The Artificial Intelligence (Ethics and Accountability) Bill, 2025 was introduced in the Lok Sabha by Smt. Bharti Pardhi, MP. The proposed legislation seeks to establish a comprehensive ethical, transparency, and accountability framework governing AI systems used in decision-making, surveillance, and algorithmic applications across sectors.
Why AI Accountability Bill Matters?
With AI increasingly influencing areas such as law enforcement, financial credit assessment, employment screening, and surveillance, concerns around algorithmic bias, opaque decision-making, misuse of data, and unchecked surveillancehave grown sharply. The Bill responds to these concerns by proposing institutional oversight, enforceable standards, and strong penalties to ensure that AI technologies serve democratic values rather than undermine them.
Key Features of the AI (Ethics and Accountability) Bill, 2025
1. Statutory Ethics Committee for AI
At the heart of the Bill is the creation of a central Ethics Committee for Artificial Intelligence, to be constituted by the Central Government. The Committee will include:
- A Chairperson with expertise in ethics and technology
- Representatives from academia, industry, civil society, and government
- Experts in law, data science, and human rights
The Committee will be supported by officers and staff appointed by the government, with funding provided through parliamentary grants
2. Powers and Functions of the Committee
The Ethics Committee will:
- Develop and recommend ethical guidelines for AI systems
- Monitor compliance with ethical standards
- Review cases of misuse, algorithmic bias, or violations
- Promote awareness and capacity-building among stakeholders
- Perform any additional functions prescribed by the Central Government
This institutional mechanism positions ethics oversight as a continuous regulatory function, rather than a one-time compliance exercise.
Regulation of Surveillance and High-Risk AI Use
3. Restrictions on AI-Based Surveillance
The Bill places explicit restrictions on AI use in surveillance, stating that such deployment must:
- Be for lawful purposes only
- Receive prior approval from the Ethics Committee
This provision is particularly significant in the Indian context, where concerns over mass surveillance and facial recognition systems have been repeatedly raised by civil society and courts.
4. Safeguards in Critical Decision-Making
AI systems used in law enforcement, financial credit, and employment decisions must:
- Not discriminate on grounds of race, religion, gender, or similar factors
- Undergo stringent ethical review by the Committee
This clause directly targets automated decision-making systems that affect livelihoods, liberty, and access to finance.
Obligations Imposed on AI Developers
5. Mandatory Transparency Requirements
Developers are required to disclose:
- The intended purpose and limitations of AI systems
- Data sources and methodologies used for training
- Reasons for AI-driven decisions that impact individuals
This moves India closer to the global push for “explainable AI”, where affected persons have a right to understand automated outcomes.
6. Addressing Algorithmic Bias
Developers must:
- Conduct regular audits to detect bias
- Ensure diversity and inclusivity in training datasets
- Withdraw AI systems exhibiting significant bias until corrected
Additionally, developers must maintain detailed compliance records, making ethical governance auditable rather than aspirational.
Grievance Redressal and Penalties
7. Complaint Mechanism for Affected Individuals
Any individual or group harmed by AI misuse can file a complaint before the Ethics Committee. The Committee is empowered to investigate and recommend:
- Penalties
- Corrective measures
- Other remedial actions as prescribed
This provision introduces user-centric accountability, allowing real-world harms to be formally addressed.
8. Stringent Penalties for Violations
Violations of the Act may attract:
- Fines up to ₹5 crore, depending on severity
- Suspension or revocation of AI deployment licences
- Criminal liability for repeat offenders, as prescribed
The scale of penalties signals the government’s intent to treat AI ethics violations as serious regulatory breaches rather than mere technical lapses.
Financial and Legislative Implications
The Financial Memorandum estimates:
- ₹500 crore recurring annual expenditure
- ₹100 crore non-recurring expenditure
These funds will support the Ethics Committee’s functioning and oversight mechanisms, underscoring the government’s commitment to institutional enforcement rather than symbolic regulation
The Bill also empowers the Central Government to frame rules for implementation, subject to parliamentary oversight.
A Balancing Act Between Innovation and Accountability
According to the Statement of Objects and Reasons, the Bill aims to strike a balance—promoting innovation and public trust in AI while safeguarding individuals and communities from unethical, opaque, or discriminatory AI applications.
If enacted, the Artificial Intelligence (Ethics and Accountability) Bill, 2025 could become India’s first dedicated statutory framework on AI ethics, positioning the country among jurisdictions proactively regulating AI governance rather than reacting to harm after the fact.
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