India’s Global Capability Centres face rising legal exposure from generative and agentic AI use, implicating data protection, IP, employment, and consumer laws. Regulatory uncertainty and lack of clear accountability frameworks heighten enterprise risk.
Legal Risks Mount for GCCs Deploying AI Systems
India’s Global Capability Centres (GCCs) are rapidly transitioning from traditional back-office roles to active developers and deployers of generative and agentic artificial intelligence systems. As these centres adopt AI across functions, they face growing liability concerns under existing legal frameworks including data protection, intellectual property, employment law, consumer rights, and cybersecurity regulations.
The absence of a dedicated AI statute in India compounds compliance challenges. Questions around accountability for AI-generated outputs, human oversight requirements, and data provenance remain unresolved. In particular, the Digital Personal Data Protection Act, 2023 does not explicitly define responsibilities for AI trainers or system operators, leaving gaps in liability allocation.
Practitioners must advise clients on risk mitigation through internal governance frameworks, audit trails for AI decisions, and contractual allocations of liability with parent organisations and third-party vendors. As India contemplates broader AI regulation, proactive compliance strategies will be critical for GCCs operating at the intersection of innovation and regulation.
