanding of when and where to apply data models to maximize AI’s potential. He also highlighted the significance of India's recently enacted Digital Personal Data Protection (DPDP) Act. Praising its clarity and accessibility, he recommended the DPDP Act as a well-crafted piece of legislation that balances complexity with comprehensibility, making it accessible to stakeholders from diverse fields.

GDPR adaptation and India’s policy future

Prof. Shantanu Dutta facilitated the discussion with thought-provoking questions about the implications of GDPR adaptation in India. He encouraged the panellists to explore how India could navigate the challenges of aligning its technology policy with global standards while preserving its unique priorities. By prompting reflections on the role of AI, data protection, and citizen-centric approaches, Prof. Dutta helped frame the broader narrative of India’s evolving policy landscape.

Key Takeaways:

The IIMB-USC Mini Conference explored AI’s transformative potential and its challenges within India’s socio-economic and policy landscapes. Experts emphasized ethical and citizen-centric approaches, advocating for privacy by design and robust data governance frameworks tailored to India’s needs. Discussions highlighted the JAM Trinity, UPI, and India Stack as milestones in digital evolution, while addressing global regulatory frameworks like GDPR. The conference underscored leveraging non-personal data, enabling AI-driven innovation, and balancing regulation with flexibility to foster inclusive growth and ensure strategic autonomy in technology policy.