AI focus: legal accountability

Recalibrating Reasonableness: AI, the Standard of Care and the Future of Legal Accountability

The ‘reasonable person’ standard remains one of the most established and widely applied benchmarks in common law systems, including Indian law. It provides an objective measure of conduct across negligence, contract, criminal law, professional regulation and fiduciary duty. However, the standard rests on certain implicit assumptions related to human cognition – such as finite attention, bounded memory, limited processing capacity and qualified foresight – which the deployment of artificial intelligence (“AI”) materially alters.

AI systems challenge the traditional reasonable-person inquiry because they increasingly (i) operate at a speed and scale that no human actor can match, (ii) act with significant autonomy in the absence of contemporaneous human direction and (iii) involve decision-making processes that are probabilistic and difficult to explain. At the same time, such systems may lack context, common sense and the type of intuitive judgment that the law attributes to reasonable persons. In this regard, a functional analysis sensitive to actual capabilities, control, autonomy and consequence may be necessary.

This note addresses the implications of these developments for corporate governance, fiduciary duties, principal-agent relationships, contractual allocation of responsibility and liability exposure. It reviews emerging regulatory and litigation developments across the European Union, the United Kingdom, the United States and India, and identifies practical governance measures that organizations can consider while legal standards continue to evolve.


ANI v. OpenAI

ANI Media v. OpenAI: Reconciling Copyright Protection with AI Innovation

This note analyzes the Delhi High Court’s decision to dismiss the interim application filed by ANI Media Private Limited against OpenAI OPCO LLC on copyright infringement arising from both the training of large language models and their output generation.

The decision carries important implications for content owners (who should consider implementing technological barriers, strengthening contractual protections and entering into licensing arrangements with AI developers), AI developers (who should ensure training practices are structured around internal use and implement safeguards against verbatim reproduction) and companies deploying third-party AI tools (who should secure appropriate vendor representations and indemnification for IP-related claims). While the decision provides an indicative framework and a level of business certainty, it was rendered at the interim stage and is unlikely to be the final word, with several important issues awaiting determination at trial.


Model Risk Management

RBI’s Draft Guidance on Regulatory Principles for Model Risk Management

On June 24, 2026, the Reserve Bank of India (“RBI”) released its Draft Guidance on Regulatory Principles for Model Risk Management (“Draft Guidance”), which may reshape how financial institutions govern quantitative models, AI systems and algorithmic decision-making across the Indian financial sector.
This note examines certain key dimensions of the Draft Guidance, such as (i) its expansive definition of a ‘model’, (ii) the comprehensive governance architecture proposed, including board-level accountability, independent validation functions, and ‘kill-switch’ mechanisms, along with (iii) rigorous lifecycle management requirements spanning development through decommissioning. The framework applies to all eleven categories of RBI-regulated entities and extends to third-party and AI models, signaling an intent to close governance gaps that have widened as model adoption has accelerated.
The Draft Guidance introduces obligations around risk-based tiering, perpetual model inventories, enhanced documentation and consumer protection safeguards that will require significant operational investment. Its treatment of AI-specific risks – including explainability thresholds, bias mitigation, ‘red-teaming’ requirements and human oversight mandates – may position India closer to, and in some respects ahead of, regulatory expectations in mature jurisdictions such as the European Union, the United Kingdom and the United States.


Foreign Capital, Technology and Supply Chains

Globally, foreign investment is increasingly being evaluated through the lens of technological capability, national security, supply chain dynamics and strategic autonomy. In the current international environment, India seeks to balance openness to foreign capital with the development of domestic capabilities, reduction of strategic dependencies and managing economic engagements with other countries, including China.

As intangible assets increasingly influence enterprise value and competitive advantage in a volatile global economy, businesses have sought to incorporate technology governance, supply-chain resilience, geopolitical risk assessment and intellectual property protection, into investment, M&A and commercial decision-making.


Agentic AI

Agentic AI: Opportunities, Risks, and Evolving Legal Frameworks

The rise of ‘agentic’ AI marks a significant juncture in the evolution of digital technologies. Unlike earlier generations of AI, agentic systems exhibit a degree of operational independence that approximates human behavior, including other defining features – such as the ability to interface with and act upon external ecosystems, as well as to participate in complex environments comprising other such agents.

The primary regulatory concern stemming from widespread deployment arises from the enhanced decision-making authority of such systems while determining how objectives are achieved. As a result of such autonomy, foundational assumptions concerning control, causation, and responsibility may prove inadequate.

The question of liability presents further difficulty. Established doctrines in tort, contract, and criminal law rely on foreseeability, intent, and proximate causation. However, agentic AI may disrupt such foundations, giving rise to a responsibility gap, where no single actor exercises sufficient control to justify full legal attribution.

For companies, risk mitigation may need to be internally driven, especially in the absence of comprehensive regulation. This may begin with use-case classification and risk-tiering, ensuring that high-impact deployments receive enhanced scrutiny. Enterprise-level AI governance frameworks – incorporating legal, technical, and business perspectives – may also be necessary, along with continuous oversight through auditing and monitoring.

Keywords: (feel free to let me know if you have any other suggestions. The keywords given by me are not researched, they are just phrases I think may be relevant.)


Data center investments in India

Data Centers as a Critical Asset Class: Assessing Power, Cooling, Land-Use, Interconnectivity, and Financing Models

Data centers constitute a critical, distinct infrastructure asset class offering stable, long-term returns comparable to regulated utilities. Realizing scalable value requires legal structuring across five interdependent dimensions: reliable, high-capacity power; efficient cooling technologies; complex land-use entitlements; interconnectivity density; and specialized financing frameworks linked to performance and ESG compliance.


India's digital personal data protection regime

India’s Digital Personal Data Protection Regime Takes Effect

On November 13, 2025, the Government of India notified the Digital Personal Data Protection Rules, 2025 (“Rules”) under the Digital Personal Data Protection Act, 2023 (“DPDP Act”). These rules follow the draft Digital Personal Data Protection Rules, 2025, which were released for public consultation and comments in January 2025.
The provisions of the DPDP Act and the Rules will come into force in three phases – with phase 1 provisions (relating to constitution of the Data Protection Board of India and other procedural provisions) becoming effective from November 14, 2025; phase 2 provisions (relating to consent managers) becoming effective in November 2026; and phase 3 provisions (substantive provisions) becoming effective in May 2027.
The Rules provide clarity on various aspects of the DPDP Act, including on consent notices, notification requirements in case of a personal data breach, conditions for registration and obligations of Consent Managers, verifiable parental consent for processing children’s data, additional obligations of Significant Data Fiduciaries, new data retention requirements for all data fiduciaries, reasonable security safeguards, and cross-border data transfers.
This note provides an overview of the key provisions under the Rules. Organizations should plan ahead and prepare for compliance under the DPDP Act and Rules.


online gaming act

India’s New Online Gaming Law: Implications for the Gaming Ecosystem

The Promotion and Regulation of Online Gaming Act, 2025 (the “Online Gaming Act”) introduces a new regulatory framework for the gaming sector. The Online Gaming Act marks a significant shift in India’s approach to online gaming by recognizing and promoting e-sports and social games, while prohibiting all forms of real-money online games irrespective of whether they are skill- or chance-based. It extends in its application to both domestic and offshore operators targeting Indian users, as well as other participants in the gaming ecosystem such as financial intermediaries and advertisers.
The Online Gaming Act prescribes stringent penalties for non-compliance and establishes a central Gaming Authority with wide-ranging supervisory and enforcement powers.
This note analyzes the provisions of the Online Gaming Act, the regulatory and compliance risks for industry participants and its future implications.


AI framework in the Indian financial sector

A Framework for Using AI in the Indian Financial Sector

On August 13, 2025, a committee constituted by the Reserve Bank of India (“RBI”) released its report with respect to a proposed framework for the responsible and ethical enablement (FREE) of artificial intelligence (AI) models in the Indian financial sector (such report, “FREE AI Report”), pursuant to principles of transparency, responsibility, and ethical deployment. The proposed framework may require RBI-regulated entities, including banks, to undertake significant investments and operational changes, including with respect to new governance structures and capacity-building measures.
In general, the FREE AI Report provides an overview of potential compliance obligations which might be imposed on RBI-regulated entities through future AI-related regulation. In that regard, the report proposes a sector-specific approach based on amendments to existing regulations and new AI-specific rules. Accordingly, a principles-based framework has been recommended for developing new regulations to guide the development, deployment, and governance of AI. The report also recommends including AI regulation within the scope of certain existing RBI master directions, including on cybersecurity, digital lending, customer service, fraud detection, information technology (“IT”) governance, and outsourcing of IT services.
This note provides a broad overview of the FREE AI Report and discusses the ways in which RBI-regulated entities could act upon its recommendations, including for the purpose of preparing for future AI regulation. AI governance requirements may involve the design and implementation of measures and strategies to ensure that AI models deployed in the financial sector are safe, reliable, and trustworthy, including for enhancing customer confidence and trust, and facilitating greater integration of AI models in finance.
 


AI regulations in India

The Impact of India’s Data-Related Laws and Policies on AI Development and Deployment

The rise of Artificial Intelligence (“AI”) and Machine Learning (“ML”) promises both opportunities and risks. To address such risks while leveraging the power of AI/ML for new areas of growth, stakeholders need to remain attentive to an evolving regulatory landscape. Unlike the European Union, India is yet to enact an overarching law on AI. Nevertheless, AI developers, deployers, investors, and other relevant entities in the AI supply chain must stay informed about existing and emergent regulatory initiatives across several industries, sectors, and legal regimes. Given India’s ongoing policy and legislative attempts to govern AI, especially with respect to addressing deployment-related concerns and potential harm, the outcome of such processes is likely to emerge soon, even if in fragmented fashion.
Since AI model training relies heavily on data, India’s fast-developing data protection framework warrants special attention. Balancing compliance with innovation will remain crucial for organizations as they aim to thrive under India’s regulatory ecosystem on digital data and AI.