India's Economic Advisory Council to the Prime Minister warns of dangers and current inadequacy in global AI regulations.

The council criticizes existing regulatory approaches by major global powers and proposes a decentralized, self-organizing system for AI regulation.

Five regulatory measures are recommended: guardrails, manual overrides, transparency, accountability, and a specialized regulatory body.

The council advises using financial market regulation as a model for AI oversight, suggesting AI regulators akin to financial watchdogs.

There is a significant concern over AI's role in critical infrastructure and defense, emphasizing the need for human control and oversight.

The council acknowledges that strict regulations may limit certain AI applications but argues that the benefits outweigh the potential restrictions.