India needs to take a unique approach to Gen AI regulation, says Trilegal Whitepaper

New framework proposes liability reform, IP laws modernisation, and sector-specific guidance to foster inclusive innovation

Mumbai, 13 June 2025 – Trilegal, a leading full-service law firm, today released a comprehensive white paper titled “Approach Paper on Regulation of Gen AI in India”. The paper calls for a unique homegrown regulatory framework that champions inclusive innovation over restrictive safety measures adopted by developed nations. The paper prepared by the Technology Media and Telecommunications team of Trilegal argues that India needs a regulatory model tailored to its unique socio-economic landscape to foster the transformative potential of Generative AI (Gen AI) while managing emerging risks.

The white paper advocates for India to reject the one-size-fits-all approach of the EU and instead create a regulation that aligns with the country’s developmental goals. Unlike developed nations, which can afford to prioritise safety measures at the expense of innovation, India’s emphasis should be on leveraging Gen AI to bridge socio-economic gaps, fostering inclusive growth across sectors like healthcare, education, and financial inclusion.

Core Recommendations

The paper outlines a flexible regulatory model that enables Gen AI growth while addressing its risks. It rejects overly prescriptive, omnibus regulations favouring adaptive, sector-specific guidance. The proposed graduated liability framework accounts for the non-deterministic nature of Gen AI, introducing mechanisms for notice-and-remediation and providing safe harbour protections unless negligence is proven. Liability is proposed to be strict only for extreme harms, including Chemical, Biological, Radiological, and Nuclear (CBRN) content, child sexual abuse material (CSAM), and non-consensual intimate images (NCII).

Nikhil Narendran, Partner – Technology, Media & Telecommunications Practice at Trilegal, emphasised, “India is at a defining crossroads. The decisions we make today about AI will shape our economic and social future for generations. We have a real opportunity to ensure this technology drives inclusive growth, grounded in equity, transparency, and trust. What’s needed now is thoughtful leadership, collaborative policymaking, and a commitment to innovation that works for everyone. Our white paper charts a path that enables India to harness AI’s transformative potential while maintaining appropriate safeguards”.

Legislative Changes

The paper also suggests several legislative amendments to support Gen AI innovation. Key recommendations include introducing explicit Text and Data Mining (TDM) exemptions in the Copyright Act, expanding exemptions in the Digital Personal Data Protection Act for AI training, and removing legal barriers that could stifle innovation.

Leveraging Existing Laws

Trilegal’s white paper demonstrates how India’s current legal framework can address many AI-related harms without requiring new laws. Existing laws, such as the IT Act, the Bharatiya Nyaya Sanhita, and the Consumer Protection Act, can effectively manage AI-related risks like impersonation, misleading advertisements, and election interference. The paper calls for training regulators to apply these laws effectively to emerging AI issues.

Global Comparative Analysis

The white paper contrasts India’s proposed regulatory model with global approaches. Unlike the EU’s strict AI Act, and US’s shifting stance under different administrations, India’s approach is designed to remain nimble and adaptable. Trilegal advocates for flexible regulation, balancing risk mitigation with the immense potential benefits of AI.

Managing Emerging Risks

To tackle future risks, the paper recommends empowering the IndiaAI Safety Institute to collaborate with global AI safety networks for early risk detection. It also proposes exploring revenue-sharing frameworks for intellectual property concerns and addressing new harms like style mimicry and IP dilution.

Implementation Strategy

Trilegal’s proposal emphasizes adaptive governance. Rather than creating new, rigid laws, India should focus on empowering regulators with the tools and knowledge needed to apply existing laws to Gen AI-related scenarios. The firm suggests starting with sector-specific guidance and using subordinate legislation before enacting primary laws.

Policy Call to Action

The white paper urges policymakers to evaluate whether existing laws can address Gen AI risks, introduce enabling provisions in copyright and data protection laws, and establish notice-based safe harbours for AI developers. The focus should be on genuinely mitigating risks rather than imposing constraints on innovation.

The comprehensive white paper is a blueprint for India’s AI regulatory future. Trilegal stresses that India’s unique socio-economic context requires a regulatory approach that maximizes developmental benefits while maintaining vigilance about emerging risks and dynamic harm mitigation.

About Trilegal

Trilegal is a leading full-service law firm in India with over 25 years of experience, trusted for its in-depth expertise and client-centric approach. The firm advises a diverse set of clients, including Fortune 500 companies, global investment funds, major Indian conglomerates, domestic and international banks, technology and media giants, family offices, and high-net-worth individuals. With more than 140 partners operating under a distinctive lockstep model, Trilegal is the largest equity partnership in the country. The firm retains over 1,100 professionals across Mumbai, Delhi, Bengaluru, and Gurugram offices.

Trilegal has consistently been recognised among India’s top-tier firms in leading legal directories such as Chambers & Partners (Asia Pacific and Global), Legal 500 Asia Pacific, and Benchmark Litigation. It has also earned several prestigious accolades, including being named Best Overall Law Firm by India Business Law Journal (IBLJ) 2025, Innovative Lawyers in Disputes & Crisis Management by the Financial Times (FT) Innovative Lawyers Asia-Pacific Awards in 2025, M&A Firm of the Year by IFLR Asia-Pacific in 2024, Law Firm of the Year by Deal Volume at the VCCircle Awards in 2024, India Deal Firm of the Year at the Asian Legal Business (ALB) India Law Awards in 2023, and Best Law Firm to Work by Vahura in 2022.

For more information, please get in touch with Prakruti Jani | Mob: +91-9867868976 | BD@trilegal.com

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