By Deepti Chaturvedi and Pallavi Das
“AI is writing a code for humanity, but proceed with caution,” said Prime Minister Narendra Modi during his visit to the AI Summit in France, referring to the unprecedented speed and scale at which AI is developing.
Intellectual property (IP) and data security require robust AI governance mechanisms and regulations. The rapid pace of technological advancement highlights the need for a dynamic legal landscape, especially concerning intellectual property rights (IPR) and AI.
The European Union AI Act, introduced in 2024, represents a significant step towards establishing a comprehensive regulatory framework for AI. As the first of its kind, the Act has the potential to set a global standard and influence the development of AI regulations worldwide.
A preliminary study of the Act shows that its main objectives are to control, harmonise and ensure accountability in the use of AI. It addresses key principles such as fundamental rights, transparency, security, IPR and the ethical use of AI.
Though India does not have a specific Act or legislation dedicated to AI governance like the EU AI Act, the proposed Digital Personal Data Protection (DPDP) Act 2023 and the Digital India Act 2023 aim to address emerging challenges related to personal data breaches and data infringement.
Despite broad agreement that AI-powered technologies benefit businesses and everyday life, challenges remain regarding their responsible development and use. Existing copyright laws, particularly those concerning reproduction and transformation rights, are being tested by the pace of AI progress.
In India, the Copyright Act 1957 is not currently equipped to handle questions of authorship and ownership in relation to AI-generated content.
The introduction of the European Union AI Act has prompted legislative reform and new efforts to regulate AI, reflecting a global attempt to establish comprehensive rules in this rapidly evolving field. Policymakers around the world now recognise the need to balance technological innovation with the rights of copyright holders.
Studies show that deep learning models such as generative AI, which can produce high-quality content and images, are now widely accessible. This development raises complex legal dilemmas around copyright infringement, as AI-generated content often uses material without proper attribution or authorisation from original creators.
A recent trend of AI mimicking the art style of Studio Ghibli has heightened copyright concerns. Founded nearly four decades ago in Japan, Studio Ghibli is known for its hand-painted animation in films such as Princess Mononoke and Spirited Away, featuring a distinct aesthetic unique to the studio.
These artistic elements include specific colour palettes and stylised landscapes. However, AI tools have begun transforming images into imitations of the Ghibli style.
This poses a two-fold threat to Studio Ghibli. First, replicating a well-known artistic style undermines the goodwill of the original creator. Second, such imitation can mislead consumers about the authenticity of the work.
The increasing practice of creators seeking authorship and ownership for content fully generated by AI raises ethical questions. If AI can independently generate content, it prompts the debate over whether AI itself should be recognised as an author or owner of intellectual property.
As laws are typically prospective, legal frameworks must evolve to match the growth of the global AI industry. The risks and benefits of generative AI extend beyond national borders, highlighting the need for international policies to address cross-jurisdictional issues. While global legal frameworks for AI are still taking shape, individuals must act responsibly in using AI systems.
Artificial Intelligence exposes users to legal risks
Generative AI exposes users to legal risks of inadvertently using copyrighted material. Some technology companies are beginning to offer indemnity to users and introduce watermarking techniques. However, without sufficient laws, users may unknowingly infringe IP rights and face legal notices from original creators.
Until regulations catch up, individuals and organisations must safeguard IP rights even in the absence of explicit legislation.
In India, the National Strategy for AI, known as #AIforAll and issued by Niti Aayog, remains the key guiding document for the country’s AI ecosystem. The G7 AI Principles and Code of Conduct (AIP & CoC) represent efforts by governments to create a coordinated global framework for the responsible and safe development of AI systems.
Globally, several charters are being developed to regulate AI in line with principles of fundamental rights, transparency and security. The OECD Principles on AI, first adopted in 2019 and updated in May 2024, provide recommendations for policymakers. The G20 Declaration supports the responsible development of AI through pro-innovation regulatory frameworks.
UNESCO’s Global AI Ethics and Governance Observatory aims to help regulators, policymakers and academics address ethical and governance challenges linked to AI. This initiative builds on the Recommendation on the Ethics of Artificial Intelligence adopted by 194 member states in 2021.
Since AI systems operate beyond specific jurisdictions, international cooperation is crucial to regulate their use. To tackle the ethical challenges posed by large language models (LLMs), companies must work with governments, regulators and policymakers.
Corporations such as Alphabet, Amazon, Meta and Microsoft, which lead in AI research and development, play an important role in shaping both technology and emerging regulation. Yet, the limited number of international charters, guidelines and laws governing AI highlights a significant regulatory gap.
Creating new legislation and case precedents is often slow and resource-intensive. Developing appropriate laws for AI systems while aligning with national and international standards requires global collaboration, especially since AI transcends borders.
However, AI continues to evolve faster than regulation, and many countries still lack any statute to govern AI systems. These gaps in global AI governance demand urgent attention, particularly to manage future cross-border disputes over intellectual property and copyright infringement.
Deepti Chaturvedi is a Teaching Associate and Pallavi Das an Academic Associate in Organisation and Leadership Studies at S.P. Jain Institute of Management and Research (SPJIMR). Views are personal.
