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ARTICLE · 09 SEPTEMBER 2025

AI On Trial: Rethinking Liability In India's Current Legal Framework

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Artificial Intelligence is no longer a futuristic concept in India. It is rapidly transforming healthcare, financial services, education, and governance, and has become embedded in the everyday lives of people

IndiaTechnology
Shraddhar Korekar
Shraddhar Korekar
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Introduction

Artificial Intelligence is no longer a futuristic concept in India. It is rapidly transforming healthcare, financial services, education, and governance, and has become embedded in the everyday lives of people. However, such mainstream adoption also brings with it a pressing legal dilemma to decide as to who should be held accountable when AI systems malfunction or cause irreparable harm? Unlike traditional technologies, AI systems are characterized by autonomous decision making, which often makes it difficult to pinpoint liability in case of any damage.

While India has existing legal frameworks such as the Digital Personal Data Protection (DPDP) Act, 2023, the Information Technology Act, 2000, and the Consumer Protection Act, 2019, these instruments only provide partial safeguards and are not designed to address the unique challenges posed by AI. Recognising these gaps, the Government of India has recently launched the IndiaAI Mission and announced

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