Authors: Shailja Jha
Abstract: The rapid proliferation of Artificial Intelligence (AI) technologies has exposed significant limitations in traditional state-centric regulatory frameworks, particularly in complex and diverse jurisdictions such as India. This paper advances the concept of a transition from a “regulatory state” to a “regulatory space,” emphasizing the distributed, multi-actor nature of AI governance. Drawing on comparative regulatory theory, the study analyzes how India’s AI governance is characterized by institutional fragmentation, overlapping mandates, and sector-specific regulatory interventions rather than a unified legal framework. By examining key regulatory bodies, policy instruments, and emerging guidelines across domains such as data protection, digital markets, and sectoral compliance, the paper maps the contours of India’s evolving AI governance ecosystem. It further compares India’s approach with global models, including the European Union’s risk-based regulatory regime and the United States’ market-driven governance structure, to highlight divergences and convergences in regulatory philosophy. The analysis demonstrates that India’s fragmented governance structure, while often viewed as a limitation, may also function as a flexible “regulatory space” that enables adaptive, context-sensitive oversight. However, this flexibility comes with challenges related to coordination, accountability, and enforcement consistency. The paper concludes by proposing a hybrid governance model that integrates centralized policy direction with decentralized regulatory innovation, thereby aligning India’s AI governance with both domestic priorities and global regulatory trends.