Can Global Legal Systems Keep Pace With Artificial Intelligence’s Negative Impact

Author: LawSphereX

Category: Technology, Cyber & Privacy

Published: 2026-08-23T18:38:15.726Z

Updated: 2026-08-30T07:08:48.252Z

CAN GLOBAL LEGAL SYSTEMS KEEP PACE WITH

ARTIFICIAL INTELLIGENCE’S NEGATIVE IMPACT?

Keshav Poddar, Maharaja Agrasen Institute of Management Artificial intelligence (AI) refers to computerised reasoning based on precise and accurate knowledge, allowing the generation of solutions and insights beyond human cognition. Over the years, AI has evolved into an indispensable tool, revolutionising industries with enhanced efficiency, automation and problem-solving capabilities. Its widespread adoption has yielded immense benefits across various sectors, including healthcare, finance, education and technology. However, this progress has come at a cost, as AI’s flexibility, accessibility and time efficiency have disrupted traditional industries and employment patterns. At the same time AI is limited to datasets which have been stored or make known of by the algorithm. Many nations around the globe have embraced AI as a key driver of economic and industrial development.

Countries like the United States, China and European nations have invested significantly in AI-driven research, integrating it into their systems to improve productivity, decision-making and innovation. In contrast, India has maintained a cautious stance, deliberately restraining AI’s expansion in certain areas. This approach aims to ensure that human intellect continues to flourish, fostering creativity, critical thinking and individual skill development rather than over-relying on artificial intelligence. India’s measured approach to AI reflects a commitment to nurturing the human mind, encouraging organic growth in various domains. This strategy prioritises intellectual evolution, ensuring individuals refine their capabilities rather than depending excessively on technology driven solutions.

Several case laws and statutes have been discussed in this article, highlighting AI's contributions while also addressing its limitations. These legal frameworks serve as a guide for navigating AI’s role in society, balancing technological progress with ethical and developmental considerations. NEED FOR LAW IN AI The rapid advancement of artificial intelligence (AI) presents both opportunities and challenges, necessitating legal frameworks to regulate its usage. As AI algorithms continue to evolve, they pose significant threats to employment, altering traditional job structures and impacting individuals' daily lives in profound ways. Automation and AI-driven decisionmaking have already begun replacing human labour in various industries, leading to concerns about job displacement and economic instability.

One alarming consequence of AI technology is the rise of deepfake videos, which have been misused to target women worldwide. Perpetrators create deceptive AI-generated content to harass and blackmail victims, causing psychological and reputational harm. Without stringent regulations, the unchecked proliferation of such technology can lead to severe ethical and legal dilemmas. Furthermore, AI has infiltrated the academic sphere, influencing how students approach learning and research. Instead of relying on traditional books and scholarly materials, many students use AI tools to generate articles and blogs, increasing concerns over plagiarism and copyright infringement. The integrity of academic work is at risk, warranting immediate legal intervention to ensure responsible AI utilisation.

Given these pressing concerns, legal frameworks must be established to regulate AI’s role across industries. Specific regulations are needed to govern its ethical application in education, digital security and employment. Additionally, the legal field itself must examine AI’s potential role in judicial processes, determining whether automated systems can assist in legal analysis without compromising fairness and justice. By implementing clear laws and policies, societies can strike a balance between AI innovation and ethical responsibility, ensuring technology serves humanity rather than undermining fundamental rights. INT ORGANISATION UNESCO1 established the first-ever global standard on AI ethics—the Recommendation on the Ethics of Artificial Intelligence—in November 2021. This framework is applicable to all

194 UNESCO member states and serves as a guiding document for responsible AI

1 https://www. unesco. org/en/artificialintelligence/recommendationethics#:~:text=Member%20States%20should%20ensure%20that,ultimate%20huma n%20responsibility%20 and%20accountability. &text=AI%20technologies%20should%20be%20assessed,the%20UN's%20Sustaina ble%20Development%20Goals. deployment. At its core, the Recommendation prioritises the protection of human rights and dignity, reinforcing fundamental principles such as transparency, fairness and the necessity of human oversight in AI systems. What makes the framework especially practical is its comprehensive Policy Action Areas, which enable policymakers to convert ethical principles into tangible measures across key sectors ranging from data governance and environmental sustainability to gender equity, education and healthcare.

AI holds immense potential to advance the UNITED NATIONS2 mission by fostering inclusivity, reducing inequalities and accelerating nearly 80% of the Sustainable Development Goals3 (SDGs). It can enhance healthcare diagnostics (SDG 3), improve climate resilience in agriculture (SDGs 2 and 15), personalise education (SDG 4) and optimise humanitarian response through crisis mapping and aid distribution. Beyond development, AI aids global crisis management and climate-induced displacement efforts. Yet, access to AI remains unequal, concentrated in a few dominant entities. As UN Secretary General António Guterres emphasised, bridging this gap requires international collaboration to ensure AI benefits reach developing nations equitably.

AI has the potential to drive inclusivity, reduce inequalities and accelerate nearly 80% of the Sustainable Development Goals (SDGs), strengthening the UN’s efforts. It can enhance healthcare (SDG 3), improve climate resilience in agriculture (SDGs 2 and 15), personalise education (SDG 4) and optimise humanitarian response. Beyond development, AI aids crisis management and fosters international cooperation in addressing climate-induced displacement. However, access remains uneven, concentrated in a few nations and corporations. The EUROPEAN UNION4 aims to ensure AI is safe, transparent and ethical, advocating for human oversight to prevent harm. Parliament also seeks a technology-neutral definition for future AI systems. In 2023, the OECD5 introduced the AI Incident Monitor6 (AIM) to track AI-related events reported by reputable global media.

AIM leverages machine learning to detect and categorise incidents, analysing key sections of news articles, including titles, abstracts and initial

2 https://www.un.org/en/global-issues/artificial-intelligence

3 https://www.undp.org/sustainable-development-goals

4 https://www.europarl.europa.eu/topics/en/article/20230601STO93804/eu-ai-act-first-regulation-onartificialintelligence

5 https://www.oecd.org/en/topics/policy-issues/artificial-intelligence.html 6

https://incidentdatabase. ai paragraphs. Between 2022 and 2023, AI-related incidents surged by approximately 1278%, coinciding with the rise of generative AI. While AI adoption by firms remains relatively low, advancements such as ChatGPT, decreasing costs and a growing AI-skilled workforce indicate that OECD nations may be on the verge of an AI revolution. A new OECD survey highlights AI's opportunities and risks in manufacturing and finance. The United Nations General Assembly (UNGA) has adopted its first global resolution on artificial intelligence (AI), urging nations to safeguard human rights, protect personal data and monitor AI-related risks. The non-binding resolution, proposed by the United States and cosponsored by China along with over 120 member states, was unanimously approved. US Ambassador Linda Thomas-Greenfield emphasised global unity in AI governance.

This resolution aligns with worldwide efforts to regulate AI. In a significant development, the European Parliament has passed the most comprehensive legally binding AI regulations to date, aimed at addressing risks based on the technology’s potential societal impact. LAWS IN INDIA India has implemented several laws and policies to regulate artificial intelligence (AI), addressing various challenges and discrepancies related to its usage. While these legal frameworks provide significant oversight, there remain critical blind spots that necessitate urgent reforms in response to the evolving digital landscape and societal advancements. In an era where AI is influencing diverse sectors, ensuring that legal frameworks are adaptable and comprehensive is imperative.

The Information Technology Act, 20006, serves as India's primary legislation governing electronic transactions, digital governance and cybersecurity. Although enacted before AI technologies became mainstream, several provisions within the Act apply to AI-related activities, particularly in areas such as cybercrime, data protection and liability for automated systems. India enacted the Digital Personal Data Protection Act, 20237 on August 11, 2023, establishing a robust framework for the collection, storage, processing and sharing of personal data. Given that AI systems handle vast amounts of user data, this law plays a crucial role in

6 https://dot.gov.in/sites/default/files/itbill2000_0.pdf

7 https://www.meity.gov.in/static/uploads/2024/06/2bf1f0e9f04e6fb4f8fef35e82c42aa5.pdf

ensuring that AI-driven applications adhere to stringent data protection principles. It mandates compliance with privacy norms, safeguarding individuals from data exploitation. The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 20218 regulate intermediaries such as social media platforms, digital news media and OTT services. These rules require intermediaries to ensure that their platforms do not host, display, or transmit unlawful content. This provision is particularly relevant to AI systems generating automated content, including deepfakes, manipulated media and misinformation. Released in May 2022, the Draft National Data Governance Framework Policy (NDGFP)9 aims to modernise India’s data governance structure by creating a robust ecosystem for AI and data-driven research and start-ups.

It proposes the development of a comprehensive repository of datasets to support AI model training, ensuring accessibility to high-quality data for researchers and developers. The accuracy and relevance of data used in AI models directly impact their efficiency, making this policy fundamental to AI innovation. India’s first National Strategy for Artificial Intelligence,201810, introduced by NITI Aayog in 2018, promotes an inclusive approach to AI development under the initiative #AIForAll. It emphasises AI applications across key sectors. The strategy focuses on fostering innovation while maintaining necessary regulatory frameworks to ensure ethical AI adoption. Expanding on its AI strategy, NITI Aayog released the Principles for Responsible AI in 202111, which outline guidelines for ethical AI development.

These principles focus on: • System Considerations: Transparency in AI-driven decision-making, accountability mechanisms and inclusivity. • Societal Considerations: Impact on employment, automation and economic 8 https://www. meity. gov. in/static/uploads/2024/02/Information-Technology-Intermediary-Guidelines-andDigital- Media-Ethics-Code-Rules-2021-updated-06. 04. 2023-. pdf

9 https://www.pib.gov.in/PressReleasePage.aspx?PRID=1845318

10 https://www.niti.gov.in/sites/default/files/2023-03/National-Strategy-for-Artificial-Intelligence.pdf

11 https://www.niti.gov.in/sites/default/files/2021-08/Part2-Responsible-AI-12082021.pdf

transformation. These guidelines are designed to support AI governance, ensuring that AI systems are developed and deployed responsibly. Despite these regulatory efforts, India lacks specific legislation addressing AI-generated deepfakes and misinformation. While provisions in the Information Technology Act, 2000 and the Bharatiya Nyaya Sanhita,2023 provide measures to combat crimes associated with deepfakes, a more dedicated framework is needed to tackle AI-generated misinformation comprehensively. As AI technologies continue to evolve, legal and ethical challenges will demand continuous policy updates and legislative reforms. Policymakers must work towards bridging existing gaps, enhancing AI-specific legal frameworks and fostering responsible AI innovation while safeguarding public interests.

INDIA’S INVESTMENT India's artificial intelligence sector is poised for significant expansion, driven by substantial government investments aimed at fostering innovation and technological leadership. In 2024, the government allocated INR 103 billion over a five-year period to accelerate AI development. This funding is strategically directed toward enhancing computing infrastructure, supporting AI-driven start-up’s and establishing a National Data Management Office to improve data quality and accessibility for AI projects. The overarching goal of these investments is to position India as a global AI hub, fostering responsible development while ensuring strong regulatory oversight. By prioritising AI governance, ethical implementation and cutting-edge research, India aims to balance innovation with accountability, enabling sustainable and impactful AI growth across industries.

CONCLUSION

Artificial Intelligence has undeniably become an indispensable tool in today's world, revolutionizing industries and simplifying daily tasks for users. Its efficiency and problem- solving capabilities have made it an integral part of modern life. However, beneath its convenience lies a hidden cost that is increasingly affecting humanity. The growing reliance on AI is shaping how people think, learn and make decisions, often diminishing their ability to engage in independent critical thinking. As individuals become more dependent on AI-driven algorithms, the risk of over-reliance intensifies, potentially leading to a generation that views AI as the ultimate solution to all challenges, rather than fostering human ingenuity and resilience. Moreover, the accessibility of AI comes with concerns related to personal data.

Users willingly share their information, sometimes without fully grasping the potential privacy implications. As AI systems collect and process vast amounts of personal data, ethical concerns surrounding surveillance, data security and misuse arise. While AI continues to evolve and provide immense benefits, it is crucial to approach its usage with caution, ensuring that its advantages do not come at the cost of the fundamental need for human creativity, independent thought and privacy protection.