As DeepSeek AI Buzz Spreads Like Wildfire, Here Are The Legal Implications For India

OPINION: The Centre should take immediate action to regulate, make investments, promote education, collaboration, and protect IPRs in AI models.

DeepSeek presents both opportunities and threats to the Indian tech space.

Source : Alex Knight/Pexels

By Dinesh Jotwani

The dominance of US tech giants was questioned on Monday, as Chinese artificial intelligence (AI) startup DeepSeek sent shockwaves through Silicon Valley. Its new AI model, a rival to OpenAI's ChatGPT and Google's Gemini, is built entirely on open-source technology and lower-end chips. This approach allowed DeepSeek to sidestep the need for high-end hardware restricted by US export controls and develop the model for just $5.6 million.

As a result, DeepSeek is available at a cost that is just 2 per cent of what users would spend on OpenAI's o1 model.

India's Next Steps: Regulating Artificial Intelligence

DeepSeek presents both opportunities and threats to the Indian tech space. Indian startups can now create AI models at a fraction of the cost, eliminating the need for millions of dollars of investment in AI platforms and models. This allows them to compete globally, leveraging the cost advantage and utilising new, indigenously developed innovation models.  

However, this also calls for the Government of India to take immediate action to regulate, make investments, promote education, collaboration, and protect IPRs in AI models that are much needed for startups to grow globally. 

• Establish a regulatory framework: India should develop a comprehensive regulatory framework for AI that addresses data protection, privacy, and liability issues. This framework should be designed to promote innovation while also protecting consumers and businesses.
• Invest in AI research and development: India should invest in AI research and development to ensure it remains at the forefront of this rapidly evolving field. This investment should focus on developing both cutting-edge AI technologies and affordable AI solutions for businesses and consumers.
• Promote the adoption of AI: India should promote the adoption of AI across various sectors of the economy. This can be done through initiatives such as providing financial incentives for businesses that adopt AI, and developing educational programs to train workers in AI skills.
• Collaborate with other countries: India should collaborate with other countries on AI regulation and development. This collaboration can ensure that AI is used for the benefit of all humanity and that there is a level playing field for businesses operating in the global AI market.

The Ministry of Electronics and Information Technology has periodically released recommendations concerning regulating and promoting AI in India. However, these recommendations remain unimplemented, primarily due to insufficient Government investment in research and development.

A strong protection framework, referred to as the "Trade Secret Protection Bill," is also pending with the Government of India. This framework is necessary to safeguard AI Models. In fact, last year, the Law Commission of India released Report No. 289 on "Trade Secrets and Economic Espionage."

The Law Commission's involvement stemmed from Government discussions highlighting the need for legislation to protect Trade Secrets and address Economic Espionage. Subsequently, the Department of Legal Affairs and the Legislative Department explored the possibility of enacting separate Economic Espionage and Trade Secret Acts.

(The author is an Advocate, Supreme Court of India and Co-Managing Partner, Jotwani Associates)

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