Introduction
India has witnessed rapid growth in the development and use of artificial intelligence across sectors such as finance, healthcare, governance, and digital services. As AI technologies expand, concerns about algorithmic bias, privacy risks, and lack of accountability have also increased. To address these issues, a legislative proposal titled the Artificial Intelligence (Ethics and Accountability) Bill, 2025 was introduced in December 2025.
The bill was introduced as a Private Member’s Bill by the government. The proposal aims to create a structured legal framework for ethical and accountable use of artificial intelligence in India. As of March 2026, the bill remains a legislative proposal and has not yet been enacted into law.
What Is the Objective of the Artificial Intelligence Accountability Bill?
The proposed legislation seeks to establish ethical standards and regulatory oversight for artificial intelligence systems used in India. The bill adopts a risk-based regulatory model that categorizes AI systems based on their potential impact on individuals and society.
Under this approach, high-risk AI applications, particularly those used in areas such as surveillance, law enforcement, employment decisions, and credit evaluation, may face stricter regulatory scrutiny. The framework also aims to prevent discriminatory outcomes produced by automated systems.
The bill further aligns AI governance with constitutional guarantees of equality and non-discrimination under Constitution of India, particularly Articles 14, 15, and 16.
How Does the Bill Propose to Regulate Artificial Intelligence?
The legislation proposes the creation of a statutory oversight body known as the Ethics Committee for Artificial Intelligence. This committee would include experts from multiple fields such as technology, law, data science, academia, civil society, industry, and human rights.
The committee would perform several regulatory functions including issuing ethical guidelines for AI deployment, monitoring compliance by developers and organizations, investigating allegations of misuse or algorithmic bias, and recommending enforcement actions.
In cases involving high-risk AI technologies, particularly those used for surveillance or decision-making affecting fundamental rights, the bill proposes that prior approval from the committee may be required before deployment.
What Responsibilities Would AI Developers Have?
The bill places several accountability obligations on developers and organizations that design or deploy artificial intelligence systems. Developers would be required to provide clear disclosures about the purpose, functionality, and limitations of their AI systems.
Transparency obligations would also extend to explaining the type of training data used and the logic behind automated decision-making processes. These disclosures aim to reduce reliance on opaque “black box” algorithms that operate without public scrutiny.
The proposed law also requires periodic bias audits of AI systems. Developers may need to ensure that datasets used to train AI models represent diverse populations and do not generate discriminatory outcomes. If a system demonstrates significant bias or harmful effects, the bill envisages withdrawal or modification of that system.
What Penalties Does the Bill Propose for AI Misuse?
The proposed legislation includes financial and regulatory penalties for violations of its provisions. Organizations that fail to comply with ethical guidelines or transparency obligations may face fines of up to ₹5 crore depending on the severity of the violation.
The bill also provides for administrative measures such as suspension or revocation of licenses for AI deployment in serious cases. Repeat violations or intentional misuse of artificial intelligence technologies may also lead to criminal liability under the proposed framework.
Individuals affected by algorithmic discrimination, privacy violations, or misuse of AI systems may file complaints before the proposed Ethics Committee, which would examine the allegations and recommend corrective action.
What Is the Current Status of the Bill?
The Artificial Intelligence (Ethics and Accountability) Bill, 2025 currently remains a Private Member’s Bill introduced in the Indian Parliament. Such bills typically require parliamentary debate, committee examination, and legislative approval before becoming law.
Although the bill has not yet been enacted, it reflects growing policy discussions in India regarding responsible AI governance. Regulators and policymakers increasingly recognize the need for legal frameworks that balance technological innovation with safeguards against discrimination, data misuse, and algorithmic harm.
Conclusion
Artificial intelligence now influences critical decisions in finance, healthcare, employment, and public administration. Without adequate regulatory safeguards, automated systems may reinforce biases or operate without transparency and accountability.
The proposed bill represents one of the early legislative attempts in India to introduce structured oversight of AI technologies. By focusing on transparency, ethical standards, and developer accountability, the framework aims to ensure that artificial intelligence operates in a manner consistent with constitutional values and public interest.
