Govt clarifies generative AI's position under the IT Act in Lok Sabha

The government told Parliament that generative AI's classification as an 'intermediary' under the IT Act depends on its specific services and functions, not the technology itself. Minister Jitin Prasada made the clarification in the Lok Sabha.

The government on Wednesday informed Parliament that whether generative AI systems, including chatbot-based AI services, fall within the definition of an intermediary under the IT Act, will depend on the nature of the service it provides and the functions it performs.

Replying to a question in the Lok Sabha, Minister of State for Electronics and Information Technology Jitin Prasada said the Information Technology Act is a technology-neutral legislation, and its provisions apply to computer resources and intermediaries irrespective of the underlying technology, including AI.

AI Systems and Intermediary Status

"Whether a particular AI system or service falls within the definition of an 'intermediary' under section 2(1)(w) of the IT Act and is eligible for exemption from liability under section 79 of the Act depends upon the nature of the service provided, the functions performed by such system or service, and the applicable provisions of the IT Act and the rules made thereunder," the minister said in a written reply.

The clarification came in response to a query on whether generative AI systems, including chatbot-based AI services, fall within the definition of an intermediary under the IT Act and whether the government plans to issue separate guidelines distinguishing AI systems that merely facilitate access to third-party content from those that independently generate content.

Strengthened Due Diligence Obligations

The reply noted that the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026, notified on February 10 and brought into force on February 20, have strengthened due diligence obligations for intermediaries, particularly with respect to synthetically generated information, including deepfakes and AI-generated content.

Under the amended rules, intermediaries are required to deploy reasonable technical measures to prevent the creation and dissemination of unlawful AI-generated content, ensure clear labelling and traceable metadata for permissible AI-generated content, and strengthen user awareness regarding the legal consequences of sharing unlawful AI-generated material.

The government also highlighted that intermediaries are obligated to deploy automated tools or other suitable technical mechanisms to prevent users from creating, generating, modifying or disseminating synthetically generated information that violates any law.

Consequences of Non-Compliance

Further, the government said intermediaries failing to comply with the legal obligations prescribed under the IT Rules, 2021, would lose the exemption from liability available under Section 79 of the IT Act and would be liable for consequential action under applicable laws.

Broader Regulatory Framework for AI

On the broader regulatory framework for AI, the government said it has adopted a consultative approach and continues to engage stakeholders on legal, policy and institutional issues relating to emerging technologies. It added that any legislative or regulatory measures, if considered necessary, would be processed in accordance with the government's established legislative procedures. (ANI)

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