Tech & AI

LEGAL CHALLENGES IN IDENTIFYING & PROSECUTING AI-GENERATED FRAUD Deepfakes-AI-generated videos, images, or audio-are becoming a serious legal and security threat. They can be used for fraud, misinformation, identity theft, and even political manipulation. As technology advances, legal systems struggle to keep pace with AI-driven deception. Identifying, proving, and prosecuting deepfake crimes presents new challenges for law enforcement and courts worldwide. Let’s explore the key hurdles in deepfake litigation. WHAT ARE DEEPFAKES & WHY ARE THEY A CONCERN? Deepfakes use an AI models to manipulate or create hyper-realistic content that can deceive viewers. While some are harmless, many are used for malicious purposes, including: With deepfakes becoming more sophisticated, proving the difference between real and AI-generated content is getting harder. This raises major concerns for legal enforcement. IDENTIFYING DEEPFAKES – THE FIRST LEGAL HURDLE Before prosecuting deepfake crimes, the first challenge is proving that a piece of content is AIgenerated. This involves: Without solid proof, courts may struggle to convict perpetrators, allowing harmful deepfakes to spread unchecked. CHALLENGES IN PROSECUTING DEEPFAKE CASES IN INDIA Even when deepfakes are identified, prosecution faces multiple hurdles: Without AI-specific legal provisions, deepfake crimes often go unpunished. LEGAL PROVISIONS IN INDIA COVERING DEEPFAKES Since there are no deepfake-specific laws in India, cases rely on existing legal provisions: While these laws provide some protection, they do not fully address deepfake complexities. NEED FOR AI-SPECIFIC REGULATIONS To combat deepfake misuse effectively, governments and legal bodies must introduce AI-specific regulations: A proactive legal approach is essential to keep up with AI advancements. RECENT DEVELOPMENTS & FUTURE OF DEEPFAKE REGULATION India is gradually taking steps toward regulating AIgenerated content: As deepfake technology advances, Indian laws must evolve to ensure justice and accountability. CONCLUSION What are your thoughts on deepfake regulation in India? Should India introduce a dedicated deepfake law? Share your opinions below! Stay tuned for more legal insights!

Introduction The legal sector is at a technological turning point with the rise of AI, poised to revolutionize forecasting and analytics. As AI integrates deeper into legal processes, a key question emerges: Could it replace human expertise in legal prediction? While AI excels in data processing, pattern recognition, and insights, Lawyers contribute indispensable skills like: The Rise of Predictive AI in Law Predictive AI is transforming legal analysis by leveraging data-driven insights from historical cases, judicial decisions, and legal trends. By analyzing vast databases of court rulings and precedents, AI identifies patterns and predicts outcomes with remarkable speed and accuracy. Modern AI systems mimic human reasoning and process millions of documents in seconds, uncovering subtle trends beyond human reach. By enhancing human expertise, predictive AI helps legal professionals make informed decisions, anticipate outcomes, and refine strategies, marking its growing importance in the future of legal analysis. Key Technological Capabilities AI revolutionizes legal analysis through four key capabilities: Limitations of Predictive AI Despite its capabilities, predictive AI has limitations that prevent it from replacing human lawyers: These limitations highlight the irreplaceable role of lawyers in ensuring justice with compassion and understanding. The Future of Law Collaborative Intelligence The most promising path forward lies not in replacing lawyers with AI, but in harnessing the power of collaborative intelligence. By combining the strengths of human legal expertise with the capabilities of predictive AI, we can create a more efficient, effective, and just legal system. Key Principles of Collaborative Intelligence Benefits of Collaborative Intelligence Conclusion Predictive AI is revolutionizing the litigation landscape, offering unparalleled analytical capabilities that are transforming the way lawyers work. While AI is unlikely to fully replace human lawyers in the foreseeable future, it will undoubtedly become an indispensable collaborative tool. Rather than pitting machine against human, the future of law lies in the powerful synergy between artificial intelligence and human expertise. By combining the strengths of both, lawyers can: In the future, AI will augment human capabilities, freeing lawyers to focus on higher-value tasks that require creativity, empathy, and complex problem-solving. As the legal profession continues to evolve, one thing is clear: the future of law is human-AI collaboration. As AI assumes a more prominent role in legal prediction, it’s likely that the profession will evolve into a collaborative model. Lawyers will work alongside AI systems to leverage their respective strengths and provide more accurate, efficient, and effective legal services. Ultimately, the future of legal prediction will depend on striking a balance between the capabilities of AI and the expertise of human lawyers. By embracing this synergy, the legal profession can harness the power of AI to enhance decision-making, improve outcomes, and deliver more value to clients Stay tuned for more legal insights!

Understanding E- litigation E-litigation represents a paradigm shift in the Indian judiciary, seamlessly integrating new-age technology into traditional litigation processes. This transformative approach enables courts to digitize case filing, hearings, record management, and workflow, thereby enhancing the judicial system’s accessibility, efficiency, and transparency. Through the strategic deployment of digital tools, e-litigation facilitates expedited justice delivery among stakeholders, including litigants, lawyers, and judges. This modernized framework aims to revolutionize the Indian judiciary, ensuring a more streamlined, accountable, and citizencentric justice system. Movement towards E- litigation The COVID-19 pandemic presented an unprecedented opportunity for the Indian judiciary to adopt e-litigation. In response to lockdown restrictions, courts began exploring virtual platforms for hearings and filings. The Supreme Court of India has been instrumental in driving this initiative, launching projects such as e-courts and digitized case management systems under the National eGovernance Plan (NeGP). E-litigation offers numerous benefits, including enhanced efficiency, accessibility, and transparency. By minimizing delays and paperwork, e-litigation enables lawyers and litigants to save time and resources. Furthermore, advances in AI, blockchain, and cloud computing have made it possible to develop secure, efficient, and reliable e-litigation systems. Advantage of digital court The adoption of digital courts yields numerous advantages, including: Litigation platform in India Various e-litigation platforms have already been implemented to revolutionize the judicial process: Chalenges in E-litigation The increasing reliance on e-courts also raises concerns about unequal access to justice, as not everyone has the necessary resources, such as internet connectivity, digital literacy, and devices, to effectively participate in online legal proceedings. Digital Divide: The lack of access to technology, internet connectivity, and digital literacy in rural areas creates a significant barrier for litigants. Cyber Security and Privacy Concerns: The increased reliance on technology raises concerns about the security and privacy of sensitive legal data. Resistance to Change: The judiciary’s traditionalists often resist digital practices, citing lack of technical knowledge or preference for conventional methods. Infrastructure and Training Gaps: The successful implementation of e-litigation requires significant investments in robust IT infrastructure, as well as comprehensive training for judges, lawyers, and court staff. Conclusion The advent of legal technology has brought about a paradigm shift in the legal domain, empowering legal professionals to work more efficiently and effectively. Nevertheless, the integration of these technologies raises important ethical considerations. To ensure that technology is harnessed responsibly, legal professionals must be mindful of data privacy, cybersecurity, and the need to preserve the human element in legal practice. By exercising their professional judgment and expertise, legal professionals can leverage technology to augment their capabilities, improve service delivery, and ultimately enhance the administration of justice. Further, access to justice must be inclusive and equitable, regardless of one’s digital capabilities; therefore, it is crucial that we address the digital divide and ensure that no one is denied access to justice. Stay tuned for more legal insights!

REVOLUTION IN DISPUTE RESOLUTION What is ODR? ODR refers to the resolution of disputes through online platforms and digital communication tools. This process can include negotiation, mediation, arbitration, and other forms of conflict resolution conducted remotely, significantly reducing the need for physical presence in courts. Why Now? The digital age demands faster, more accessible justice. India’s tech-savvy population and growing internet penetration make ODR the natural evolution in dispute resolution. LEGAL FRAMEWORK The Indian government has recognized the importance of ODR, particularly in the context of the growing e-commerce sector. Initiatives like the “Digital India” campaign and the introduction of the Arbitration and Conciliation (Amendment) Act, 2021, have paved the way for a more robust legal framework supporting ODR. TECHNOLOGY STACK POWERING ODR GAME-CHANGING FEATURES AI in ODR → Predictive analysis for case outcomes → Automated document review → Smart scheduling and case management Did You Know?AI can process thousands of previous cases in seconds to suggest optimal settlement ranges! MAJOR PLAYERS TRANSFORMING THE LANDSCAPE Leading Platforms: • SAMA: Specializing in consumer disputes • CORD: Focus on commercial arbitration • ICICI’s Platform: Banking & financial disputes Success Rate: Over 60% resolution within 60 days! BREAKING DOWN THE BENEFITS Cost Savings: 📉 60% reduction in administrative costs📉 Zero travel expenses 📉 Reduced paperwork costs Time Efficiency: ⚡ 40% faster than traditional ⚡ arbitration Instant document sharing ⚡ Automated scheduling WHERE TECHNOLOGY MEETS JUSTICE Security Features:✓ End-to-end encryption ✓ Blockchain-based document verification ✓ Multi-factor authentication Accessibility Highlights:– Mobile-friendly platforms– Vernacular language support– 24/7 case access ADDRESSING KEY CHALLENGESCHALLENGE 1: Digital Divide Solution: Hybrid hearing options & tech support centres CHALLENGE 2: Cybersecurity Solution: Regular security audits & encrypted communications CHALLENGE 3: User Adaptation Solution: Interactive training modules & simplified interfaces Stay tuned for more legal insights.

DIGITAL PERSONAL DATA PROTECTION BILL, 2023 In August 2023, the Rajya Sabha passed the Digital Personal Data Protection Bill (DPDP), marking a crucial shift in India’s data protection framework. Once enacted, it will replace the dated provisions of the Information Technology Act, 2000, establishing a comprehensive regime focused on safeguarding personal data. This is timely, as artificial intelligence is rapidly becoming indispensable in daily life. The DPDP Act ensures that AI systems, which depend on vast amounts of personal data, adhere to strict privacy standards, driving a move toward privacy-centric AI development. NAVIGATING PRIVACY CHALLENGES IN AI CONSENT MECHANISM Implementing consent mechanisms across diverse languages and literacy levels. DATA LOCALISATION Ensuring localisation data for sensitive information BIASES Addressing biases in AI decisions TRANSPARENCY while complying with new regulations TRANSPARENCY Balancing transparency requirements with AI complexity. In fact, the Global tech body Information Technology Industry Council (ITIC), a Council representing 80 technology firms including giants like Apple, Amazon, Google, and Microsoft, has urged the Indian government to strike a balance between individual privacy and innovation in the country. INDIA’S DATA PROTECTION FRAMEWORK Under the DPDP Bill, handling sensitive personal data—such as biometric or health data—requires more stringent controls. AI developers must implement robust mechanisms to classify and secure sensitive information, ensuring that it is only used for lawful and appropriate purposes. The Data Protection Board of India (DPBI), which will be established once the Bill is notified, will monitor compliance and investigate any potential violations, imposing penalties up to INR 250 cr. if regulations are breached, thus making sensitive data protection a top priority for AI companies. CONSENT AND PURPOSE LIMITATION The DPDP Bill requires explicit, informed consent from data principals before collecting or processing their personal data. Consent must be in plain language and specify the intended purpose. The Bill emphasizes the principle of purpose limitation, which mandates that data can only be used for the purposes disclosed at the time of collection. If companies wish to use data for new purposes, fresh consent is required. LEGAL FRAMEWORK FOR DATA LOCALISATION The DPDP Bill introduces data localization rules, particularly for sensitive data like health and financial information, which must be stored and processed within India. AI systems relying on global data infrastructure will need to restructure their operations. Cross-border data transfers are allowed only under strict conditions, such as adequate protection in the recipient country or government-approved safeguards. These requirements force AI companies, particularly those with cloud-based or international operations, to restructure their data management systems to meet localization mandates. Therefore, ITIC has requested an 18–24 month grace period after the Act is notified to make their systems fully compliant with the localization mandates. TRANSPARENCY & ACCOUNTABILITY The DPDP Act will enforce strong transparency and accountability measures. Companies must clearly inform users about the collection, use, and sharing of their personal data through comprehensive privacy notices. Regular data audits, impact assessments, and reporting will be required to ensure compliance. Companies will be required to implement data governance frameworks and appoint Data Protection Officers (DPOs) where necessary. These measures will ensure that companies handle personal data responsibly while building user trust by fostering transparency in data processing activities. CONCLUSION The DPDP Act, 2023, once enacted, will mark a significant shift in India’s data privacy landscape. It will provide a robust framework for protecting personal data, impacting sectors that rely heavily on data processing, such as AI. By prioritizing privacy rights and setting high compliance standards, the DPDP Act will encourage companies to adopt more responsible data practices. For AI developers and businesses, the Act will demand a balanced approach, promoting innovation while ensuring that personal data is handled lawfully, ethically, and transparently. Stay tuned for more legal insights.

– Mandeep Singh, Associate The emergence of crypto-currencies has transformed the global financial landscape, and India is no exception to the rapid increase in crypto currency investors entering the market. With a growing market there is a dire need for clear regulations. However, despite, the rapid growth in the cryptocurrency market in India the Government’s ambivalence towards cryptocurrencies has resulted in a regulatory vacuum, leaving exchanges to operate in a grey area. India’s regulatory approach to crypto-currencies has been cautious yet unclear, reflecting concerns about security, money laundering, and financial stability. In 2013, the Reserve Bank of India (“RBI”) issued a warning about the risks associated with virtual currencies, highlighting the potential for volatility, fraud, and illicit activities. The sui-generis nature of crypto-currencies makes it fall out of the conventional definition and ambit of a financial instrument and asset. The RBI has already expressed its concern and suspicion on the feasibility of crypto-currencies published a Circular bearing No. RBI/2017-18/154 dated 06th April 2018 (“RBI Circular”) which banned banks from dealing with crypto exchanges in any manner. However, the Hon’ble Supreme Court in 2020 was pleased to set aside the RBI Circular in the judgement dated 04.03.2020 passed in Writ Petition (Civil) No. 528 of 2018. Despite, the Ruling of the Hon’ble Supreme Court in Writ Petition (Civil) No. 528 of 2018, the RBI Circular has continued to have an impact on the future of the crypto-currencies and resulted in various crypto-exchanges to shut their operations in India, leaving the investors in a state of confusion and uncertainty. Pursuant to the Hon’ble Supreme Court quashing and setting aside the RBI Circular, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 (“Crypto Bill’) aimed to prohibit mining, holding, selling and dealing in private crypto-currencies and issuing/trading in crypto-currencies related in derivatives and aimed to create an official digital currency issued by the RBI and vesting the powers to regulate, issue, supply and manage crypto-currency. This was introduced as a measure to protect consumer interests, prevent money laundering and promote financial stability in crypto-currencies. The Bill was introduced in the 2021 winter session, however, the Bill has not come into operation making its current status uncertain. Due to the lack of regulations and the fluctuations in the status of cryptocurrencies in India, certain alarming revelations have unfolded in India regarding cryptocurrency, which have resulted in hardships for the investors and the exchanges, such as destressed closures of operations and investors forced to divest funds in grave paucity of time, Coinome, a Billdesk backed cryptocurrency Exchange, suspended its operations in India in 2019 due to the prevailing uncertainty on cryptocurrency guidelines and regulations in India. In another instance, Zebpay, one of the leading Cryptocurrency Exchanges in India, was constrained to shut down its operation in India in 2018, pursuant to the RBI ban on banks dealing with cryptocurrency. Currently, crypto-currencies are not recognized as legal tender in India, the treatment of crypto-currencies in India for the purposes of taxation are also ambiguous as there is no law and/or regulation, which is regulating the taxation for crypto-currencies. there is no specific law governing taxation of cryptocurrency or definition of ‘income’ from cryptocurrency, the Indian Government vide the Finance Bill, 2022 has introduced 30% Income tax on Cryptocurrencies and subjected cryptocurrency to the grasp of GST as well. Furthermore, crypto currency is subject to income tax and Goods and Services Tax (“GST”). Crypto-currency exchanges must also comply with Anti-Money Laundering (“AML”) and Know-Your-Customer (“KYC”) norms, ensuring that transactions are transparent. These regulations demonstrate the government’s willingness to acknowledge the existence of crypto-currencies while ensuring they operate within established financial frameworks however, the government’s approach may be counterproductive, driving crypto activity underground and making it even harder to regulate. A more nuanced approach, recognizing the sui generis nature of crypto assets, is needed. The lack of clarity surrounding crypto-currency legality has led to confusion among investors, traders, and financial institutions. Furthermore, the absence of clear guidelines has created regulatory ambiguity. A clear regulatory framework would enable businesses to operate with confidence, attract foreign investment, and drive economic growth. Public awareness campaigns would educate users about the risks and benefits associated with crypto-currencies, promoting responsible trading and investment. In conclusion, the crypto industry in India is navigating a complex regulatory landscape, the government and regulatory bodies in India must address the regulatory ambiguity surrounding Exchanges, the lack of specific regulations leaves the industry in a state of uncertainty. By doing so, India can establish a robust framework for the growth of crypto-currency. The Indian government and regulatory bodies must address the regulatory ambiguity surrounding crypto-currency and the impact it has on the investor’s mindset, protection and confidence as well as the survival of the crypto-currency exchanges operating within India. Indian investors have displayed their interest and intrigue, which is growing stronger each year with more and more investors investing in crypto currencies, the Govt. ought to realize the growing trend and the need to provide certain safeguards to many investors investing in the crypto markets. Moreover, the Indian government should consider establishing a specialized regulatory body to oversee the crypto-currency market and maintain vigilance, much like how Securities and Exchange Board of India (“SEBI”) maintains vigilance over the stock market. This entity would provide dedicated expertise, monitor market trends, and respond to emerging challenges. Ultimately, the future of crypto-currency regulation in India will depend on the government’s ability to strike a balance between regulatory oversight and innovation. By embracing this challenge, India can unlock the potential of crypto-currencies, enhance its financial landscape, and cement its position as a hub for technological innovation.

Indian Evidence Act & BSA Until recently, the Indian Evidence Act, 1872 (IEA) was the primary legislation governing the admissibility and evaluation of evidence in both criminal and civil cases in India. However, with effect from 01.07.2024, this landmark legislation has been superseded by the Bharatiya Sakshya Adhiniyam, 2023 (BSA), marking a significant shift in the country’s evidentiary framework. The BSA aims to establish a comprehensive legal framework for electronic records, tackling the intricacies of digital evidence in India. This entails introducing novel definitions, benchmarks, and protocols to validate and confirm the authenticity of electronic records, thereby rendering them trustworthy evidence in judicial proceedings. Key Changes The IEA’s territorial application was explicitly limited to India (Section 1), whereas the BSA’s Section 1 omits this geographical restriction. This omission appears to be a deliberate move to facilitate the admission of digital evidence originating from outside India, potentially broadening the Act’s scope to accommodate international digital evidence. Document – Section 2(d), BSA (Sec 3(e) IEA): The BSA broadens the definition of documentary evidence to explicitly include digital and electronic records. The term ‘document’ has been redefined to encompass modern forms of data storage and communication. Notably, an illustration has been added to clarify that ‘electronic records on emails, server logs, documents on computers, laptops or smartphones, messages, websites, locational evidence, and voice mail messages stored on digital devices are documents.’ This expansion is further supported by changes in the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). Challenges in Ensuring Data Integrity Inclusion of Electronic and Digital Records: The revised definition of a document now explicitly encompasses electronic and digital records, expanding its scope to include any information conveyed, described, or stored electronically through devices like computers, smartphones, or other digital tools. Expansion of Means of Recording: The revised definition takes a more comprehensive approach, acknowledging that information can be recorded in various forms beyond traditional written symbols, numbers, or marks. It now includes any method of capturing information, such as audio or video recordings, or other innovative means of documentation. Intended Use: Both definitions emphasize the purpose of a document is to record information, but the newer definition explicitly includes electronic and digital formats as intended uses. Evidence: The revised definition of ‘evidence’ broadens its scope to encompass electronic oral statements and explicitly includes digital records as documentary evidence, acknowledging the modern shift towards digital information storage and communication in contrast to the old framework, which mainly focused on traditional oral testimony and physical documents, potentially restricting its relevance in today’s digital landscape. Section 57 of the BSA significantly expanded the definition of ‘primary evidence’ to include various forms of electronic and digital records, providing clarity on what constitutes primary evidence in the context of electronic or digital records, addressing a significant gap in the previous legal framework. Interplay of BSA & IT Act Conflicting Definition and Scope of Electronic Records: The BSA introduces a broader definition of electronic records compared to the IT Act. Under the BSA, electronic records now include information stored in semiconductor memory, communication devices, and various digital formats. In contrast, the IT Act defines electronic records more narrowly as “data, record or data generated, image or sound stores, received or sent in an electronic form or microfilm or computer-generated micro fiche.” The BSA broadens the definition of electronic records, potentially creating legal ambiguities with the IT Act’s narrower definition. This discrepancy may lead to inconsistent court applications in cases involving new technologies or digital formats not explicitly covered by the IT Act. Conclusion Admissibility Procedures & Evidentiary Standards: The BSA’s electronic evidence admissibility approach conflicts with IT Act procedures, potentially causing confusion and inconsistencies due to differing requirements and authentication processes. The BSA treats electronic records as primary evidence while simultaneously retaining provisions for certificate authentication. This dual approach may create confusion in court proceedings. Authentication and Integrity of Digital Evidence: The IT Act provides a robust framework for verifying the integrity of certain types of electronic records, whereas the BSA acknowledges the significance of integrity but adopts a more expansive approach, enabling courts to seek expert opinions from Examiners of Electronic Evidence and accepting electronic records from ‘proper custody.’ However, the BSA lacks clear technical guidelines for maintaining the integrity of digital evidence throughout the collection and storage processes, leading to potential risks concerning chain of custody and tampering. The BSA’s modernization efforts, despite initial challenges, will pave the way for a more efficient and effective justice system, as jurisprudence adapts to electronic and digital records.