Historic AI Legislation Debate in Parliament
On December 17, 2025, the Indian Parliament began debating the Artificial Intelligence (Ethics and Accountability) Bill, 2025—a Private Member's Bill proposing the establishment of an AI Ethics Committee to oversee artificial intelligence deployment in the country.
While the bill is unlikely to become law immediately as a Private Member's Bill, it signals growing legislative attention to AI governance and could influence future government legislation.
Key Provisions of the Bill
Proposed AI Ethics Committee
| Aspect | Proposal |
|---|---|
| Name | National AI Ethics Committee (NAIEC) |
| Composition | 15 members |
| Reporting | Ministry of Electronics and IT |
| Powers | Advisory, with recommendation authority |
| Tenure | 3-year terms |
Committee Composition
The proposed committee would include:
- Chairperson: Eminent AI researcher
- Government Representatives: MeitY, NITI Aayog, Data Protection Board
- Industry Members: 3 representatives from tech sector
- Civil Society: 3 representatives from NGOs and advocacy groups
- Legal Experts: 2 members with technology law expertise
- Academics: 3 AI/ethics researchers
Proposed Powers and Functions
Advisory Functions
- Recommend ethical guidelines for AI development
- Assess societal impact of AI systems
- Advise on cross-border AI issues
Review Functions
- Review high-risk AI deployments
- Investigate AI-related complaints
- Audit AI systems for bias
Reporting Functions
- Annual state of AI ethics report
- Incident reports on AI failures
- International best practices analysis
High-Risk AI Categories
The bill proposes categories of AI requiring enhanced oversight:
Category A: Critical (Mandatory Review)
- Autonomous weapons systems
- Criminal justice AI (sentencing, parole)
- Critical infrastructure control
- Organ allocation algorithms
Category B: High-Risk (Registration Required)
- Healthcare diagnostics
- Financial credit scoring
- Employment screening
- Educational assessment
Category C: Medium-Risk (Guidelines Apply)
- Content recommendation systems
- Customer service AI
- Marketing personalization
- Price optimization
Parliamentary Debate Highlights
Supporters' Arguments
"As AI pervades every aspect of life, we need institutional mechanisms to ensure it serves citizens rather than controlling them." — MP introducing the bill
Key supporting points:
- Need for proactive governance before issues arise
- International competitiveness through ethical AI leadership
- Protection of fundamental rights
- Building public trust in AI
Opposition Concerns
"Another regulatory body will slow down innovation. Let the market and existing laws work." — Opposition MP
Key concerns raised:
- Duplication with existing regulators
- Potential for regulatory capture
- Impact on AI investment
- Global competitiveness impact
Government Response
The Minister of State for IT provided the government's position:
"The government has already released comprehensive AI Governance Guidelines in November. We believe the current framework is sufficient, but we will study this bill's provisions."
Government's Current Approach
The government's preference for non-legislative instruments:
- AI Governance Guidelines (Nov 2025)
- Existing Laws: IT Act, DPDPA, Consumer Protection Act
- Industry Self-Regulation: Encouraged through industry bodies
- Sector-Specific: RBI, SEBI, IRDAI guidance for their domains
Industry Reaction
NASSCOM Position
"We support responsible AI but caution against prescriptive regulations that could hamper innovation. The existing guidelines strike the right balance."
Startup Concerns
- Compliance burden for early-stage companies
- Uncertainty affecting investment
- Potential for regulatory delays
Civil Society Support
- Consumer advocacy groups support the bill
- Digital rights organizations praise accountability provisions
- Labor unions concerned about AI workforce impact
International Context
The bill positions India in the global AI governance landscape:
| Jurisdiction | Approach |
|---|---|
| EU | AI Act - Comprehensive legislation |
| US | Sector-specific, executive orders |
| UK | Pro-innovation, voluntary frameworks |
| China | Government-controlled, mandatory standards |
| India | Guidelines + existing laws (current) |
What Happens Next
Bill Proceedings
- Introduction: December 17, 2025 ✓
- First Reading: Pending
- Committee Referral: If approved
- Committee Report: 90 days typically
- Second Reading: Debate and amendments
- Voting: Requires majority
Realistic Outlook
Private Member's Bills rarely become law, but can:
- Shape public discourse
- Influence government legislation
- Signal legislative priorities
- Create pressure for action
Implications for AI Firms
Regardless of the bill's fate, AI companies should:
- Document AI Ethics: Maintain records of ethical considerations
- Bias Testing: Proactive testing and mitigation
- Transparency: Clear communication about AI use
- Human Oversight: Maintain human-in-the-loop for critical decisions
Looking Ahead
The AI Ethics Bill 2025, while unlikely to pass in its current form, marks an important milestone in India's AI governance journey. It signals that legislators are paying attention to AI's societal implications and sets the stage for future, potentially more consequential, legislation.
"Whether or not this bill passes, the conversation it starts is vital for India's AI future."
