Bill in Parliament Proposes Penalties of Up to ₹5 Crore for Misuse of AI Systems

Bill in Parliament Proposes Penalties of Up to ₹5 Crore for Misuse of AI Systems

A new bill introduced in Parliament seeks to impose significant penalties on individuals and organizations that misuse artificial intelligence systems. The proposed legislation outlines fines of up to ₹5 crore as a deterrent against harmful or irresponsible uses of AI, emphasizing the need to protect public safety, privacy, and ethical standards as these technologies become more widespread.

The draft bill categorizes various forms of misuse, including deploying AI in ways that violate privacy laws, facilitate discrimination, spread misinformation, or compromise critical infrastructure. Lawmakers argue that without clear legal consequences, bad actors would have little incentive to adhere to responsible AI practices, potentially exposing citizens and institutions to serious harm. The penalty structure is designed to be proportionate to the severity and impact of the misuse.

Supporters of the proposal say it will help establish trust in AI technologies by holding developers, deployers, and users accountable for abuses. They see robust enforcement measures as essential to encourage innovation while safeguarding societal values. The discussion around the bill also reflects broader concerns about balancing technological progress with regulatory oversight in an era of rapid AI adoption.

Critics of the bill, however, caution that overly stringent penalties could stifle innovation or create uncertainty for startups and researchers. They suggest that clear guidelines, compliance frameworks, and support for ethical AI development should accompany punitive measures to ensure that the legal environment fosters both responsibility and growth in India’s burgeoning AI ecosystem.

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