India's AI Challenge: Balancing Transparency, Innovation, and Accountability in Critical Sectors

August 25, 2025
India's AI Challenge: Balancing Transparency, Innovation, and Accountability in Critical Sectors
  • Deploying Explainable AI (XAI) faces challenges such as balancing accuracy with transparency, addressing linguistic and socio-economic diversity in India, and managing trade-offs between transparency, security, and performance.

  • AI is increasingly impacting critical sectors like governance, healthcare, finance, policing, and education, making transparency and accountability essential as decisions directly affect human lives.

  • While the European Union's GDPR grants a right to explanation for automated decisions, India currently lacks similar legal safeguards in its laws, including the Digital Personal Data Protection Act of 2023.

  • High-profile cases like Apple Card bias against women, racial bias in the COMPAS algorithm, and errors in India’s Aadhaar-linked welfare schemes highlight the risks of non-transparent AI systems.

  • Explainability in AI is crucial to uphold legal principles such as due process, natural justice, and non-discrimination, enabling individuals to contest or seek remedies for biased decisions.

  • India has a unique opportunity to lead with a rights-based, inclusive AI framework that balances innovation with democratic values to build public trust.

  • The main issue with many AI systems is the prevalence of 'black box' algorithms that are complex and opaque, making it difficult to understand, audit, or challenge their decisions.

  • Explainable AI (XAI) seeks to improve transparency through techniques like model-specific methods and tools such as LIME and SHAP, which interpret complex models.

  • Full transparency raises concerns about exposing proprietary algorithms and vulnerabilities, especially in surveillance and fraud detection systems.

  • Effective solutions include sector-wide collaboration, mandatory Algorithmic Impact Assessments, public audits, transparency registers, redress mechanisms, and increasing AI literacy among citizens.

  • Defining the target audience for explanations—whether experts, regulators, or the public—is complex in India’s diverse context and requires balanced regulations to prevent oversimplification or opacity.

  • The 2015 incident involving Amazon’s AI recruiting tool, which perpetuated gender bias and was discontinued, underscores the importance of embedding fairness and ethical considerations in AI development.

Summary based on 1 source


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Urgent need for explainable AI - Hindustan Times

Hindustan Times • Aug 25, 2025

Urgent need for explainable AI - Hindustan Times

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