IAMAI Flags Concerns Over DPDP Act Clause Impacting AI Model Training

The Internet and Mobile Association of India (IAMAI), in a submission to the Ministry of Electronics and Information Technology (MeitY), has said that the ambiguities in the Digital Personal Data Protection Act, 2023 (DPDP Act), concerning the processing of publicly available personal data may pose challenges for tech startups and small businesses.

The industry association said that these ambiguities will particularly impact AI companies using large datasets for training their models.

However, IAMAI members Reliance Jio and Culver Max Entertainment have divergent views from those expressed in this submission.

“Requiring AI companies to determine whether all publicly accessible personal data had been voluntarily made available by data principals themselves was practically unfeasible,” IAMAI said, citing that even in instances 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.

Undue Compliance Burdens on AI Startups

The association added that restrictions on access to publicly available personal data would impose undue compliance burdens on AI companies, hinder technological progress and could ultimately obstruct the realisation of AI’s potential. “Such limitations would disproportionately affect startups and smaller companies developing AI models,” it said.

In its submission, IAMAI has suggested the IT ministry to appropriately amend the DPDP Act to remove barriers to using publicly available personal data for training or fine-tuning of AI models. To that end, IAMAI recommended that the Central government, might as an interim measure, consider exempting data fiduciaries from the DPDP Act’s provisions if such entities are “processing personal data solely for training or fine-tuning of AI models”.

Proposed Solutions For A Clearer And Flexible Path

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 the industry association, such measures would offer much-needed clarity and flexibility, while supporting the responsible and effective growth of AI in the country.

In January, MeitY released draft rules for the Digital Personal Data Protection Act, requiring data fiduciaries to provide data principals with specific details to ensure informed consent for data processing. These draft rules aim to operationalise the DPDP Act by outlining the responsibilities of data fiduciaries and the rights of individuals.

The IAMAI is the latest to ask the ministry for relief under Section 17(5) of the DPDP Act, which empowers the central government to exempt certain data fiduciaries or classes of data fiduciaries from specific provisions of the Act for a specified period. This exemption can be granted through a notification before the expiry of five years from the Act’s commencement.

Earlier this week, the National Payments Corporation of India (NPCI), along with digital payment platforms such as Google Pay, PhonePe and Amazon Pay had asked MeitY for relief under the same section.

The post IAMAI Flags Concerns Over DPDP Act Clause Impacting AI Model Training appeared first on Inc42 Media.