“The key to building trust in AI lies in accountability and transparency.” - Fei-Fei Li, Co-Director, Stanford Human-Centered AI Institute
Draft rules for AI content fail to protect consumers
AI is a strong too, to be deployed and used with abundant caution. The Indian government’s draft rules 2025 to regulate AI-generated online content have sparked more criticism than praise. While aimed at curbing synthetic misinformation, these rules overlook how AI is already being misused by consumer-facing companies. Wrong deployment leaves users frustrated with unhelpful bots and incomplete service responses.
Consumers at the receiving end
From malfunctioning appliances to bot-handled hotel bookings, AI tools are increasingly replacing human service without providing adequate solutions. Many firms deploy AI chatbots that can neither resolve issues nor escalate them properly, reflecting a rush to adopt AI without understanding its practical limits.
Corporate haste and regulatory gaps
Businesses often use AI as a buzzword for valuation gains rather than genuine innovation. Consultants encourage half-baked implementation, leading to customer dissatisfaction. The current draft rules focus only on content moderation and ignore broader consumer harms caused by careless AI integration.
The need for comprehensive consumer protection
India’s existing laws, including the Consumer Protection Act, 2019, lack the clarity to address liability when AI fails. For instance, if a faulty AI-driven service causes loss, accountability remains murky. There is an urgent need for omnibus legislation ensuring consumers can demand human assistance and fair grievance redressal.
Safeguarding the human interface
Without stronger oversight, companies may continue hiding behind AI errors while reducing human roles. Regulation should ensure AI supports consumers rather than isolating them from real help, restoring trust in technology-driven services.
Summary
India’s draft AI rules neglect consumer protection in service sectors, addressing only misinformation. Effective regulation must hold companies accountable for poor AI deployment and preserve the right to human interaction in grievance resolution.
Food for thought
Should consumers have the legal right to demand a human representative instead of an AI bot?
AI concept to learn: Generative AI
Generative AI refers to algorithms that create new content, text, images, or audio by learning from existing data. While powerful, its misuse can lead to misinformation, privacy breaches, or unfair automation, making regulation and ethical safeguards essential.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
COMMENTS