Indian tech experts are raising alarms over the rapid rise of DeepSeek, a Chinese AI startup challenging the dominance of US tech giants like OpenAI and Google. Many legal experts are demanding immediate intervention of the Indian government to regulate the AI sector in India.
DeepSeek’s AI model, built using open-source technology and cheaper chips, costs just 2% of OpenAI’s O1 model, making it highly accessible. With a development cost of just $6 million, DeepSeek is setting new benchmarks for affordable AI, posing both opportunities and risks for India’s tech landscape.
Dinesh Jotwani, an advocate at the Supreme Court of India, stresses that DeepSeek’s success highlights the urgent need for India to regulate AI. “India should develop a comprehensive regulatory framework for AI that addresses data protection, privacy, and liability issues.,” says Jotwani.
However, he warns that without proper regulation, data protection, privacy safeguards, and intellectual property rights, India may fall behind in the rapidly advancing AI race.
Jotwani also emphasized, “India should invest in AI research and development to ensure it remains at the forefront of this rapidly evolving field. This investment should focus on developing both cutting-edge AI technologies and affordable AI solutions for businesses and consumers.”
To remain competitive, India needs to implement a comprehensive AI regulatory framework, invest in research and development, and promote AI adoption across various sectors.
The government must also collaborate with international bodies and protect the country’s AI models under a robust trade secret law. The Ministry of Electronics and Information Technology continues to make recommendations yet India has not executed any decisive steps.
Despite its critical importance the proposal for the Trade Secret Protection Bill has remained in a state of stagnation. The current priority for India requires a calculated method to support innovation combined with strong legal protections.