National AI Technology Regulatory Authority Bill 2024

REGULATORY UPDATE: THE NATIONAL ARTIFICIAL INTELLIGENCE TECHNOLOGY REGULATORY AUTHORITY BILL 2024

Authored by: Mr Bhushan Shah, Partner and Mr Divyang Salvi, Associate

The National Artificial Intelligence Technology Regulatory Authority Bill, 2024 (Bill), proposes the establishment of the National Artificial Intelligence Technology Regulatory Authority (NAITRA) as India’s central AI regulator to oversee ethical AI deployment, address risks like deepfakes and algorithmic bias, and ensure compliance. While it marks a significant legislative step, the Bill’s effectiveness will depend on timely implementation, clarity in rule-making, and adaptability to AI’s evolving challenges.

Introduction

The National Artificial Intelligence Technology Regulatory Authority Bill, 2024, introduced in the Rajya Sabha on 26 July 2024, proposes the establishment of the NAITRA. NAITRA is aimed at regulating, monitoring, and overseeing the deployment of Artificial Intelligence (AI) and related technologies across India. The Bill is a response to the growing concerns surrounding AI advancements, including the proliferation of deepfakes, privacy violations, algorithmic bias, and the impact of AI on employment. Recognizing that existing guidelines are advisory and not legally binding, the Bill seeks to provide a statutory framework to govern AI technologies ethically without hampering innovation.

Key Provisions of the Bill

Constitution

The Bill mandates the establishment of the NAITRA by the Central Government through official notification. Headquartered in New Delhi, NAITRA may set up regional offices. It will comprise a Chairperson and two Members with expertise in AI governance, machine learning, ethics, and IT policy, each serving a term not exceeding four years. NAITRA will serve as the apex body for regulating AI deployment, ensuring adherence to principles of safety, ethics, transparency, accountability, and fairness.

Functions and Powers

NAITRA will formulate national AI policies, develop regulatory frameworks to address privacy risks, algorithmic biases, and employment impacts, and prohibit high-risk AI applications such as deepfakes. It will act as a grievance redressal body for AI-induced rights violations and is vested with Civil Court-like powers for inquiries, including summoning witnesses, collecting evidence, and adjudicating complaints.

Consultation and Oversight Mechanism

The Bill mandates that Central and State Governments consult NAITRA on AI-related policy matters. The Central Government will provide requisite funding, while NAITRA must maintain audited accounts and submit annual reports to Parliament. NAITRA’s decisions will override any inconsistent provisions in existing laws. Additionally, the Central Government is empowered to frame rules to implement the Bill.

Statement of Objects and Reasons

The Statement of Objects and Reasons underscores the need for a statutory authority to regulate AI in India, as existing policy guidelines lack legal enforceability. With rising risks from deepfakes, misinformation, job losses, and privacy breaches, the Bill seeks to establish a dedicated authority to oversee AI regulation, ensure compliance, and promote responsible innovation. Moreover, it also aligns with international standards.

MHCO Comment

The National AI Technology Regulatory Authority Bill, 2024, represents India's first comprehensive attempt to establish a statutory framework for AI governance. By vesting NAITRA with regulatory, monitoring, and quasi-judicial powers, the Bill aims to ensure that AI is deployed responsibly, transparently, and ethically across sectors. Its success will, however, depend on how effectively NAITRA is structured, resourced, and empowered to respond to the dynamic challenges posed by AI technologies. The Bill, however, lacks a clear timeline for NAITRA’s establishment and unspecified financial allocations. Its success will hinge on timely implementation, clear rule-making, and adaptability to AI’s rapid advancements.

This update was released on 06 Aug 2025.

The views expressed in this update are personal and should not be construed as any legal advice. Please contact us directly on +91 22 40565252 or legalupdates@mhcolaw.com for any assistance.

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