‘Need a regulator like SEBI for AI’

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‘Need a regulator like SEBI for AI’

  • Recently, the PM's Economic Advisory Council (PMEAC) member announced that India is set to develop norms for regulating artificial intelligence (AI).
  • The AI regulator will function similarly to the financial regulator SEBI (Securities and Exchange Board of India).

Need for a Specialized Regulator

  • The conventional models of self-regulation and bureaucratic regulation are unsuitable for the AI space.
  • Proposed the creation of a specialized regulator with a deep understanding of AI technology and a focus on its evolving nature.

Regulatory Framework

  • Suggested implementing a system with manual overrides, comparable to financial market circuit breakers, for effective AI regulation.
  • Emphasized the importance of "skin in the game" and ex-ante accountability, drawing parallels with corporate boards.
  • Recommended enforcing regular audits and setting standards for explainability.
  • He highlighted the need for transparency in understanding AI behaviour.
  • He mentioned that the regulatory approaches used in finance could be applied to AI evolution.

Global Perspectives on AI Regulation

  • Acknowledged the growing consensus globally on the necessity of AI regulation.
  • He discussed different global approaches to AI regulation, citing
    • The US's self-regulation model
    • China's state-controlled model
    • Europe's top-down approach
  • He emphasized the need for India to develop a "good protocol" for AI regulation.

Prelims Takeaway

  • Artificial Intelligence
  • AI Regulator
  • SEBI