Artificial Intelligence Regulations: What industry wants
The rapid adoption of AI requires the development of Responsible AI systems—those that ensure security, respect privacy, and operate transparently, say experts
While Artificial Intelligence has become a favourite term of industries across the board and across the world, with it comes another term that doesn’t enjoy as much enthusiasm: regulation. The Indian government, as many of its counterparts in other countries, has a mind to maintain an equilibrium between the two; whether happy or not depends entirely on its beholder.
Given that the evolution of AI, and its currently favoured offspring Generative AI, is unfolding before our eyes, we can expect there to be a significant buffering delay as governmental bureaucracy tries to keep pace with breakneck technological development and market forces. We can expect the regulations to take a while to be formulated and then actually put into practice. exchange4media asked stakeholders across the advertising and marketing sphere what they would like to see in AI regulations in India, when they finally are logged in.
What’s What
Preetham Venkky, Chief Digital Officer at DDB Mudra Group, stresses the importance of clear AI regulations for the advertising industry. “Any kind of regulation for something new in technology, especially with clarity, is always welcome because it allows us to know where we can operate and how we can do it,” he says.
Venkky points out that a lack of clarity around critical issues such as copyrights and liability creates significant uncertainty. “If a tool has been trained on proprietary data—whether from publicly available sources or not—who holds the legal responsibility? Is it the platform that built the tool, the agency, or the brand or advertiser? That structural clarity is very important.”
Vaibhav Velhankar, Chief Technology Officer at Segumento, cites a McKinsey report suggesting that AI could add up to $4 trillion in global productivity, saying, “India as a market is well-positioned to benefit from these advancements and play a key role in creating solutions for large-scale challenges," he notes.
However, Velhankar says that the rapid adoption of AI requires the development of Responsible AI systems—those that ensure security, respect privacy, and operate transparently. “The Indian government's Mission AI program is working on guidelines to ensure ethical AI development and drive responsible, inclusive growth of India’s AI ecosystem,” he adds.
The global AI in marketing market, valued at approximately USD 12.64 billion in 2023, is projected to grow at a CAGR of 26.6% until 2030, reaching USD 72.1 billion. This growth is fuelled by increased venture capital investments in AI startups and significant investments from tech giants like Google, Facebook, and Amazon. AI-powered marketing campaigns offer higher ROI and improved efficiency, leading to increased revenue for businesses.
Who’s Who
Shan Jain, an independent brand strategist and marketing transformation advisor, highlights that AI's rise presents challenges in maintaining authenticity. She notes that AI models trained on biased or unreliable data could blur the line between fact and fiction, potentially amplifying misinformation. “AI could flood the web with manipulated data, shifting public opinion overnight,” she says, stressing the need for robust regulations to preserve trust in AI-generated content.
Venkky echoes Jain’s sentiments, noting that regulations need to clarify the boundaries between human and machine inspiration. “We don't know where human inspiration stops and machine inspiration starts,” he explains. He also cautioned against over-regulating AI tools, emphasizing that excessive restrictions could stifle innovation, similar to how India’s ban on TikTok limited opportunities for marketers. “An absolute ban or excessive friction on AI utilization would, in many ways, send us backward,” Venkky warns.
Suchana Sarkar, Chief Brand Officer at Makani Creatives, emphasizes that before diving into regulations, it's crucial to understand AI’s use cases, noting that AI has been a part of our lives for years, through technologies like search engines, recommendation systems, and virtual assistants. She believes the recent public interest in AI was sparked by the rise of Generative AI tools like ChatGPT.
She notes that while these tools can produce content quickly, they have raised concerns among creative agencies and brands regarding the legal implications of using AI-generated materials, highlighting global concerns around privacy breaches, bias, plagiarism, and misinformation, particularly with the rise of Deepfakes.
“Deepfakes, which have been around since at least 2017, have become nearly indistinguishable to the human eye, raising significant ethical and legal concerns,” Sarkar says, citing the example of a Deepfake video featuring actor Rashmika Mandana, which triggered government intervention.
Another significant concern for Venkky is the protection of minors. “As a father, I'm deeply concerned about the space of fantasy we've gotten into,” he said. He believes that safeguarding the identity and safety of minors, both in the real world and virtual environments, should be a non-negotiable part of AI regulations, enforced with the strictest penalties.
All industry experts underscore the need for AI regulations that prevent harm without stifling innovation. Venkky concludes by stressing the importance of ethical AI development, particularly when it comes to the use of personal data. “It's crucial to be transparent about how data is sourced, whether it’s public or private information, and whether it was obtained with proper permissions,” he says.
While AI holds enormous potential to transform industries, including marketing and sales, it also brings with it a host of challenges that require clear and thoughtful regulation. As experts have illustrated above, the key to unlocking AI's full potential lies in fostering Responsible AI. This means creating frameworks that prioritize clarity around legal liability, intellectual property rights, and data privacy, while addressing concerns around consumer protection, biases, misinformation, and Deepfakes.
