India's AI sector needs innovation, not regulation: Arundhati Bhattacharya

Salesforce South Asia chief Arundhati Bhattacharya said India's artificial intelligence sector is still evolving and needs innovation and self-regulation, not premature laws

Government regulation of the rapidly evolving artificial intelligence (AI) sector is currently unwarranted, and companies should focus on self-regulation to demonstrate responsibility, said Arundhati Bhattacharya, chairperson and chief executive officer (CEO) of Salesforce South Asia, on Tuesday.

 

Asked whether the time had come for India to have separate legislation for AI, Bhattacharya, also a former chairperson of the State Bank of India (SBI), said it was too early for regulation, which could be introduced later if required.

 

"I would like to see far more self-regulation because that would show companies that they really understand how they are impacting the common man. And it is important because this is an area where a lot of innovation is going on," she was quoted as saying by PTI.

 

 

What approach does she recommend for India’s AI development?

She added that aligning with the approach of most other countries was essential at this stage and that, for now, the government was on the right track. Open competition, she said, would drive more innovation.

 

A competitive market drives better offerings for customers, she noted, adding, “I also think that competition enables the best of what is out there to come into the country.”

 

What is the government’s stance on AI regulation?

Last week, in line with Bhattacharya’s view, the Ministry of Electronics and Information Technology (MeitY) Secretary S Krishnan said the Centre’s primary focus was to ensure continued innovation in the AI space. Regulation or legislation, he said, would remain light-touch and introduced only when the need arises.

 

The statement comes as India witnesses a surge in AI users, making it one of the most attractive markets for global tech firms. Major players, including ChatGPT maker OpenAI, Google (Gemini), and Perplexity, have already announced free plans for Indian users to expand their presence in the market.

 

How is AI increasing digital fraud risks in India?

However, Bhattacharya cautioned that the rise of AI has opened new avenues for digital fraud, making it easier for scammers and criminals to exploit the technology. She urged people to stay vigilant at all times.

 

“Now, they can replicate a person’s voice and face. But if they are asking you to suddenly remit so many thousands of rupees out, which is not what you would normally do, it is up to the person who is getting the call to have their antenna up. To say that I must check before I take a big step,” she said.

 

She referred to banking customers as the “weakest link” in the chain, reiterating that they should cross-check thoroughly and keep their “disbelief radar” on at all times.

 

“You can always end a call and call back to determine where a call came from. We need to understand that being naive in this day and age is not going to help,” she told PTI.