The Internet and Mobile Association of India (IAMAI) has raised concerns about the practical implications of the Digital Personal Data Protection Act (DPDP Act), particularly regarding the use of publicly available personal data by AI firms. In a submission to the ministry of electronics and information technology (Meity), IAMAI has flagged ambiguities in the law that it says could significantly hamper AI development in the country.
The Disproportionate Impact on Startups and Small Players
IAMAI has warned that imposing limitations on the processing of personal data that is already in the public domain may lead to unnecessary compliance pressures for companies working in artificial intelligence. Such restrictions, it has said, could slow innovation and stall the broader advancement of AI technologies in the country.
“Even where personal data is shared publicly to comply with a legal obligation, it may be re-shared or resurface online through various means well after the initial legal disclosure, making it difficult for AI companies to process such data,” the industry bodysaid in a statement issued on Thursday.
IAMAI further highlighted that the brunt of these restrictions would likely fall on smaller players and startups in the AI space, who lack the legal and financial resources to navigate complex compliance frameworks.
Proposed Solutions for a Clearer Path Forward
To address these concerns, IAMAI has urged the government to revisit the provisions of the DPDP Act and remove barriers that prevent the use of publicly available data for AI model training or fine-tuning. As an interim relief, it has suggested that the government should consider exempting data fiduciaries from the Act’s requirements in cases where personal data is being used solely for the development of AI models.
According to IAMAI, such measures would offer much-needed clarity and flexibility, while supporting the responsible and effective growth of AI in the country.